On-Account Service Charges: Definition and Difference to Flat Rate Rent

What is meant by Akonto? 

The term "Akonto" comes from Italian and means "on account" or "as a down payment". In Switzerland, Akonto is used in both business and private contexts to denote advance payments. In the context of tenancy agreements, Akonto refers to a monthly advance payment made in addition to the net rent.

In a lease for commercial properties, you generally pay a net rent (also called net rental rate) and additional service charges (Nebenkosten). These service charges can be billed in various ways – one of which is the Akonto payment. This means that you pay an estimated amount for service charges in advance each month, which is later offset against the costs actually incurred.

The Akonto payment is therefore a type of advance payment intended to cover the ongoing operating costs of the property throughout the year. At the end of the billing period – usually once a year – a service charge settlement is issued, in which the Akonto payments made are compared with the actual costs.

On-account service charges: How it works 

If you rent a commercial property and service charges are agreed on an on-account basis in the lease, you pay a fixed amount for service charges every month in addition to the net rent. This amount is estimated by the landlord based on experience from previous years and the size of your rental space.

Calculation of on-account service charges 

The amount of the on-account service charges is generally calculated according to a distribution key. For commercial properties, this is often the square footage of your rental space in relation to the total area of the property. For example, if you rent 150 m² of a total of 1,000 m², you bear 15% of the service charges.

The landlord estimates the annual total service charges for the property and divides these among the tenants. This results in your monthly Akonto amount. It is important to note that this amount is only an estimate and the actual costs may turn out to be higher or lower.

The annual service charge settlement 

After the billing period has expired – usually a calendar year – the landlord prepares a detailed service charge settlement. This statement shows the costs actually incurred for heating, water, caretaking, insurance, and other items. Your Akonto payments made are deducted from this.

There are three possible outcomes:
 

• Additional payment: If the actual costs are higher than your Akonto payments, you must pay the difference.

• Refund: If the actual costs are lower than your Akonto payments, you will be refunded the difference.

• Balanced: In rare cases, the Akonto payments match the actual costs exactly.

After the settlement, the landlord may adjust the amount of future Akonto payments to achieve a more accurate estimate.

What is the difference between on-account and flat rate? 

Besides Akonto, there is another common form of service charge billing in Switzerland: the flat rate rent (Pauschalmiete). The fundamental difference lies in the billing and the financial risk.

Service charges on account (Akonto) 

With the Akonto regulation, you pay an estimated monthly amount, which is settled annually against the actual costs. This means:

• You receive a detailed service charge settlement

• You can receive additional payment requests or refunds

• The costs are transparent and comprehensible

• You bear the risk of cost increases (e.g., for heating oil or electricity)

Service charges as a flat rate (Pauschal) 

With flat rate rent (also called "inclusive rent"), the service charges are included in a fixed monthly amount. This means:

• No annual service charge settlement

• No additional payments or refunds

• Predictable, constant rental costs

• The landlord bears the risk of cost increases

Which form is better? 

Both billing forms have their advantages and disadvantages. With on-account service charges, you benefit from transparency and may potentially get money back if the actual costs are lower. However, you also bear the risk of additional payments if, for example, heating costs rise sharply during a cold winter.

Flat rate rent, on the other hand, offers you planning security. You know exactly what monthly costs will be incurred and do not have to fear additional payments. However, you waive any potential refunds. Furthermore, if costs rise significantly, the landlord can request a rent increase in accordance with statutory requirements, which occurs more frequently with flat rate rent than with the Akonto regulation.

Service charge settlement: Rights and obligations 

Swiss tenancy law regulates the rights and obligations regarding service charge settlement in the Code of Obligations (CO). Even though many provisions apply to residential space, some principles also apply to commercial properties unless agreed otherwise in the lease.

Obligations of the landlord 

The landlord is obliged to provide you with a transparent and comprehensible service charge settlement. This should contain the following points:
 

• List of individual cost items (e.g., heating, water, caretaking)

• Indication of the distribution key

• Calculation of your share

• Comparison of Akonto payments with actual costs

• Indication of additional payment or refund
   

The settlement should take place within a reasonable period after the end of the billing period – usually within a few months.

Rights of the tenant 

As a tenant, you have the right to inspect the service charge settlement and demand access to the receipts if anything is unclear. You can object in writing within 30 days of receiving the statement if you consider the settlement to be incorrect.

If discrepancies arise, it is advisable to seek a conversation with the landlord first. In many cases, misunderstandings can be cleared up through an additional explanation. If no agreement can be reached, the path to the conciliation authority is open to you.

Adjustment of Akonto service charges 

After the annual settlement, the landlord can adjust the amount of the Akonto payments to achieve a better match with the actual costs in the future. This adjustment is not to be understood as a rent increase, but as a correction of the advance payment. Nevertheless, the adjustment should be communicated transparently and justified.

Typical service charges for commercial properties 

With commercial properties, service charges can be more extensive than with residential space. Typical items include:

• Heating and hot water: Costs for fuel (oil, gas, district heating) and maintenance of the heating system

• Cold water and sewage: Consumption costs and base fees

• Caretaking and cleaning: Costs for the maintenance of common areas, stairwells, parking lots

• Building insurance: Share of the property's insurance premium

• Administrative costs: In some cases, a share of the administrative costs

• Snow removal and garden maintenance: Winter service and maintenance of green areas

• General electricity: Lighting of stairwells, parking lots, and outdoor areas

• Lift costs: Maintenance and electricity for elevators

It is important that the lease clearly regulates which service charges must be assumed. With commercial properties, there is often more room for negotiation than with residential space, and not all costs are automatically transferable to the tenant.

Conclusion: On-account or flat rate rent – which is better? 

Service charges on account mean that you make a monthly advance payment for ongoing operating costs, which is later offset against the actual costs. In contrast to flat rate rent, with the Akonto regulation you receive an annual statement that transparently shows how high the effective costs were. This offers you the chance of refunds but also entails the risk of additional payments.

The choice between Akonto and flat rate rent depends on your individual preferences. If you value transparency and cost control, the Akonto regulation is the better option. If, on the other hand, you prefer maximum planning security and do not want to experience surprises through additional payments, flat rate rent may be the right choice.

When renting a commercial property via maison.work, you should ensure that the lease clearly regulates which billing form applies and which service charges must specifically be assumed. A careful review of the lease and an open conversation with the landlord help you avoid misunderstandings and find a fair solution for both sides.

This article serves for general information purposes and does not replace individual legal advice. In case of legally complex questions or ambiguities in the lease, we recommend consulting a lawyer specializing in tenancy law or the responsible conciliation authority.