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

What does 'Akonto' mean?

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 refer to advance payments. In the context of rental agreements, Akonto refers to a monthly advance payment made in addition to the net rent.

For a rental agreement for commercial properties, you typically pay a net rent (also called net lease) and additional incidental costs. These incidental costs can be billed in various ways – one of which is Akonto payment. This means that you pay an estimated amount for incidental costs monthly in advance, which is later offset against the actual costs incurred.

The Akonto payment is therefore a type of advance payment used to cover the ongoing operating costs of the property during the year. At the end of the billing period – usually once a year – an incidental cost statement is prepared, comparing the Akonto payments made with the actual costs.

Akonto for incidental costs: How it works

If you rent a commercial property and incidental costs akonto are agreed upon in the rental contract, you pay a fixed amount for incidental costs each month in addition to the net rent. This amount is estimated by the landlord, based on past experience and the size of your rented space.

Calculation of Akonto incidental costs

The amount of Akonto incidental costs is usually calculated using a distribution key. For commercial properties, this is often the square footage of your rented space in relation to the total area of the property. For example, if you rent 150 m² out of a total of 1,000 m², you bear 15% of the incidental costs.

The landlord estimates the total annual incidental costs of the property and divides them 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 be higher or lower.

The annual incidental cost statement

After the billing period – usually a calendar year – the landlord prepares a detailed incidental cost statement. This statement shows the actual costs incurred for heating, water, caretaker services, 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 receive the difference back.

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

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

What is the difference between Akonto and Flat Rate?

Besides Akonto, there is another common form of incidental cost billing in Switzerland: flat-rate rent. The fundamental difference lies in the billing and financial risk.

Incidental costs akonto

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

• You receive a detailed incidental cost statement

• You may receive additional payments or refunds

• Costs are transparent and traceable

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

Incidental costs flat rate

With flat-rate rent (also called "inclusive rent"), incidental costs are included in a fixed monthly amount. This means:

• No annual incidental cost statement

• No additional payments or refunds

• Predictable, constant rental costs

• The landlord bears the risk of cost increases

Which form is better?

Both billing methods have their advantages and disadvantages. With Akonto incidental costs, you benefit from transparency and may potentially receive money back if the actual costs are lower. However, you also bear the risk of additional payments if, for example, heating costs rise sharply in 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 forgo potential refunds. In addition, if costs increase significantly, the landlord may request a rent increase according to legal requirements, which is more common with flat-rate rent than with the Akonto arrangement.

Incidental cost billing: Rights and obligations

Swiss tenancy law regulates the rights and obligations regarding incidental cost billing in the Code of Obligations (OR). Even though many provisions apply to residential property, some principles also apply to commercial properties, unless otherwise agreed in the rental contract.

Landlord's obligations

The landlord is obliged to provide you with a transparent and traceable incidental cost statement. This should include the following points:

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

• Indication of the distribution key

• Calculation of your share

• Comparison of Akonto payments with actual costs

• Indication of additional payment or refund

The statement should be issued within a reasonable period after the end of the billing period – usually within a few months.

Tenant's rights

As a tenant, you have the right to examine the incidental cost statement and to request access to the receipts if there are any ambiguities. You can object in writing within 30 days of receiving the statement if you believe it is incorrect.

Should discrepancies arise, it is advisable to first seek discussion with the landlord. In many cases, misunderstandings can be clarified through additional explanation. If no agreement can be reached, you have access to the conciliation authority.

Adjustment of Akonto incidental costs

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

Typical incidental costs for commercial properties

For commercial properties, incidental costs can be more extensive than for residential properties. Typical items include:

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

• Cold water and wastewater: Consumption costs and basic fees

• Caretaker services and cleaning: Costs for maintenance of common areas, stairwells, parking lots

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

• Administration costs: In some cases, a share of administrative costs

• Snow removal and garden maintenance: Winter service and green area maintenance

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

• Lift costs: Maintenance and electricity for elevators

It is important that the rental contract clearly stipulates which incidental costs must be covered. For commercial properties, there is often more room for negotiation than for residential properties, and not all costs are automatically transferable to the tenant.

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

Incidental costs akonto means that you make a monthly advance payment for ongoing operating costs, which is later offset against the actual costs. Unlike flat-rate rent, with the Akonto arrangement, you receive an annual statement that transparently shows what the actual costs were. This offers you the chance for refunds, but also carries 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 arrangement is the better option. If, on the other hand, you prefer maximum planning security and want to avoid surprises from additional payments, flat-rate rent may be the right choice.

When renting a commercial property via maison.work, you should ensure that the rental contract clearly states which billing method will apply and which incidental costs must specifically be covered. A careful review of the rental contract and an open discussion with the landlord will help you avoid misunderstandings and find a fair solution for both parties.

This article serves for general information purposes only and does not replace individual legal advice. For legally complex questions or ambiguities in the rental contract, we recommend consulting a lawyer specializing in tenancy law or the competent conciliation authority.