Additional costs for commercial properties in Switzerland
Understanding additional costs for commercial leases: Find out which costs can be passed on, how they are calculated and how you can protect your rights as a tenant.
When renting commercial spaces in Switzerland, ancillary costs are a crucial factor alongside the net rent. They encompass additional expenses that often make up a significant portion of the total rental costs. A clear understanding and proper budgeting of these costs are essential for financial planning to avoid unexpected expenses. The gross rent, i.e., the actual amount to be paid, consists of the net rent and the ancillary costs.
This guide provides an overview of ancillary costs for commercial properties in Switzerland. It explains the legal foundations, which costs can be apportioned, how commercial ancillary costs are calculated and distributed, which factors influence their amount, and what rights tenants have.
Ancillary Costs for Commercial Properties
The Swiss Code of Obligations (CO), specifically Articles 257a and 257b, as well as the Ordinance on the Lease and Usufructuary Lease of Residential and Business Premises (VMWG), form the legal basis.
What is crucial: Ancillary costs only have to be paid by the tenant if this has been specifically and detailedly agreed upon in the lease agreement. General formulations are not sufficient. If costs are not explicitly listed, they are considered included in the net rent.
According to the law, ancillary costs are the actual expenses of the landlord for services connected with the use of the property. This includes typical operating costs such as heating, hot water, and public charges that arise from its usage. It is important to separate pure operating costs from costs accruing to the owner from possession (maintenance, repairs, general administration). The latter are covered by the net rent and may not be charged as ancillary costs.
Apportionable Ancillary Costs: What Can the Landlord Charge?
Only costs directly related to the use of the property and explicitly agreed upon in the contract may be billed as ancillary costs.
Typical permissible ancillary costs, provided they are contractually agreed upon, include heating and hot water costs. This encompasses fuels, operating electricity for facilities, chimney sweeping, service work, tank inspection, consumption measurement, and billing costs. Directly attributable administrative expenses are also apportionable. Periodic costs like boiler servicing can be charged proportionately on an annual basis. Water and sewage costs for actual consumption are equally apportionable, but not consumption-independent base fees or rainwater fees. Operating costs for common areas, such as general electricity, caretaking (for cleaning and simple maintenance work), stairwell cleaning, ongoing gardening, and snow removal can be billed. For elevator costs, operating electricity, emergency call fees, and maintenance subscriptions are often apportionable, whereas repairs are not. Basic TV fees are apportionable, installation costs are not. Regarding administrative costs, only the costs for preparing the ancillary cost statement (usually 2-3% of the net ancillary costs or according to effort) may be charged.
In contrast, typically impermissible costs must be borne by the landlord. These include repairs and maintenance, replacement purchases and investments, the amortization of facilities (with exceptions), general building insurance premiums, non-usage-dependent public charges (e.g., property tax), development fees, mortgage interest, and general administrative fees. For service subscriptions, it must be checked whether they contain pure maintenance (apportionable) or also repair components (non-apportionable).
The following table provides an overview (not exhaustive):
| Cost Category | Permissible Ancillary Costs | Impermissible Ancillary Costs (Typically) |
|---|---|---|
| Heating/Hot Water | Fuel/Energy, operating electricity, chimney sweep, burner service, tank inspection, boiler service (proportional), consumption measurement, heating insurance, administrative costs for heating/HW | Repairs, replacement purchases, amortization (except contracting/RCP), general building insurance |
| Water/Sewage | Cold water consumption, consumption-dependent sewage fees, water treatment chemicals | Non-consumption-dependent base fees, rainwater fees, connection fees |
| Caretaker/Cleaning/Surroundings | Wages for cleaning/minor maintenance/gardening, cleaning materials, general electricity, elevator electricity, elevator maintenance (service subscription), refuse fees, snow removal, gardening (ongoing) | Wages for repairs/administrative activities, purchase of equipment/tools, new plantings, tree felling, elevator repairs, disposal of bulky waste |
| TV/Communication | Cable network base fees | Connection fees, installation costs |
| Administration | Costs for preparing the ancillary cost statement (approx. 2-3% of AC or according to effort) | General administrative fees, costs for apartment handovers, rental efforts |
| Miscellaneous | Value added tax on third-party services and AC statement | Property taxes, building insurance, mortgage interest, repairs, investments, amortization |
How the Costs are Distributed
If ancillary costs cannot be directly allocated, they are divided using a distribution key. Common keys are by square meters (per sqm), by consumption (if meters are present, often the fairest method), by rental object (in equal parts), or by cubic meters. The key specified in the contract must be appropriate. Any change requires a formal contract adjustment. In mixed-use properties, care must be taken to ensure a fair key that considers different consumption levels (e.g., office vs. restaurant). In the event of vacancies, the landlord bears the proportional ancillary costs; there are specific regulations for heating costs.
Billing Methods: On Account (Akonto) vs. Flat Rate (Pauschal)
Payment on account (Akonto): Monthly advance payments, annual detailed settlement of the effective costs with additional payment or refund. This is the most common method, but carries the risk of back payments.
Flat rate payment (Pauschal): Fixed monthly amount, no annual settlement. Offers budget certainty, based on the average of the last three years. Tenants can still demand information and insight into receipts to verify the flat rate.
Average Ancillary Costs per m²
Reliable average values for commercial ancillary costs per sqm are hard to find because they vary significantly. Rough reference values from the residential sector (approx. CHF 30-40/m²/year) are only of limited relevance for commercial properties.
Influencing factors for commercial properties:
Type of business: Different energy, water, and waste requirements (office vs. production/restaurant).
Building standard and age: Energy efficiency (MINERGIE vs. old building).
Location: Regional price differences.
Service level: Scope of caretaking, cleaning, etc.
Lease agreement: Definition of apportionable costs.
Recommendation: Focus on calculating the ancillary costs for the specific property. Ask for previous statements or the basis of calculation for the flat rate, and inform yourself about the building's condition.
Your Rights as a Tenant: Transparency and Control
Tenancy law ensures you have important control options:
Right to a detailed annual statement (for Akonto): Clear, comprehensible, with total costs, distribution key, your share, and deduction of advance payments. In case of ambiguity, demand a more detailed breakdown.
Right to inspect receipts: Inspection of original invoices at the landlord's/administration's registered office. You may take notes/photos or make copies (at your own expense). This also applies to flat rates to verify the calculation basis.
Deadlines: No statutory deadline for objecting to the statement, but a prompt response is recommended. Statute of limitations for additional claims by the landlord: 5 years. Statute of limitations for reclaiming overpayments by the tenant: 1 year from knowledge, max. 10 years. Customary billing period for landlords: approx. 6 months after the end of the period.
Procedure in case of discrepancies: First, complain to the landlord in writing (registered mail). If this does not lead to a solution, the free conciliation authority can be contacted.
Checklist & Tips: Properly Regulating Ancillary Costs in the Commercial Lease
In commercial tenancy law, careful contract drafting is particularly important:
Precision: Every ancillary cost item must be explicitly and clearly listed in the contract.
Distribution key: Check whether it is clearly defined and fair (especially in mixed-use properties).
Billing method: Clarify (Akonto/Pauschal) and whether the on-account amount is realistic.
Impermissible costs: Ensure that no maintenance, repair, or investment costs are included.
Negotiation: Discuss the scope of costs, possible upper limits, and service levels.
Checklist for Tenants:
Before signing the contract: Examine the contract carefully, inquire with the landlord (expected amount, energy efficiency, old statements).
Budgeting: Realistically plan for ancillary costs, provide a buffer for additional payments (Akonto).
Ongoing control: Check the annual statement (comparison with the previous year, plausibility, key, advance payments); in case of ambiguities, demand insight into receipts.
Conclusion
Ancillary costs are a significant cost factor for commercial properties. A clear understanding of the rules and rights is essential. The key lies in a precise lease agreement. Carefully review the ancillary cost regulations, negotiate if necessary, and use your rights to transparency and insight into receipts. A proactive approach to ancillary costs enables solid budgeting and promotes a fair tenancy.