Checking service charges: what the landlord may bill

You owe service charges only if they are specifically agreed in the lease (Art. 257a para. 2 CO). Specifically agreed means every item is named individually: heating, hot water, caretaking, electricity for common areas. Blanket wording such as 'service charges per statement' or 'customary service charges' is not enough according to the Federal Supreme Court. Items not named count as included in the net rent.

Permitted, if listed in the lease:

• Heating and hot water: fuel or district heating, electricity for the system, servicing and cleaning, chimney sweep, the cost of metering consumption and preparing the statement (Art. 5 VMWG).
• Operating costs: caretaking for routine upkeep, stairwell cleaning, electricity for common areas, lift servicing, garden maintenance, water and sewage, basic refuse fees, basic TV or internet connection.

Never billable, even if the lease said so:

• Repairs and replacements, for example a new boiler or a lift overhaul (Art. 6 VMWG).
• Building maintenance such as painting or the facade.
• Building insurance, property taxes, mortgage interest, depreciation.
• The property manager's fee, apart from the share for preparing the service charge statement itself.

• On account: you pay a monthly advance and the landlord prepares a statement at least once a year (Art. 4 para. 1 VMWG). The statement results in an additional payment or a refund.
• Flat rate: a fixed amount without a statement. It has to be based on the average of the last three years (Art. 4 para. 2 VMWG). No additional claims are possible.
• Included: if the lease says 'service charges included', you owe nothing on top.

If the on-account payments are set clearly too low, the landlord has to point this out when the lease is signed. If that does not happen and the additional payment is massively higher than the advances, the statement may be contestable. Rough benchmarks for heating and hot water per square metre of living space and year: heat pump 10 to 16 francs, gas 14 to 22 francs, oil 16 to 24 francs, district heating 15 to 20 francs.

1. 1

   Compare lease and statement

   Strike out every item that is not in the lease.

2. 2

   Check the allocation key

   By floor area, number of rooms or metered consumption. Vacant flats are the landlord's own cost; their share may not be passed on to the other tenants.

3. 3

   Inspect the receipts

   You have the right to inspect the original receipts (Art. 257b para. 2 CO, Art. 8 VMWG). Ask the landlord or the property manager; copies may be handed out against a contribution to the cost. Until you have been able to see the receipts, you do not have to make the additional payment.

4. 4

   Compare with the previous year

   Jumps of more than 20 percent without an obvious reason such as a cold winter or higher energy prices need an explanation.

5. 5

   Dispute in writing

   Name the items you contest and the amount you accept. Pay the undisputed part to avoid falling into arrears.

6. 6

   Conciliation authority

   If the landlord sticks to the claim, file a request. The procedure is free of charge.

There is no statutory deadline for objecting to the statement. React within 30 days anyway so the landlord cannot assume acceptance. The landlord's claims become time-barred five years after they fall due (Art. 128 CO). You can reclaim overpaid service charges even after paying the statement; just do not wait years.