Check statement of ancillary costs – it’s worth it!

The arrival of a bill for heating and ancillary costs usually means a host of questions for tenants. We have the most important answers and show you in six easy steps how you can check your statement of ancillary costs, identify any errors, and avoid inadmissible additional demands.

How do ancillary costs break down?

Ancillary costs are costs for services provided by the landlord or third parties that are connected with the use of the rental property (Art. 257a (1) Swiss Code of Obligations (SCO)). Only costs that have actually been incurred may be charged (Art. 257b (1) SCO). This means that the statement of ancillary costs cannot be a source of profit for the landlord.

Important: ancillary costs must only be paid if they are expressly and individually listed in the rental agreement (Art. 257a (2) SCO). In the absence of such an agreement, the ancillary costs are deemed to be included in the rent. Collective items such as “other operating costs” are not enough.

Costs and public charges associated with the property itself, on the other hand, are borne by the landlord (Art. 256b SCO). Consumption-based charges such as water or garbage can only be charged if this has been agreed in the rental agreement.

For the preparation of the statement of ancillary costs, the landlord may charge an administration fee, either based on actual expenditure or as a flat rate (Art. 4 (3) ORLOCP). The admissible amount is governed by cantonal law: the tenant association considers 2 to 3 percent of the total ancillary costs to be the upper limit, while some in theory and practice consider up to 5 percent to be admissible. If invoices are based on actual time spent, a higher amount is also possible, provided it is documented. However, the flat rate may only cover the cost of managing ancillary costs. The general management of the property, on the other hand, is the responsibility of the landlord.

A useful basis for checking statements of ancillary costs is the tenant association’s detailed list of admissible and inadmissible items (in German). It provides a good basis, but the details are contentious, particularly with regard to the rates for the management fee.

Why do I receive a statement of ancillary costs?

You will receive a statement of ancillary costs because various items are listed as ancillary costs in your rental agreement, which you must pay in addition to the net rent.

As a rule, a distinction is made between lump sum payments and payments on account.

• Lump sum payment: you pay a fixed amount. This covers ancillary costs, even if the actual costs are higher or lower.
• Payment on account: in your annual statement, you will receive a credit if the actual heating and ancillary costs are less than the amount paid in advance. If the actual costs are higher than your payment on account, you will have to make a back payment.

Below, we show you step-by-step how to check your statement of ancillary costs.

What do “operating costs” mean in the rental agreement?

Unclear terms such as “operating costs” are not permitted in a rental agreement; they must be specified in detail. A reference to general contractual conditions is also not permitted. For you as a tenant, it must be clear which ancillary costs you will have to pay in addition to the rent.

When do I have to make ancillary cost back payments?

If the actual heating and ancillary costs exceed the total payments made on account, you normally have to make a back payment.

If your total payments on account exceed the actual costs, you will receive a refund from your landlord – or the corresponding amount will be credited to your next annual statement. Before you transfer the amount, it’s worth checking the statement of ancillary costs.

You won't receive a statement if your heating and ancillary costs are already included in your rent or if you settle these costs by way of a lump sum payment.

In general, it’s advisable to agree a sufficiently high payment on account when concluding the rental agreement. In this way, you can avoid having to make substantial back payments.

How can I contest my statement of ancillary costs?

If you’ve checked your statement and discovered an error, the best thing to do is as follows:

• Ask to speak to your landlord: contact your landlord first and mention the mistake.
• Ask for it to be corrected: then ask for the correction in writing, ideally by registered mail.
• Involve the mediation authority: if no agreement can be reached, you can contest the statement with the arbitration office.

Time limits and statute of limitations

There is no legal deadline for disputing the statement. However, the landlord’s entitlement to payment of ancillary costs lapses after five years – calculated from the end of the billing period concerned or from the date when you move out of the apartment. Conversely, tenants can reclaim any overpaid ancillary costs. Depending on the type of claim for recovery, different limitation periods apply: three years from the date of knowledge of the claim or ten years from the date of its creation.

If the landlord refuses to allow inspection of the documents, then any subsequent claim for an agreed payment on account will not be settled. Payment is only required if the claim is duly substantiated and documented.

Costs of arbitration proceedings

As a rule, there are no court fees for arbitration proceedings in rental matters. Legal expenses are not awarded to the opposing party either (Art. 113 Swiss Civil Procedure Code (CPC)). You pay your own expenses, such as for legal representation. However, costs can be imposed in the case of malicious prosecution (Art. 115 CPC).

Important: you must appear in person. If you’re unsure, have your statement of ancillary costs checked by an expert in tenancy law.

Even better: if you take out tenant legal protection early on, you’ll be on the safe side. It covers lawyers’ and court fees and offers an assessment in advance of whether it’s worth contesting. Only those who take out coverage before a dispute arises can be insured.

Frequently asked questions about “Check statement of ancillary costs”