Things to know about Real Estate

Heating and ancillary cost contributions

In connection with the energy crisis, heating costs are also rising in Switzerland. When adjusting heating and ancillary cost amounts, the type of settlement agreed between tenant and landlord must be taken into account. A basic distinction is made between flat-rate service charges and payments on account. If the variant of payments on account has been agreed, the landlord is generally free to determine the amount of the monthly contribution on account. In practice, however, it should generally be sensible to set the contribution on account realistically in line with the actual costs to be expected in order to avoid large additional payments or repayments at the end of the settlement period.

Flat-rate service charges
If the landlord opts for the flat-rate service charge system, the flat rate must correspond to the average costs of the previous three years.

Adjustment of heating and ancillary cost contributions
If the landlord wishes to unilaterally change the monthly payments on account or flat-rate payments, he must notify the tenant of this using the official form at a contractually agreed termination date. If the landlord wishes to increase a lump sum, he must prove that the new lump sum was calculated on the basis of the average costs of the last three years, whereas in the case of the payment on account system, he is basically free to determine the new payment on account. Our real estate experts will be happy to answer any questions you may have.