Checking your ancillary costs statement: 8 things to look at

1. Is the item in your lease?

The most important principle first: you only have to pay ancillary costs if you have specifically agreed them with the landlord (Art. 257a para. 2 CO). Each item must be listed in concrete terms in the lease or in an annex. A phrase such as ‘allgemeine Nebenkosten’ (general ancillary costs) is not enough.

If an item is not in the lease, it counts as included in the rent. Typical examples are garden maintenance, lift servicing or a cable TV connection that appear on the statement but not in the lease.

Tip Put the lease and the statement side by side and tick off every item that appears in the lease. Whatever is left is your first candidate for an objection.

2. Repairs and replacements do not belong here

Ancillary costs pay for services connected with the use of the flat, such as heating, hot water or caretaking (Art. 257b para. 1 CO). Repairs and maintenance of the building are not part of them; they are covered by the rent.

For heating and hot water, the tenancy ordinance says so explicitly: repairing or replacing the installations, and interest and depreciation on them, may not be charged as ancillary costs (Art. 6 VMWG). So a new heating pump or a new boiler has no place on your ancillary costs statement.

3. Actual costs only

Only the landlord’s actual expenses may be charged (Art. 257b para. 1 CO). Mark-ups and estimates without a basis are not allowed.

For preparing the statement, the property management may charge a fee, either according to the work involved or within the usual rates (Art. 4 para. 3 VMWG). Depending on cantonal practice, it is around 4 per cent of the ancillary costs or slightly more. A noticeably higher rate is worth querying.

4. Heating and hot water in detail

Heating is usually the largest item. Under Art. 5 VMWG, chargeable costs include:

• the fuel and energy consumed
• electricity for burners and pumps
• cleaning of the heating system and the chimney
• periodic servicing of the system and descaling of the hot water system
• metering of consumption and the billing service
• maintenance and the administrative work for running the heating
• insurance premiums that relate solely to the heating

The heating costs of vacant flats are, in principle, borne by the landlord (Art. 7 VMWG). If a flat in the building stood empty for some time, this should be reflected in the allocation.

5. Is the allocation key right?

The total costs are divided among the flats using an allocation key, for example by floor area, volume or measured consumption. The key must be transparent and appropriate. Check whether your share in per cent or square metres is correct and whether it has changed since last year. A comparison with your neighbours tells you little on its own.

If the landlord wants to change the key to your disadvantage, this must be notified on the official form, like a rent increase (Art. 269d para. 3 CO).

6. Payments on account and billing period

A landlord who collects ancillary costs through payments on account must draw up a statement at least once a year (Art. 4 para. 1 VMWG). Check that the period follows on from the last statement without a gap and that all your payments on account have been credited, including the last month’s.

The landlord cannot simply introduce new ancillary costs. This requires notification on the official form (Art. 269d para. 3 CO).

7. Calculation errors

It sounds trivial, but it happens: totals that don’t add up, amounts copied across wrongly, or percentages that don’t match the total. Work out the total and your share yourself, and compare with last year’s statement. New items and big jumps will stand out straight away.

8. A flat rate instead of a statement?

Some leases provide for a flat rate (Pauschale). In that case there is no annual statement and no refund. However, the flat rate must be based on average figures over three years (Art. 4 para. 2 VMWG). If it seems too high, you are entitled to ask what it is based on.

Inspecting the receipts: your right

The landlord must let you inspect the receipts on request (Art. 257b para. 2 CO). For heating costs, you may see the original documents and ask for the opening and closing stock of heating fuel (Art. 8 para. 2 VMWG).

The inspection usually takes place at the property management’s office; you may take photos or make copies at your own expense. You are not entitled to have the documents sent to you, but many property managers will email copies on request.

How long do you have to object?

Many leases require objections within 30 days. This deadline is contractual, not statutory. You can still question items after it has passed.

If you have paid too much, reclaiming it is generally governed by the rules on unjust enrichment. Such a claim becomes time-barred three years after you learned of it, and in any case ten years after it arose (Art. 67 CO). Other time limits may apply depending on the situation; get advice on your individual case.

Conversely, according to the prevailing legal view, the landlord’s claims for additional payments become time-barred five years after the end of the billing period.

How to proceed

1. Lay the lease, the statement and last year’s statement side by side and check every item.
2. Object to unclear items in writing, ideally by registered post. Name the items, ask to inspect the receipts, set a reasonable deadline and ask for reminders to be suspended for the disputed amount.
3. Pay the undisputed part so that you are not in default.
4. If you cannot reach an agreement, you can apply to the conciliation authority for tenancy matters (Schlichtungsbehörde für Mietsachen). In tenancy matters, conciliation proceedings are free of court costs (Art. 113 para. 2 CPC).