Service charge statement and ancillary costs: drawing up a statement that holds
A service charge statement is only enforceable against the tenant if each item rests on a contractual basis, on actual costs and on a verifiable allocation. The starting point is not accounting, it is legal: without a specific agreement in the lease, ancillary costs are deemed to be included in the net rent and nothing may be charged after the fact (art. 257a para. 2 CO). This page is intended for the landlord who wants to charge and account for these costs in a defensible manner, from checking the clause to the itemised statement, item by item.
Updated 07.2026
The procedure in four steps
- 1Check that the charges are agreed in the lease
Before any calculation, check that the lease names the items you intend to pass on (heating, hot water, water and sewage, refuse collection, electricity for common areas, caretaking, lift, among others). Ancillary costs are borne by the tenant only if this has been specifically agreed (art. 257a para. 2 CO). A general clause along the lines of ancillary costs payable by the tenant is weak: each item must be named individually. An item not stipulated in the lease remains included in the net rent and cannot be charged, even if it was actually incurred.
- 2Gather the actual costs for the period, item by item
For the accounting period, gather the expenses actually incurred and supported by documents: energy invoices, maintenance contracts, meter readings, operating charges linked to use. Only actual costs enter the statement, with no mark-up or profit (art. 257b para. 1 CO). At this stage, set aside what falls to the landlord: extraordinary maintenance, major repairs, value-adding renovations, depreciation, interest on capital, general management, the costs of maintaining and repairing the leased property even routine ones, and the share of caretaking that goes beyond cleaning the common areas.
- 3Allocate using the key and draw up the itemised statement
Allocate the building's common costs using an objective and stable key: floor area in m2, volume, number of rooms, or individual meter readings for measurable consumption. The key must be appropriate to the item and understandable. Then draw up an itemised statement showing, for each heading, the building's total cost, the key applied, the dwelling's share, the advance payments already made and the balance.
- 4Send the statement, allow inspection, settle the balance
Send the statement to the tenant at least once a year (art. 4 para. 1 OBLF), within a reasonable time after the close of the accounting period or heating season. On request, allow the tenant to inspect the supporting documents (art. 257b para. 2 CO). Then settle the advance payments: the balance is invoiced where actual costs exceed them, and any overpayment is refunded in the opposite case. The time limit for paying the balance runs only from a proper and itemised statement, once inspection has been honoured.
1.Which costs the landlord may charge
Art. 257a para. 1 and 2 CO, art. 257b para. 1 CO, art. 256 and 259 COA cost may be passed on only if it meets two cumulative conditions: having been specifically agreed in the lease, and constituting a service connected with the use of the property within the meaning of art. 257b para. 1 CO. These are recurring operating expenses (heating, hot water, water and sewage, refuse collection, electricity for common areas, the costs of servicing and periodic maintenance of shared installations such as the lift or the boiler room, cleaning of common areas, charges linked to use), passed on at actual cost, with no mark-up.
The following remain the landlord's responsibility and may never appear in the statement, even with the tenant's agreement: the costs of maintaining and repairing the leased property, even routine ones, which fall under the landlord's obligation financed by the net rent (art. 256 and 259 CO), extraordinary maintenance and major repairs, value-adding renovations, depreciation, interest on capital, taxes on the property, general management of the building, and the share of caretaking that relates to heavy or value-adding work. The line falls between operating the property, which is permissible, and maintaining or improving its substance, which is not.
2.Advance payments or flat rate, and the annual settlement statement
Art. 4 para. 2 OBLF, art. 257a COThe lease organises the collection of charges under one of two systems, which are not mixed for the same item. With advance payments or provisions, the tenant pays periodic amounts on account, and the landlord draws up a settlement statement each year: the balance is invoiced or the overpayment refunded. This is the regime that reflects actual costs and gives the itemised statement its full meaning. The advance payment must nonetheless remain in proportion to the foreseeable actual costs: a clearly overstated provision may be challenged and reduced by the tenant before the conciliation authority, even if the annual statement subsequently settles the balance. Set it on the average of the known actual expenses.
The flat rate is a fixed amount, with no annual statement. Its legal counterpart is that it must correspond to the average of the actual expenses calculated over three years (art. 4 para. 2 OBLF). A flat rate clearly higher than actual costs is abusive and may be reduced. The flat rate binds the landlord both ways: it allows no catching up if costs exceed it, and never permits an additional invoice for a balance.
3.Itemised statement, allocation key and right of inspection
Art. 257b para. 2 CO, art. 4 OBLFThe tenant has the right to inspect the supporting documents (art. 257b para. 2 CO). This right underpins the requirement for an itemised statement, item by item: for each heading, the building's total cost, the key applied, the dwelling's share, the advance payments made and the balance. A single-line lump-sum statement does not satisfy the obligation and does not start the payment time limit.
In a multi-unit building, common costs are allocated using an objective and constant key: area, volume, number of rooms, or consumption read from meters. No key is imposed by law, but it must be appropriate to the item, explainable to the tenant and stable from one period to the next. A shifting or unexplained key invites challenge. It appears on the statement itself.
4.Heating and hot water: the regime of art. 5 OBLF
Art. 5 to 7 OBLFHeating and hot water preparation follow their own regime, with an exhaustive list of chargeable costs. Only the actual expenses directly linked to operating the installation are included: fuel and energy, service electricity for the burners and pumps, substitute energies, cleaning and chimney sweeping, periodic servicing and descaling, the reading and accounting of meters and their upkeep, the administrative costs of the statement.
What is off the list is not chargeable: replacing the boiler, a new installation and major repairs are investments borne by the landlord. Nor may the heating of vacant dwellings be passed on to the sitting tenants. Allocation is done using an appropriate key or, where they exist, individual meter readings.
What makes the statement contestable
An item not named individually in the lease is deemed to be included in the net rent and cannot be charged, even if it was actually incurred (art. 257a para. 2 CO). A catch-all clause is not enough. Before the conciliation authority, the disputed item is simply struck from the statement.
Maintenance and repairs of the leased property even routine ones, extraordinary maintenance, major repairs, value-adding renovations, depreciation, interest on capital and general management never enter the statement. Mixing an operating service and a value-adding intervention within the same item makes the whole item suspect and exposes it to reduction.
A lump-sum statement without an item-by-item breakdown does not trigger the obligation to pay the balance. Refusing or delaying inspection of the documents (art. 257b para. 2 CO) suspends payment: a landlord who claims a balance while closing off access to the supporting documents loses on both counts.
The flat rate must correspond to the average of the actual expenses calculated over three years (art. 4 para. 2 OBLF); set too high, it is abusive and reducible, and it permits no additional invoice. A clearly overstated advance provision is likewise open to challenge and reduction before the conciliation authority, independently of the annual settlement. Any mark-up, favourable rounding or non-actual cost added to the statement falls outside the scope of art. 257b CO.
Draw up an itemised service charge statement, building by building
imoz draws up the itemised service charge statement building by building from the actual costs you enter, with a configurable allocation key (area, volume, rooms or meters) and an item-by-item breakdown: total cost, the dwelling's share, advance payments deducted and the balance. You obtain a verifiable document, the one on which the right of inspection rests. imoz is a management tool: sorting the admissible items and the requirement for a lease clause are matters for your own judgement or that of your adviser.
Free, no credit card. Pricing per active lease.
Frequently asked questions
Can I charge costs that are not provided for in the lease?+
No. Ancillary costs are borne by the tenant only if they have been specifically agreed (art. 257a para. 2 CO). Failing a clause naming the item, it is deemed to be included in the net rent and cannot be charged after the fact. Passing on, during the lease, a cost until then included in the rent requires an amendment to the contract using the official form, with a corresponding reduction of the net rent.
Advance payment or flat rate: which system to choose?+
Advance payments or provisions require an annual statement that settles the balance or the overpayment, and they reflect actual costs; they must remain in proportion to the foreseeable actual costs, a clearly overstated provision being reducible before the conciliation authority. The flat rate is a fixed amount with no statement, but it must correspond to the average of the actual expenses calculated over three years (art. 4 para. 2 OBLF); it permits neither catching up nor a balance invoice. A given item falls under a single system, and the regime set out in the lease binds the landlord.
May the tenant inspect the invoices?+
Yes. On request, the landlord must allow inspection of the supporting documents: invoices, contracts, statements from the energy supplier and the basis of the allocation key (art. 257b para. 2 CO). This right underpins the requirement for an itemised statement. Refusing inspection suspends the obligation to pay the balance.
Which costs are admissible in a service charge statement?+
Only the actual expenses linked to the use of the property, passed on with no mark-up (art. 257b para. 1 CO): heating, hot water, water and sewage, refuse collection, electricity for common areas, the servicing and periodic maintenance of shared installations, operating charges, provided they are agreed in the lease. Excluded are the costs of maintaining and repairing the leased property, even routine ones, which remain the landlord's responsibility under the net rent (art. 256 and 259 CO), extraordinary maintenance, value-adding renovations, depreciation, interest and general management. Apart from heating and hot water (art. 5 OBLF), there is no exhaustive statutory list: each item must satisfy the two tests, being agreed in the lease and corresponding to an actual operating cost.
How are charges allocated in a building?+
Using an objective key, appropriate to the item and applied consistently: floor area in m2, volume, number of rooms, or individual meter readings for measurable consumption. No key is imposed by law, but it must be understandable and stable, and appear on the statement. For heating and hot water, cantonal energy law frequently requires individual metering-based accounting in the buildings concerned, to be checked according to the canton and the year of construction.
This page provides general information on Swiss tenancy law (art. 257a and 257b CO, OBLF) and does not constitute individual legal advice. Each situation, in particular the validity of a lease clause or whether a disputed item is admissible, is assessed case by case. For a specific question, consult a lawyer or the conciliation authority for residential tenancies.