Understanding condominium charges: calculation, allocation and how they work

In a condominium building, certain expenses must be borne collectively by all owners. Maintenance of common areas, electricity for hallways, building insurance or management fees: all of these expenses are grouped under the term condominium charges. They make it possible to ensure the building operates properly and to keep shared facilities in good condition.

For many co-owners, however, the calculation method remains difficult to understand. Why do two apartments in the same building not pay the same amount? How are annual expenses set? And according to which criteria are the charges allocated among the different units?

In this article, we will explain the definition of condominium charges, how they are calculated and the principles governing their allocation among co-owners, so that you can better understand how they are determined in practice.

What are condominium charges?

Condominium charges refer to all expenses necessary for the operation, maintenance and management of a building shared by several owners. They notably cover costs related to common areas, shared facilities and the administration of the condominium.

In practice, these expenses may be used, for example, to fund stairwell cleaning, hallway electricity, lift maintenance or the building insurance policy.

In Switzerland, these costs fall within the framework of condominium ownership (PPE), a form of ownership defined by the Swiss Civil Code (Art. 712a et seq.).

The management of these expenses is generally entrusted to a PPE administrator or property manager. This person prepares the condominium accounts and organises collective decisions relating to the management of the building.

Co-owners meet at the general assembly to vote on the expenses needed for the upkeep of the building and the operation of shared facilities. This principle of collective management is provided for by the rules governing condominium ownership. For those wishing to become homeowners in Switzerland, understanding this mechanism of collective management is essential before any PPE purchase.

Condominium charges therefore play a central role in the management of a building. They make it possible to ensure regular maintenance of common areas, fund collective services and anticipate certain major expenses linked to preserving the building.

The impact of charges on your real estate project

Before committing to the purchase of a condominium property, it is essential to factor charges into your overall financial planning. Whether you are looking to buy an apartment in Lausanne, in Geneva or elsewhere in Switzerland, condominium charges can vary considerably from one building to another. In some well-maintained PPE developments, they can reach 3 to 5 francs per square metre per month, amounting to several thousand francs per year for an average-sized apartment. This recurring expense absolutely needs to be included in your budget for buying a house, just like your mortgage payments. To assess your overall financial affordability accurately, do not hesitate to consult a mortgage broker who will review all anticipated costs with you.

The different types of condominium charges

In a condominium, not all expenses are allocated in the same way among owners. Depending on their nature and usefulness, they are classified into several categories. This distinction makes it possible to determine more precisely who must contribute to each expense and in what proportion.

Two broad categories of charges are generally distinguished: general charges and charges linked to certain specific facilities or services.

General charges

General charges correspond to the expenses necessary for the preservation and maintenance of the building as a whole. They concern all co-owners because they contribute to keeping common areas in good condition and to the overall management of the building.

The most common general charges include, for example:

• electricity for hallways and stairwells
• building insurance
• management fees charged by the administrator or syndic
• minor repairs in common areas

These expenses benefit all co-owners, even if certain facilities are not used in the same way by everyone. That is why they are generally allocated according to the ownership share held by each unit in the condominium.

As a result, a larger apartment or one holding a greater share in the building will bear a higher contribution to general charges.

Charges linked to certain facilities or services

Other expenses concern only certain shared facilities present in the building. In that case, the allocation takes into account the actual usefulness of those facilities for each unit.

This is notably the case for installations such as:

• the lift
• central heating
• certain shared technical installations
• shared parking areas or garages

For example, co-owners whose home is on the ground floor may not contribute to lift maintenance costs if the lift is of no use to them. By contrast, apartments on higher floors may bear a larger share of these expenses. The way co-owners participate financially is defined in the PPE regulations.

How is the amount of condominium charges calculated?

The amount of condominium charges is not set arbitrarily. It mainly depends on the expenses required for the operation of the building and on the share that each dwelling represents within the condominium as a whole. Several factors therefore come into play in determining each co-owner’s contribution.

The condominium budget forecast

Each year, a budget is prepared in order to anticipate the building’s current expenses. This budget forecast makes it possible to estimate the operating cost of the condominium for the coming year and is presented to co-owners at the general assembly. Once approved, it serves as the basis for determining the amount of charges to be paid by each owner.

In certain situations, exceptional expenses may also be decided, for example to finance major works such as renovating the façade or refurbishing the roof. These expenses are then subject to a specific vote. Such large-scale works may require a renovation mortgage taken out collectively by the condominium.

Each unit’s ownership share in the building

The amount of charges also depends on the share that each dwelling represents in the condominium. This share is generally expressed in thousandths or units and corresponds to each unit’s share in the building as a whole.

The higher a unit’s ownership share, the greater its contribution to general charges will be. This allocation takes several criteria into account, including:

• the surface area of the dwelling
• its location within the building
• the unit’s relative value

This information appears in the condominium regulations, which specify for each apartment the share it holds in common charges.

Calls for funds

Once the budget has been adopted and the allocation defined, co-owners must pay their contribution through calls for funds, in addition to the capital already present and available in the renovation fund. In many condominiums, these payments are made several times a year so that expenses can be spread over the year.

The amount paid corresponds to an advance on the estimated charges. At the end of the financial year, a statement makes it possible to compare the expenses actually incurred with the sums already paid. If expenses were higher than expected, an additional amount may be requested from co-owners. Conversely, any overpayment may be carried forward or refunded.

Concrete example of how condominium charges are calculated

Let us take a simple example to illustrate how it works.

Imagine a condominium whose annual budget amounts to 40’000 francs to cover the building’s current expenses. One apartment holds an ownership share of 100 thousandths out of a total of 1,000 thousandths.

The annual contribution for this dwelling will therefore be calculated as follows:

40’000 × 100 / 1’000 = 4’000 francs in charges per year

If payments are spread over four calls for funds during the year, the co-owner will have to pay 1’000 francs per quarter. To factor these charges into your overall financial planning, use our mortgage calculator, which takes all your monthly payments into account.

Comparison of charges by region in Switzerland

Condominium charges vary significantly from one canton to another, depending on the age of the housing stock, the level of services and local management practices. Here is an estimate of the ranges observed for a standard apartment:

Canton	CHF/m²/month	CHF/year (80 m²)	Specific factors
Geneva	3.5 – 5.5	3’360 – 5’280	Older buildings, high charges, premium services
Vaud (Lausanne)	3.0 – 4.5	2’880 – 4’320	Varies depending on the age of the PPE
Zurich	2.8 – 4.0	2’688 – 3’840	Standardised market, rigorous management
Valais	2.0 – 3.5	1’920 – 3’360	Second homes, seasonal management
Bern	2.5 – 3.8	2’400 – 3’648	Balanced quality/cost ratio, recent buildings

Note: these ranges are indicative and based on market observations. Actual charges depend on each PPE, its age, its facilities and the policy of its administrator.

Practical cases: properly factoring charges into your decision

Case 1 – The buyer who underestimates charges

Two apartments for sale in the same neighbourhood. The second seems more expensive in terms of purchase price, but its charges are low. The first is listed at a lower price, but its high charges radically change the equation over 20 years:

	Apartment A	Apartment B
Purchase price	780’000 CHF	800’000 CHF
Charges/month	650 CHF	300 CHF
Charges/20 years	156’000 CHF	72’000 CHF
Actual total cost	936’000 CHF	872’000 CHF

Conclusion: apartment B is in fact 64’000 CHF less expensive over 20 years, despite a purchase price that is 20’000 CHF higher. Charges make all the difference. This is exactly the type of analysis we recommend in our property buying advice: always think in terms of total cost of ownership, not just purchase price.

Case 2 – The landlord owner and recoverable charges

When a dwelling is rented out, the owner remains responsible for paying the charges to the condominium. However, part of these expenses can be recovered from the tenant. In Switzerland, recoverable charges generally include:

• maintenance and cleaning of common areas
• water used in common spaces
• expenses related to central heating
• electricity costs for common areas

On the other hand, management fees, provisions for major works and certain insurance premiums remain exclusively payable by the owner. These non-recoverable charges directly affect rental profitability and must be factored into your rental yield calculation.

Case 3 – Exceptional works and their impact

A PPE votes for roof refurbishment with a total cost of 400’000 CHF. An owner holding 80 thousandths out of 1’000 will have to contribute as follows:

400’000 × 80 / 1’000 = 32’000 CHF — payable in one go or in instalments according to the arrangements voted on at the assembly.

If the PPE renovation fund is insufficient, co-owners may have to vote on an exceptional call for funds. In some cases, collective financing through a construction/renovation mortgage may be considered. That is why it is essential to review the condition of the renovation fund before any PPE purchase.

How are charges allocated among co-owners?

Allocation according to each unit’s ownership share

Most condominium charges are allocated according to the ownership share held by each unit in the building. This share is generally expressed in thousandths or units and represents each dwelling’s share of ownership in the condominium as a whole.

The larger an apartment’s share in the building, the higher its contribution to general charges will be. This logic is based on the idea that a larger dwelling or one with a higher relative value contributes more to common expenses.

For example, an apartment holding 150 thousandths in a condominium will contribute more to general charges than a studio representing 50 thousandths.

The role of the condominium regulations

The methods for allocating charges are always defined in the condominium regulations. This document notably specifies:

• the ownership share assigned to each unit
• the different categories of charges
• the allocation rules applicable to shared facilities

When buying a condominium property, it is therefore important to review these regulations in order to understand the share of charges associated with the dwelling. This step is an integral part of the budget for buying a house, because condominium charges can amount to several hundred francs per month. In some cases, these rules may be modified, but such a decision generally requires a vote at the co-owners’ assembly. A mortgage broker specialising in PPE can help you prepare your file.

Who has to pay condominium charges?

In a condominium, charges are in principle owed by the owner of the unit, who remains legally responsible for payment to the condominium. The situation may nevertheless vary depending on whether the owner occupies the dwelling personally or rents it out.

The case of the owner-occupier

When an owner lives in their apartment themselves, they must pay all charges related to the condominium. This includes both current expenses and any charges linked to works decided by the co-owners’ assembly.

The case of the landlord owner

When a dwelling is rented out, the owner remains responsible for paying the charges to the condominium. However, they can recover part of these expenses from the tenant.

In practice, the owner pays the charges to the condominium and then invoices the tenant for the so-called recoverable charges, generally in the form of a flat fee or a monthly provision.

By contrast, certain expenses always remain payable by the owner. This is an important point to consider when calculating rental yield, because non-recoverable charges directly affect the profitability of your investment.

Can condominium charges be challenged?

It may happen that some co-owners question the amount of the charges or the nature of certain expenses. This situation may arise in particular when reviewing the file to finance a property or obtain a mortgage renewal, when the bank asks for clarification regarding condominium charges.

Co-owners do in fact have a right of access to the documents relating to the management of the building, notably the accounts and supporting documents for the expenses.

At the co-owners’ assembly, everyone may ask questions about the expenses incurred or the contracts entered into for the management of the building.

If a co-owner believes that certain charges are not justified or have been allocated incorrectly, they may request clarification from the condominium administrator or submit the matter to the co-owners’ assembly.

In certain more complex situations, legal action may also be considered in order to challenge a condominium decision or the allocation of certain charges. However, such steps generally remain exceptional and arise when disputes cannot be resolved amicably.