What does a property management company do? Tasks, costs and how to choose
A property management company relieves owners of the day-to-day care of their property. This guide explains the main tasks for rental properties and in condominium ownership (Stockwerkeigentum) and shows what to look for when choosing a provider.
Tasks for rental properties
For let residential and commercial properties, the management company typically takes on the following, depending on the contract:
- Letting: advertising, viewings, checking applications and concluding tenancy agreements
- Rent collection: monitoring incoming payments and handling reminders
- Ancillary costs statement: preparing the annual statement for tenants
- Maintenance: organising repairs, caretaking and maintenance work
- Communication: point of contact for tenants, for example when defects occur
- Accounting and reporting: property accounts and regular reports to the owners
Regarding ancillary costs, the Swiss Code of Obligations states that tenants only have to pay them if this has been specifically agreed (Art. 257a CO). If ancillary costs are charged as advance payments, a statement is usually issued once a year; tenants may ask to inspect the receipts (Art. 257b CO).
Tasks in condominium ownership
Communities of condominium owners can appoint an administrator (Art. 712q Swiss Civil Code, CC). The statutory duties include implementing the resolutions of the owners’ meeting and handling the joint administration (Art. 712s CC). In practice, this typically includes:
- Preparing and running the owners’ meeting
- Preparing the annual accounts and the budget
- Managing the renewal fund
- Organising maintenance and renovation of the common parts
What does property management cost?
The fee is set out in the management agreement – often as a percentage of rental income or as a flat rate per unit. What matters is which services are included in the basic fee and which are charged separately, such as supervising major renovations or re-lettings. Always compare offers based on the specific scope of services.
Checklist for choosing a provider
- Experience with your type of property: rental property, condominium ownership or commercial property?
- Availability: how quickly does the company respond to enquiries and emergencies?
- Transparent contract: services, fee, additional costs, duration and termination clearly set out
- Reporting: how often and in what form will you receive statements and reports?
- Regional presence: does the company know the local market and local tradespeople?
- References: ask about comparable mandates.
Find property management companies on SwissImmoMap
In the directory of property management companies you will find providers all over Switzerland, filterable by canton, location and language.
