PPE Charges Explained

What PPE charges cover

PPE service charges cover all costs associated with the common parts of the building — everything outside the individual apartments. This typically includes: building insurance (assurance bâtiment); cleaning of common areas (entrance, stairwells, lifts); lift maintenance and inspection; garden and outdoor area maintenance; building management fees (gérance); heating and hot water for common areas; and contributions to the renovation fund (fonds de rénovation).

For luxury buildings with additional amenities, charges also cover: concierge services; swimming pool maintenance; gym or wellness facility maintenance; underground car park maintenance; and any other shared facilities.

How charges are calculated

Each co-owner's share of the service charges is proportional to their share of the building (their quote-part). The quote-part is expressed as a fraction or percentage of the total building and is recorded in the PPE regulations and the land register. A larger apartment with a higher quote-part pays a proportionally higher share of the service charges.

The total annual service charge budget is set by the co-owners at the annual general meeting. The budget covers all anticipated costs for the year, including contributions to the renovation fund. If actual costs exceed the budget, co-owners may be asked to pay a supplementary charge at the end of the year.

The renovation fund

The renovation fund (fonds de rénovation) is a reserve fund maintained by the co-owners for major renovation works — roof replacement, facade renovation, lift replacement, window replacement and other significant capital expenditures. Swiss law requires PPE buildings to maintain a renovation fund, but does not specify a minimum balance.

A well-funded renovation fund is a positive indicator — it means that the building is financially prepared for major works without requiring special assessments. A depleted renovation fund is a warning sign — it may mean that co-owners will face significant special assessments in the near future. Buyers should review the renovation fund balance and the building's maintenance history before purchasing.

Reviewing charges before purchase

Before purchasing an apartment, buyers should review: the last 2–3 years of service charge accounts (to understand the level of charges and any trends); the current renovation fund balance; the minutes of recent annual general meetings (to identify any planned major works or disputes); and the current year's budget.

Buyers should also ask whether any special assessments are planned or anticipated. A special assessment (appel de fonds extraordinaire) is a one-off charge levied on co-owners to fund a major work that is not covered by the renovation fund. Special assessments can be significant — CHF 10,000 to CHF 50,000 or more per apartment for a major renovation.

Key points

• PPE charges cover: insurance, cleaning, lift, garden, management, renovation fund
• Each owner's share proportional to their quote-part (share of building)
• Budget set annually at general meeting; supplementary charges if costs exceed budget
• Renovation fund: well-funded is positive; depleted may mean upcoming special assessments
• Review 2–3 years of accounts, fund balance, meeting minutes before purchasing