Quick answer: As a condominium owner, you own a share of the building with the right to use your apartment exclusively. You have co-determination rights but must pay monthly contributions and comply with the regulations.
The first owners' assembly -- and suddenly things get complicated
You bought your condominium. Everything is wonderful. Then the invitation to the condominium owners' assembly arrives. The agenda includes the renovation fund, the heating system renovation, and a neighbor who refuses to give up their Airbnb. Welcome to the world of condominium ownership.
Do not worry: if you know the basic rules, you are well prepared.
What exactly is condominium ownership?
In condominium ownership, you own a share (value quota) of the entire property. In addition, you have the exclusive right to use your apartment. You are thus a co-owner of the building and the sole user of your unit.
In Switzerland, around 12% of all apartments are condominiums. The trend is rising.
Who decides what happens in the building?
All owners form the condominium owners' association. It has three key elements:
- Owners' assembly -- The supreme body. This is where votes are taken on budget, renovations, and regulations.
- Management -- Can be handled by an owner or a professional management company.
- Renovation fund -- Mandatory contributions for future building renovations.
What rights do I have as an owner?
You have more freedoms than you might think:
- Exclusive use right -- You can freely use, renovate (within the regulations), and rent out your apartment.
- Co-determination -- You have voting rights at the assembly. Your voting weight corresponds to your value quota.
- Right of inspection -- You may inspect all documents of the association.
- Freedom to sell -- You can sell your apartment at any time.
What obligations do I have?
Freedom comes at a price. You need to know these obligations:
- Monthly contributions -- For heating, staircase, elevator, insurance, and management.
- Renovation fund -- Regular contributions. Typically 0.5 to 1% of the building insurance value per year.
- Comply with the regulations -- The use and management regulations are binding for everyone.
- Consideration for others -- No excessive disturbance of neighbors.
Why is the renovation fund so important?
The renovation fund is the community's savings account. It finances major renovations: roof, facade, heating, elevator. And it is one of the most common sources of conflict.
Three typical problems:
- Contributions too low -- If there is not enough money, all owners must make high special contributions. That hurts.
- Disputes over use -- What can the fund be used for? This regularly causes discussions.
- Recommended level -- Experts recommend at least 1% of the building insurance value per year.
What are the most common conflicts?
Noise and Airbnb
An owner rents out their apartment via Airbnb. Neighbors complain about constantly changing guests and noise. Check the regulations. Many regulations restrict or completely prohibit short-term rentals.
Renovation backlog
The majority wants to save money and postpones the roof renovation. The minority fears a loss in value. Necessary maintenance work cannot be postponed indefinitely. In extreme cases, a court can order the work to be carried out.
Disputes over costs
The ground-floor owner does not want to contribute to the elevator repair. Cost allocation follows the regulations and the value quotas. Special arrangements are possible but require unanimity.
Structural changes
An owner wants to mount an air conditioning unit on the facade. Changes to communal parts require the approval of the assembly. For luxury measures, a qualified majority applies.
What should I check before buying?
Five points you should definitely examine:
- Read the regulations -- Study the use and management regulations before buying. Everything you need to know is in there.
- Check the renovation fund -- How high are the reserves? Are major renovations planned?
- Review the minutes -- The minutes of recent assemblies reveal whether there are conflicts.
- Understand the value quota -- Your value quota determines your cost share and voting rights.
- Evaluate the management -- Professional management is worth its weight in gold. Ask other owners if they are satisfied.
Expert tip from Jessica: Before buying, be sure to examine the renovation fund. If reserves are low and the roof is old, you will soon face high special contributions. That can quickly cost CHF 20'000 or more.
Conclusion
Condominium ownership offers a great deal of freedom but also requires willingness to compromise. Those who know the rules and actively participate benefit the most. Planning a purchase? Then also read our article Buying a house or apartment in Eastern Switzerland. At Rüttimann Vision, we advise you on buying, selling, and all questions related to condominium ownership in Eastern Switzerland.