Property management in Zurich: why the term means something different here than internationally
In Switzerland «property management» often means two different professions. The difference decides who you are actually looking for.
What is property management?
Property management means running a property on behalf of its owner. In Switzerland the term splits into two professions: building management, which looks after long-term tenancies and costs around 4 to 5 per cent of rental income, and short-term letting management, which runs the guest operation and charges 18 to 30 per cent of revenue in Zurich.
Two professions, one word
A building manager looks after long-term tenancies: finding tenants, contracts, service-charge statements, upkeep, tradespeople. It charges around 4 to 5 per cent of rental income and has nothing to do with guests.
A short-term letting manager runs the guest operation: listing, pricing, communication, cleaning, tourist tax. It charges 18 to 30 per cent of revenue because it handles around 78 guest changeovers a year rather than one tenant change every few years.
The difference in rate looks large and is not: it describes two entirely different amounts of work. Comparing 5 per cent with 25 compares one tenant change with 78 arrivals.
| Building management | Short-term letting | |
|---|---|---|
| Remuneration | 4 to 5 % of rental income | 18 to 30 % of revenue |
| Changeovers a year | rare | around 78 arrivals |
| Furnishing required | no | yes, in full |
| Availability | office hours | around the clock |
| Cleaning | the tenant’s business | after every stay |
| Tourist tax and guest registration | does not arise | part of the job |
| Does alphakey operate this? | no | yes |
Which of the two you need
The question is decided by the use, not by the provider. If you want to let to one party for years, you need building management — and not us. If you want to let to guests by the day and week, you need the other one.
Where it gets mixed up: with condominium ownership there is additionally the management of the owners’ association under Art. 712q ff. CC. That is a third profession, concerns the building rather than your flat, and continues to exist even if you let short-term.
Frequently asked questions
- What does property management cost in Zurich?
- That depends which of the two professions is meant. Building management for long-term letting costs around 4 to 5 per cent of rental income. Management for short-term letting costs 18 to 30 per cent of revenue in Zurich; with us 18 per cent in the basic package and 25 for full service. The difference describes the amount of work: one tenant change against around 78 arrivals a year.
- Is property management the same as building management?
- In Switzerland not necessarily. «Liegenschaftsverwaltung» denotes looking after long-term tenancies and is an established profession with its own qualifications. «Property management» is also used for running short-term letting, for which there is no protected title. Anyone looking for a provider should therefore ask about the service and not about the label.
- Can the same firm do both?
- It is possible, but not usual. The two professions need different skills and different operations: one works office hours with contracts and tradespeople, the other evenings and weekends with guests and cleaning schedules. We do short-term letting only and do not broker long-term tenancies.
- With condominium ownership, do I need both?
- Management of the condominium owners’ association under Art. 712q ff. CC concerns the building — heating, façade, grounds, the association’s accounts — and exists regardless of what you do with your flat. It does not replace management of your letting, and is not replaced by it.
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