Repairs on a Montreux short-term rental rarely arrive as a single big bill. They arrive as a leaking mixer tap in July, a dishwasher that stops the week of the Jazz Festival and a balcony door that no longer closes. Owners who set aside a maintenance reserve and agree an approval process in advance fix these in a day; owners who do not lose bookings while they look for a plumber.
The reserve in brief
- Starting point
- Swiss lenders typically assume about 1% of the property value per year for maintenance when they test affordability[1]
- Short-term rental
- Turnover wears an apartment faster than a long-term tenancy, so treat 1% as a floor, not a ceiling
- Example
- A CHF 1,200,000 apartment: 1% is CHF 12,000 a year, or CHF 1,000 a month (illustrative arithmetic)
- Tax
- Federal tax allows either actual maintenance costs or a flat rate of 10% (building up to 10 years old) or 20% (older) of gross rental income; value-adding improvements are not deductible[2]
- Condominiums
- Common-area works are funded through the owners’ renewal fund, not your own reserve[3]
Short answer: budget roughly 1% of the apartment’s value per year for maintenance and repairs, pay it into a separate account each month, and agree in advance who may approve a repair and up to what amount. In a short-term rental, where every guest night is an inspection, lean towards the higher end.[1]
In this guide
How big should the reserve be?
The simplest anchor is the rule Swiss banks use when they test whether you can afford a property: about 1% of the property value per year for upkeep, alongside interest and amortisation.[1] It is a planning figure, not a law, and your lender may use a different number. For a rental that hosts a new guest every few nights, we suggest treating it as the minimum and reviewing it each year against what you actually spent.
On a CHF 1,200,000 apartment, that is CHF 12,000 a year. Spread over 150 booked nights it works out at CHF 80 a night — a useful number to compare with your nightly rate when you set prices (our running costs guide shows where this sits among the other costs).
Three kinds of cost
- Wear and small repairs. Mixer taps, grout, door handles, blinds, light bulbs. Frequent, cheap and usually fixed within a day.
- Appliances and fittings. Washing machine, dishwasher, oven, mattresses, sofa. Replace on a schedule rather than waiting for a failure; guests notice a tired mattress long before it breaks.
- Building and structure. Roof, facade, lifts, heating plant. In a condominium these belong to the owners’ community, not to you alone.[3]
Damage caused by a guest is a different category and is handled through the deposit or platform claim process; see our guide to security deposits and damage claims.
A repair process that protects bookings
- Inspect at every turnover. Cleaners photograph anything broken or missing and report it the same day (see cleaning and turnover operations).
- Pre-approve a limit. Agree a spending threshold, for example CHF 300, under which your manager or concierge may order a repair without calling you.
- Keep a vendor list. One plumber, one electrician and one appliance technician with phone numbers, so a leak at 20:00 does not become a search.
- Know the shut-offs. Label the main water valve and the fuse board and put the location in the digital guidebook.
- Log everything. Date, cost and photos; the log feeds your tax return and your owner statement.
Preventive checks
These are our working suggestions, not a regulatory list:
- Every turnover: taps and drains run clear, smoke detector present, no new marks or stains.
- Quarterly: descale kettle and coffee machine, clean the washing-machine filter, check seals around showers and windows.
- Annually: service heating and any ventilation, test balcony doors and blinds, review mattresses and linen, repaint scuffed walls.
If you are weighing a manager against doing this yourself, the management company guide explains what a mandate normally covers.
Condominiums and the renewal fund
If your apartment is part of a condominium (PPE), the community usually collects a renewal fund for shared parts, and the owners’ assembly decides on major works.[3] Read the last few years of minutes: a planned facade or lift renovation can mean a large special contribution that your reserve should anticipate. Our condominium guide covers the rules for short-term letting inside a PPE.
Tax treatment
For federal direct tax, owners of private property can generally deduct actual maintenance costs, or choose a flat-rate deduction of 10% of gross rental income if the building is up to ten years old and 20% if it is older. Improvements that add value, as opposed to restoring the existing condition, are not deductible in the same way.[2] Cantonal rules, and whether your letting counts as private asset management or a business activity, can change the picture, so confirm with a fiduciary; our tax and VAT guide sets out the wider framework, and the insurance guide covers water damage and liability.[4]
Want repairs handled without the phone calls?
RivieraHost coordinates inspections, vendors and repairs for Montreux owners on a flat 20% commission, so a broken tap does not cost you a booking.
Talk to usRelated reading: Running costs · Deposits & damage claims · Property readiness checklist
10+ years in hospitality. BBA Hospitality (Glion), MSc Tourism (FHGR), MSc Data Science (HSLU).
Frequently asked questions
How much should I budget for maintenance on a Montreux short-term rental?
A common planning figure is about 1% of the property value per year, which Swiss lenders also use in affordability tests. Because guests turn over frequently, treat it as a minimum and review it against actual spending each year.[1]
Should the maintenance reserve be a separate account?
Yes. Paying a fixed monthly amount into a separate account stops repairs from landing on your operating budget and makes it clear when you are under- or over-funding the reserve.[1]
Can I deduct maintenance costs from my taxes in Switzerland?
For federal direct tax, owners of private property can deduct actual maintenance costs or a flat rate of 10% (building up to ten years old) or 20% (older) of gross rental income, but not value-adding improvements. Cantonal rules and your tax status can differ, so confirm with a fiduciary.[2]
Who pays for repairs in a condominium?
Common parts such as the roof, facade and lifts are paid by the owners' community, usually through a renewal fund; repairs inside your own apartment are yours.[3]
Who should approve repairs while I am abroad?
Agree a spending limit in advance so your manager or concierge can order urgent repairs without waiting for you; anything above the limit comes to you with photos and a quote.[1]
Sources
- Swiss home-ownership guidance (HEV Schweiz, hev-schweiz.ch) and lender affordability calculations — about 1% of property value per year for maintenance; lenders’ assumptions vary, so ask yours — hev-schweiz.ch
- Federal Tax Administration (estv.admin.ch), ordinance on the deduction of costs of private immovable property for direct federal tax (SR 642.116.2): flat rate of 10% / 20% — estv.admin.ch
- Swiss Civil Code (fedlex.admin.ch), condominium ownership (articles 712a ff.); renewal-fund practice varies by community — fedlex.admin.ch
- Vaud cantonal tax administration (vd.ch/impots) — cantonal rules on property upkeep deductions — vd.ch