Condominium ownership requires more scrutiny

For companies, condominium ownership is not just a matter of location, but also a shared risk. With the Federal Council’s message of May 13, 2026, renovation funds, quorum requirements, and clear rules for new construction are coming even more into focus.

When an SME purchases or owns a unit in a condominium, it is investing not only in space but also in the quality of an entire community. This is precisely where the often-underestimated risk lies: renovations, regulations, meeting minutes, and the status of the renovation fund can have a greater impact on the economic value of a medical practice, an office, or a rented unit than the fit-out behind one’s own door.

This is a timely issue. On May 13, 2026, the Federal Council adopted the dispatch on the revision of the Condominium Act. The proposed changes are targeted adjustments intended primarily to alleviate known practical problems. These include clearer rules for establishing condominium ownership in buildings not yet constructed, a right to sue for the creation of a renovation fund, and more precise tools for dealing with obstructive or non-paying owners.

Renovations Affect the Community
This is particularly relevant for owners of commercial properties, as major work on the roof, facade, building services, or heating systems cannot be decided on an individual basis. Many homeowners’ associations are facing investments in replacement heating systems, the building envelope, solar panels, or charging infrastructure. If the renovation fund lacks the necessary capital, special assessments often follow. For companies with multiple units or tight cash flow planning, this can quickly tip the balance of their investment calculations.

This also shifts the focus of due diligence. Before a purchase or a change of use, it’s not enough to simply look at location, price, and the mix of spaces. The decisive factors are the bylaws, house rules, minutes from recent years, maintenance plans, insurance policies, and any unresolved conflicts. Particularly with mixed-use properties, customer traffic, deliveries, signage, or short-term rentals may be prohibited internally, even though such uses would be permitted under public law.

Revision Enhances Practical Applicability
According to available information, the revision is not aimed at a systemic change but at addressing specific weaknesses. For new construction projects, the establishment of condominium ownership prior to the building’s completion is to be regulated more explicitly. This is important for developments involving off-plan sales, as discrepancies between the floor plan, building specifications, and actual construction regularly create potential for disputes. At the same time, long-term maintenance is taking center stage. The renovation fund is thus shifting even more clearly from a voluntarily maintained reserve to a strategic focus area.

For business owners, the implication is clear: owners’ meetings are not a formality but part of asset management. Anyone who uses condominium ownership as a business location, investment, or succession plan should define responsibilities internally, review decisions early on, and evaluate the management team’s ability to plan over multiple years and ensure high-quality implementation. In condominium ownership, the community is not a side issue—it is part of the product.