Insurance, inventory and furnishings for let holiday apartments in condominium ownership

Anyone who has a holiday apartment in condominium ownership let operates between three parties: their own apartment, the owners’ association and the management company. Insurance, inventory and maintenance are distributed accordingly. This article sorts out what belongs where.

Three insurance policies, three responsibilities

Buildings and household contents insurance – a matter for the association. In condominium ownership, the association insures the building and, as a rule, the household contents of the units jointly. What is decisive when letting: the policy must expressly include use for letting. A policy for personal use only may have gaps in the event of a claim. This belongs on the agenda of the next owners’ meeting, if it has not already been clarified.

Liability insurance – a matter for the owners. As a condominium owner, you need your own liability insurance that covers third-party claims arising from ownership. It makes sense regardless of letting, and is indispensable when letting.

Business liability insurance – a matter for the management company. Damage caused by the management company’s employees is covered by its business liability insurance. Damage caused by guests, on the other hand, goes through the guest under the causer-pays principle – how this works is shown in our article on guest damage.

A furnishing concept instead of a personal touch

For tourist-managed apartments, the building permit requires that the units are not individualised. That is why the management company has a furnishing concept that defines furniture, fittings and standard – for our properties 4-star level with Wi-Fi – for all apartments of one type. Uniform variations per apartment type are possible, individual ones are not.

Personal belongings have no place in the let apartment. For this there are lockable storage places, which are defined when the contract is signed: usually a cupboard in the kitchen and bathroom and the cellar compartment, optionally a cupboard in the bedroom. What is kept there is not insured through the management company – valuables belong at home.

Inventory: the owners’ property

Furniture, lamps, rugs, curtains, appliances that are not fixed in place, crockery, small inventory, decoration and the basic linen supplies are procured by the owners and remain their property. On a sale, they pass with the apartment to the buyer, together with the management agreement.

Replacements are made according to the furnishing concept; procurement is organised by the management company so that the apartment remains uniform. Ongoing minor replacements – glasses, plates, cutlery – are made without consultation and shown in the statement.

The management renewal fund

Sofas, mattresses and kitchen appliances have a limited service life, which is shorter when let than with personal use. For larger rounds of replacement, managed developments keep a separate management renewal fund – separate from the association’s renewal fund for the building. Purchases up to an agreed authority limit are decided by the management company; above that, a simple majority of the owners decides. This keeps the standard the same across all apartments, and nobody has to provide money at short notice for a round of replacement.

House rules and the association

The management company is responsible for guests complying with the house rules and the association’s regulations – quiet hours, waste, parking. The owners work within the association to ensure that shared facilities are in perfect condition: entrance, stairwell, laundry room, surroundings. Both together determine how guests rate the building.

On a sale

The management agreement is tied to the apartment. On a sale it is transferred to the buyer, who in turn must pass it on. The apartment and parking space are transferred together. The management company must be informed early of an intended sale, so that confirmed bookings are taken over and the business continues seamlessly.

Frequently asked questions

Is the association’s household contents insurance enough for letting?

Only if it expressly includes use for letting. This should be clarified with the insurer.

May I bring in my own furniture?

Only within the furnishing concept. Individual furnishing contravenes the condition of the building permit.

Who pays for a new sofa?

In the case of guest damage, the person who caused it; in the case of wear and tear, the owners or the management renewal fund.

What happens to my inventory on a sale?

It passes with the apartment to the buyer, as does the management agreement.

Are my belongings in the owners’ cupboard insured?

Not through the management company. Valuables should not stay in the apartment.

More on management: [Simmental](/bewirtschaftung-simmental), [Saanenland](/bewirtschaftung-saanenland), [Adelboden-Kandersteg](/bewirtschaftung-adelboden-kandersteg).

*This article describes the provisions in management agreements of Picobello Reinigungen for properties in Lenk and does not replace insurance or legal advice.*