La deposit de location in Switzerland

Amount and legal framework

Swiss law (art. 257e CO) limits the deposit to 3 months of net rent (excluding charges). In practice, almost all landlords require the maximum of 3 months. The deposit must be deposited in a rental guarantee account with a Swiss bank, in the name of the tenant. The lessor does not have the right to keep the deposit in a personal account or a management account.

The bank pays interest (currently very low, around 0.01%) on the blocked amount. The capital and interest belong to the tenant and can only be released with the agreement of both parties or by court decision.

Ouvrir un compte de garantie de rent

The rental guarantee account is a blocked bank account, specifically provided for this purpose. It is opened in the name of the tenant with a Swiss bank. The main banks (UBS, Credit Suisse, Raiffeisen, cantonal banks) offer this service, often without opening fees.

To open the account, you will need your identity document, the signed lease contract and the amount of the deposit to deposit. The opening time is 1 to 5 working days. The bank then issues a guarantee certificate which you give to the lessor.

• • Choose a bank offering rental guarantee accounts
• • Bring the signed lease, proof of identity and the amount of the deposit
• • Opening time: 1 to 5 working days
• • The bank certificate is given to the lessor
• • No opening fees in most banks

Alternatives: deposit insurance

If you do not want to tie up several thousand francs, surety insurance offers a bank guarantee in exchange for an annual premium. The main providers are SmartCaution, Firstcaution and Swisscaution.

The annual premium represents approximately 4 to 5% of the guaranteed amount and is not recoverable. The benefit is to conserve your liquidity for other setup costs. The downside is that over a stay of several years, the cumulative cost exceeds the amount of the deposit itself.

Recovery at departure

The deposit is released when the lessor confirms in writing to the bank that he has no claim. In the event of disagreement (damage, unpaid rent, insufficient cleaning), the lessor has one year to assert his rights in court. After this period, the bank automatically releases the funds to the tenant.

In practice, the process takes 1 to 3 months if everything is in order after the exit inventory. To speed up the procedure, make sure that the accommodation is perfectly clean, that all rents have been paid and that the inventory does not reveal any damage attributable to the tenant.

Your rights as a tenant

The lessor cannot withhold the deposit without legitimate reason documented during the exit inventory. Valid reasons include: damage to the property beyond normal wear and tear, unpaid rent, overdue charges or end of lease cleaning not carried out.

If you contest a deduction, you can contact the lease conciliation authority in your canton. This procedure is free and allows most disputes to be resolved quickly. Normal wear and tear (faded paint, worn carpet after several years) cannot be charged to the tenant.

Bank guarantee vs insurance: what to choose?

The choice depends on your financial situation and the expected length of your stay. If you have the necessary cash and plan a stay of more than 3 years, the bank guarantee is more economically advantageous because you recover the entire amount up front.

If you prefer to conserve your liquidity for other investments or installation costs (furniture, car, etc.), deposit insurance offers a pragmatic solution. We recommend that you calculate the estimated length of your stay before deciding.