Landlords24. Februar 2026|

Rental deposit for landlords – what options are there?

Rental deposit from the landlord's perspective: bank deposit, rental deposit insurance or bank guarantee – which option offers the best security?

As a landlord, the rental deposit is your most important safeguard against damage and payment defaults. But which form of deposit offers you the best security with the least administrative effort? In this article, we present the various options and show you what to look out for.

The traditional bank deposit (rental deposit)

The bank deposit is the traditional form of rental deposit in Switzerland. The tenant opens a blocked account at a bank and deposits the security amount (for residential properties, a maximum of three months' rent). The account is in the tenant's name and is blocked by the bank in favour of the landlord.

Advantages for the landlord: established system, direct security through actual funds held in an account.
Disadvantages for the landlord: release requires the consent of both parties or a court decision. In the event of a dispute, the payout can take months or up to a year.

Rental deposit insurance (surety bond)

With rental deposit insurance, the tenant takes out an insurance policy that provides the landlord with a surety certificate as security. In the event of a claim, the insurer pays the justified amount directly to the landlord.

Advantages for the landlord: fast claims settlement without lengthy banking processes. Professional assessment of the compensation claim. With goCaution, landlords also benefit from a free landlord portal for managing all deposits.
Disadvantages for the landlord: the deposit amount is a guarantee, not deposited cash. The insurer verifies the legitimacy of the claim before paying.

The bank guarantee

The bank guarantee works similarly to rental deposit insurance: the bank guarantees the landlord payment up to the agreed deposit amount. This option is mainly used in commercial tenancies.

Advantages for the landlord: high security through a bank guarantee.
Disadvantages for the landlord: expensive for the tenant (fees and creditworthiness check required), which is why many tenants reject this option.

What landlords should consider regarding the rental deposit

Check the tenant's creditworthiness regardless of the chosen deposit form.
Do not accept cash payments – by law, the deposit must be paid into a blocked account.
Document the condition of the apartment at move-in and move-out with a detailed handover report.
Observe the deadlines: defects must be reported at the handover and claims must be asserted in court within one year.
Familiarise yourself with the lifespan table in order to correctly calculate legitimate claims.

Legal basis for landlords

Swiss tenancy law sets clear conditions for the rental deposit. As a landlord, you should be familiar with the most important provisions:

Maximum amount: for residential properties, the deposit may not exceed three months' gross rent. For commercial premises, there is no statutory upper limit – three to six months' rent is customary.
Blocked account obligation: the deposit must be deposited in a blocked account at a bank in the tenant's name. Paying it into the landlord's own account is not permitted.
Interest belongs to the tenant: any interest on the deposit account is due to the tenant.
Obligation to give notice of defects: defects must be reported immediately at the apartment handover. Hidden defects must be reported without delay upon discovery.
One-year deadline: claims from the tenancy must be asserted in court within one year of the end of the tenancy; otherwise, they lapse.

Damage claims: how landlords should proceed correctly

If damage is discovered at the apartment handover, the correct procedure is decisive:

Record all defects in detail in the handover report – with photographs and a precise description. Obtain cost estimates or invoices promptly. Communicate your claims to the tenant in writing and with specific amounts. Refer to the joint lifespan table for the correct calculation of the current value.

If the tenant does not respond or rejects the claims, you can request the bank to block the deposit. You then have one year to assert your claims in court.

Why more and more landlords accept rental deposit insurance

Rental deposit insurance is increasingly accepted by landlords in Switzerland – and for good reason: it broadens the pool of potential tenants (as the financial barrier is lower), speeds up the letting process and offers professional handling in the event of a claim.

goCaution offers landlords and property managers a free digital portal for the centralised management of all deposits. Claims are processed quickly and transparently. In addition, a claims mediator service is available to resolve disputes between tenant and landlord – before legal proceedings become necessary.

Landlords24. Februar 2026

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