Private housing
Maximum three months' gross rent (including utilities). A higher demand from the landlord would be legally invalid. In practice, most landlords request between two and three months' rent.
Rental Deposit Guide
What is a rental deposit?
The rental deposit is a security that the tenant deposits in favour of the landlord. It serves as protection against outstanding claims after the end of the lease – particularly for unpaid rent, unsettled utilities or damage to the rented property beyond normal wear and tear.
Purpose of the rental deposit
The deposit serves the landlord as a guarantee for all claims arising from the lease. This mainly includes:
- Unpaid rent or utilities
- Repair costs for damage to the rented property beyond normal wear and tear
- Cleaning not carried out upon departure
Legal basis
The rental deposit is governed by the Swiss Code of Obligations under Art. 257e CO. The main legal provisions:
- Maximum of three months' gross rent for residential properties
- The deposit must be held in a separate account in the tenant's name
- The interest belongs to the tenant
- Release only with mutual agreement
How much is the rental deposit?
The amount of the rental deposit depends on the type of lease and is specified in the rental agreement.
Commercial premises
For commercial premises, there is no legal limit. The amount must however be reasonable. Six months' rent is often standard. The financial stability and creditworthiness of the business are decisive factors.
What types of rental deposit exist?
In Switzerland, tenants and landlords primarily have three common methods available.
Rental deposit account (cash deposit)
The tenant deposits the full deposit amount into a special blocked account at a bank. The money is locked until the end of the lease.
Tenant's money is locked
Rental deposit insurance (surety bond)
An insurance company guarantees the deposit on behalf of the tenant. Instead of a large one-off payment, the tenant pays an annual premium.
No capital locked up
Bank guarantee
A bank guarantees payment of the deposit amount to the landlord. The tenant pays an annual fee to the bank.
Annual fee to the bank
The rental deposit process
1
Before moving in: deposit the security
The rental deposit must usually be deposited before the keys are handed over. Depending on the method chosen, you either pay the amount into a blocked account or take out rental deposit insurance.
2
During the lease: the deposit remains in place
During the ongoing lease, the deposit remains unchanged. In the case of a bank deposit, the money is blocked. In the case of insurance, the annual premium is due.
3
After moving out: returning the property
During the handover of the property, the landlord prepares a report. Any defects are documented. The deposit serves as security for justified claims.
4
Release or utilisation
If the landlord has no claims, the deposit is released. In the case of a bank deposit, you get your money back. In the case of insurance, the surety bond ends. If claims exist, the landlord can claim the deposit in whole or in part.
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Frequently asked questions about the rental deposit
In Switzerland, the rental deposit for private housing is legally limited to a maximum of three months' gross rent (including utilities). A higher demand from the landlord would be invalid. For commercial premises, there is no legal limit – six months' rent is often standard.
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