Rental deposits in Switzerland: amount, blocked account, repayment
The maximum amount of a rental deposit, where the money must be held, when you get it back – and why you should never pay before viewing the property.
Almost all landlords require security for the rent and any damage: the rental deposit, also known as a rent deposit. For flats, the main points are governed by the Swiss Code of Obligations (Art. 257e CO).
How high can the deposit be?
For residential premises, no more than three months’ rent. In practice, the gross rent applies, i.e. including the advance payment for ancillary costs. A flat with a gross rent of CHF 2'000 therefore requires a deposit of no more than CHF 6'000.
Where is the money held?
The deposit must be lodged with a bank in a blocked deposit account or a custody account in your name. A private account belonging to the landlord is not permitted. The interest belongs to you.
When do I get the deposit back?
After you move out, the bank releases the money if both parties agree or if there is a legally binding decision. If the landlord has not taken legal action against you within one year of the end of the tenancy, you can request repayment directly from the bank (Art. 257e para. 3 CO).
Alternative: rental deposit insurance
Instead of tying up money, you can take out rental deposit insurance. You pay an annual premium for it, and your money remains available. Please note: the premium is not refunded, and you must reimburse the insurer for any amounts it pays to the landlord.
Beware of fraud
Never transfer a deposit or “reservation fee” before you have viewed the flat and signed a tenancy agreement – and never to a private account or abroad. Reputable landlords do not ask for this.
Frequently asked questions
Can the landlord ask for more than three months’ rent?
No, for flats a maximum of three months’ rent is permitted. A higher demand is not allowed.
Who receives the interest on the rental deposit account?
The interest belongs to you as the tenant.
Can the landlord simply keep the deposit?
No. The bank only pays out with the consent of both parties or on the basis of a legally binding decision. If the landlord takes no action within one year of the end of the tenancy, you can reclaim the money yourself.
Is rental deposit insurance cheaper?
In the short term, yes, because no capital is tied up. Over several years, however, the premiums add up, and they are not refunded.