Settling the rent deposit after move-out
How to settle the rent deposit after move-out: move-out inspection, permitted deductions, release by the bank or insurer and the one-year deadline.
The rent deposit secures your claims under the lease. For flats, it is held by a bank in a savings or custody account in the tenant’s name (Art. 257e para. 1 CO); the interest belongs to the tenant. After the tenant moves out, you cannot simply keep the money – you need a statement and a release. The basics are explained in the guide Rental deposits in Switzerland.
1. Inspect the flat
Inspect the flat together with the tenant when it is handed back and record any defects in the move-out report signed by both parties. You must notify the tenant immediately of defects they are responsible for – in practice within two to three working days and in writing. Otherwise you lose your claims, except for defects that could not be detected by a normal inspection; report these as soon as you discover them (Art. 267a CO).
2. What you may deduct
- Damage beyond normal wear and tear, at current value. Normal wear and tear is covered by the rent (Art. 267 para. 1 CO). Example: if paintwork with an assumed lifespan of eight years is six years old at move-out, the tenant bears at most a quarter of the cost. The joint lifespan table of the homeowners’ and tenants’ associations serves as a guide.
- Cleaning, if the flat was not returned properly cleaned.
- Unpaid rent and any balance due from the service charge statement. If that statement is not yet available, you may retain a reasonable amount and release the rest straight away.
3. Settle and release
- Send the tenant a written statement with receipts or quotes.
- If the tenant agrees, you both sign the release for the bank. The bank only pays out with the consent of both parties or on the basis of a final payment order or a final court judgment (Art. 257e para. 3 CO).
- If the tenant does not agree, you must assert your claim legally within one year of the end of the tenancy – through debt enforcement or an application for conciliation.
If you do not, the tenant can reclaim the deposit from the bank on their own once the year has passed. If you have no claims, release the deposit promptly and in full.
Rent deposit insurance
If the tenant took out rent deposit insurance instead of a blocked account, notify the insurer of your claim in line with the policy terms and observe its deadlines. The insurer pays up to the guaranteed amount and then recovers it from the tenant. If you have no claims, confirm this to the insurer so the guarantee can be cancelled.
On immoz.ch you create the move-out report and the deposit statement directly with the digital lease – with the balance including interest and any claims by category. The tenant agrees with their name, password and payout account, or raises a reasoned objection. Once the tenant agrees, a joint release declaration for the bank or insurer is generated, and the platform reminds both parties of the one-year deadline.
This overview is not legal advice. The cantonal conciliation authorities and homeowners’ and tenants’ associations can help with questions.
Frequently asked questions
How long can I hold on to the deposit?
As long as justified claims are outstanding. However, assert them within one year of the end of the tenancy through debt enforcement or an application for conciliation – otherwise the tenant can withdraw the deposit from the bank on their own (Art. 257e para. 3 CO).
Can I have the deposit paid into my own account?
No. For flats, the deposit must be held by a bank in an account or custody account in the tenant’s name (Art. 257e para. 1 CO).
What counts as normal wear and tear?
Signs of ordinary use, such as slightly yellowed walls or worn flooring in walkways. They are covered by the rent and may not be deducted from the deposit.