As detailed in most rental contracts in Switzerland, at the start of your tenancy your landlord will ask you for a one-off rental deposit. This deposit is based on the size of the accommodation and the monthly rent that you pay, and will be locked away for the duration of your tenancy and at its end can be used by the landlord to cover costs like repairs or debts, if you damage something or fail to pay your rent or bills.
There are several rules surrounding the process of paying and returning deposits in Switzerland, so it's good to know what to expect before you hand over the money.
Also known as a rental deposit or just a deposit, a security deposit is a one-off payment that a tenant gives to landlord before moving into a new property. It acts as a kind of safety net for the landlord, who keeps it for the duration of the tenancy and can retain it once the tenant has moved out, under certain circumstances, such as:
If no such costs are incurred by the landlord, they should return the rental deposit in full.
While there is no standard minimum for rental deposits in Switzerland, they are capped at three months' rent. This typically amounts to around 500 to 7.000 Swiss francs.
Furnished apartments generally have higher deposits, since it also covers the cost of replacing the furniture and appliances. You may also pay a higher deposit for student housing and houses of multiple occupancy, due to the nature of life at university. Accommodation owned by housing associations does not need a deposit but a regular membership fee instead.
The security deposit needs to be paid to the landlord during the first month of your tenancy. This is after you move in, not when the rental contract is signed.
Your landlord cannot ask you to pay the deposit earlier or to pay the deposit before signing the contract. Indeed, if the landlord is pushing you to pay the deposit early (and especially to pay it before you have even seen the apartment in person), consider this a warning sign.
You can choose one of two ways to pay your security deposit in Switzerland:
Many people pay their security deposit in cash, usually via a bank transfer. If you don't yet have a Swiss bank account, you can usually transfer the money from abroad, but you should be cautious if the landlord asks you to pay your deposit by PayPal or wire transfer, as this is a trick sometimes used by scammers.
Once you have paid your rental deposit, the landlord must put the money in a rental deposit bank account. The account is in your name and cannot be accessed by your or the landlord for the duration of the tenancy agreement.
Some banks offer interest payments on rental deposits while they are being held by the landlord. This can range from 0,01 to 0,025 percent per year. Although it is the landlord’s choice which accounts the money goes to, you can ask for your deposit to be placed with a bank that offers competitive rates on deposits.
If you don't want to lock away three months' worth of rent for the duration of your tenancy, or if you need to put down a new deposit and haven't yet received your old deposit back from your previous landlord, you can take out security deposit insurance.
Under this arrangement, a bank or insurance company promises to pay the landlord if there is money due at the end of your tenancy. In exchange, you pay the company a small monthly subscription fee.
Once you have paid your deposit to your landlord, it's a good idea to request a receipt. This will prove useful should you have any problems down the line. A deposit receipt should list the deposit amount, the date it was paid, and the names and addresses of both the landlord and the tenant.
When the tenancy comes to an end, your landlord is obliged to return the deposit, plus interest, to you (minus any deductions taken for repairs or missed payments). If you don't owe any rent and there isn't any damage to be repaired, you will usually receive your deposit back within 30 days of moving out.
To get your deposit back, you'll need to close your rental deposit account. For this, the bank will need a cancellation order signed by both you and the landlord. Once they receive this, they will release the money.
However, if there costs that are not available when you move out (for instance repair works or ancillary costs), the landlord has three months to produce a final bill. If there is a delay, they need to inform you of it and the exact reasons for it.
The absolute maximum a landlord can hold your deposit for is 12 months. After this, it must be returned, whether or not the landlord has consented. At this stage, you can contact the rental deposit bank and request your money be released.
Prior to this, if you believe that you are being unfairly denied your rental deposit, or if your landlord is taking legal action against you, it is recommended to consult a lawyer and appeal through your local conciliation board.
As outlined above, the landlord can withhold (part of) your deposit to pay for the following:
Excessive damage in this case is damage caused to accommodation that is not a consequence of regular wear and tear. The definition of this damage is outlined in your rental contract or by the regulations of your local canton. Generally speaking, the longer the tenancy, the more lenient landlords are towards damage. The costs of repairing this damage are covered by the rental deposit, although costs exceeding this amount will be charged to you as well.
If you have made modifications to the interior of your rental accommodation that were not agreed upon with the landlord, you are liable for any costs involved in restoring the property to its original form. This can include interior modifications, kitchen replacements, bathroom improvements, layout changes and, in extreme cases, extensions. Any modifications the landlord wants to remove will be paid for with the rental deposit.
When you leave rental accommodation in Switzerland, it is essential that you pay for cleaning services. In some cantons, it is required by law to have a full and comprehensive clean done by a professional cleaner. If you are found to have not cleaned your house up to the highest standard, or have left items behind, the cost of a short-notice cleaner will be deducted from the rental deposit.
Bear in mind that cleaners are in high demand during designated moving days and the cost of securing one at short notice is often many times more expensive than your deposit.
Your landlord is entitled to refuse repayment of a rental deposit if they believe that the criteria for maintenance and cleaning have not been met. They must make this decision clear to the tenant within 30 days of moving out, detailing why the deposit has not been repaid. In many cases, the landlord will specify what actions need to be taken in order for you to receive the deposit.
If you are involved in a dispute with your landlord over the repayment of your deposit, it's a good idea to initiate proceedings with your local arbitration authority. This procedure is free of charge.
Taking the following steps during your tenancy will improve the chances of everything running smoothly at the end when it comes to getting your deposit back from your landlord: