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The rental deposit is a security for the landlord.
A rental guarantee serves the landlord as security for unpaid rent, ancillary costs or repairs in the event of damage.
It can be deposited in the form of a bank deposit (at a bank or Firstcaution) or a rental deposit insurance (e.g. Firstcaution).
In Switzerland, the rental deposit can be up to three months' rent.
In Switzerland, a rental security deposit is required in the vast majority of lease agreements. It must be provided before moving into the property and serves as financial security for the landlord.
When the security deposit is paid into a bank account, the account is blocked in the tenant’s name for the entire duration of the lease. In Switzerland, the landlord can only access these funds with the tenant’s agreement or following an official decision.
This system ensures a secure and transparent framework for both parties.
In Switzerland, the amount of the rental security deposit for residential properties is legally limited to a maximum of three months’ rent.
In practice, however, the requested amounts generally vary:
This amount can represent a significant sum, which leads many tenants in Switzerland to look for alternative solutions.
In Switzerland, there are two main solutions for setting up a rental security deposit:
The bank security deposit
The tenant blocks a sum of money in a dedicated account. This money remains unavailable for the entire duration of the lease.
Rental guarantee insurance in Switzerland
The tenant pays an annual or monthly premium (only with Firstcaution) instead of tying up a large amount of money. This solution is becoming increasingly popular in Switzerland because it allows tenants to preserve their liquidity.
Specialized companies such as Firstcaution offer this type of solution, making it easier to access housing without having to lock away significant capital.
In Switzerland, the security deposit is refunded at the end of the lease, provided that all of the tenant’s obligations have been fulfilled.
The refund mainly depends on:
In the event of a dispute in Switzerland, the funds may remain blocked until a solution is reached between the parties or an official decision is issued.
Rental guarantee insurance in Switzerland is attracting more and more tenants.
It notably allows tenants to:
This solution is particularly suitable for people who want to keep their savings available or cover other expenses related to moving in Switzerland.
Is the security deposit mandatory in Switzerland?
It is not required by law, but it is almost always requested by landlords in Switzerland.
Who holds the security deposit in Switzerland?
The account is opened in the tenant’s name, even though the funds remain blocked for the duration of the lease.
Can the security deposit be replaced by insurance in Switzerland?
Yes, many landlords in Switzerland accept rental guarantee insurance as an alternative to a bank deposit.