Rental Deposit in Switzerland: Amount and Refund

A rental deposit in Switzerland is a sum the tenant hands over at the start of the lease to cover any claims the landlord may have. For a home, it cannot exceed three months’ rent (art. 257e of the Swiss Code of Obligations, CO) and it must be placed in a blocked bank account in the tenant’s name. It comes back to you at the end of the lease, provided you follow the right procedure.

What the rental deposit is for and how much you can be asked for

The deposit protects the landlord if rent remains unpaid at the end of the lease or if the home shows damage beyond normal wear and tear. It does not replace the rent and does not entitle you to stop paying your monthly instalments before you leave.

The basic rules for a home:

• the amount is capped at three months’ rent (art. 257e CO); a landlord cannot demand more;
• the sum is placed in a blocked bank account opened in the tenant’s name;
• the interest earned by this account belongs to the tenant;
• the landlord cannot freely dispose of the money: the bank releases it only in the cases provided for by law (see below).

Check your lease: it states the amount requested and when it must be paid. If you are looking for a home, this deposit is one of the costs to plan for when you sign, alongside the first month’s rent. Our guide to the rental application in Switzerland details the other documents to gather.

Two ways to provide the deposit

You usually have a choice between two options. They protect the landlord in the same way, but not at the same cost to you.

The deposit suits you if you have the sum available and prefer not to pay a premium. The deposit-free guarantee avoids tying up money at the already expensive time of a move, but it costs you every year and those fees never come back. Compare offers before choosing, looking at the annual premium and the termination conditions, and check that the landlord accepts this option: they are not always willing to.

How the deposit works, step by step

1. Read the lease. It states the amount and the bank that may be imposed or suggested. The three-month cap applies in every case for a home.
2. Open the blocked account in your name. This is a legal requirement: the account is in the tenant’s name, not the landlord’s.
3. Pay in the sum. Keep the deposit certificate issued by the bank.
4. Keep the documents. Lease, bank certificate, annual interest statement: you will need them when you leave.
5. At the end of the lease, request the release by one of the three routes described below.

Getting your rental deposit back at the end of the lease

The bank returns the money only in three situations (art. 257e CO):

• with the written agreement of both parties: the tenant and the landlord jointly sign a release request;
• by court decision: if you do not agree, a court ruling can order the release;
• if the landlord has made no claim within one year of the end of the lease: the tenant can then apply to the bank to obtain the sum.

The most common case is the first: after handing back the home, you ask the landlord or the letting agency (régie) to sign the release agreement. The sooner you do so after handing over the keys, the simpler the process. The guide to handing back your property describes what happens on key handover day.

If the landlord announces deductions, ask them to justify these in writing: statement of account, quotes or invoices. Disputed amounts are settled amicably first; failing that, legal action remains open.

How to avoid deductions from the deposit

Almost every end-of-lease dispute concerns the condition of the home. A few habits reduce the risk:

• A precise move-in inspection (état des lieux): note every existing defect, room by room, and have it recorded in the report. See our guide to the property inspection.
• Dated photos at move-in and move-out, of all walls, floors, windows, bathrooms and fittings.
• Small damage repaired before you leave: plug holes filled, sealant redone, bulbs and small parts replaced.
• Thorough cleaning of the whole home, including appliances, blinds and balcony; you can do it yourself or hire professionals for end-of-lease cleaning.
• Rent up to date: arrears give the landlord a direct claim on the deposit.
• A prompt release request after handing over the keys, in writing, keeping a copy.

Also keep a record of your exchanges with the landlord: letters, emails, signed reports.

In French-speaking Switzerland: what changes by location

The three-month cap and the blocked account come from federal law: they apply in Geneva, the canton of Vaud, Valais, Fribourg, Neuchâtel and Jura. Differences come rather from practice.

• Letting agencies and forms: each letting agency (régie) or landlord has its own lease and release request templates. Read them carefully before signing.
• Landlords and tight markets: in cities where homes are scarce, entry requirements (deposit, supporting documents) are often applied strictly. Ask about local practice at the commune or a tenants’ association.
• Dispute procedures: the authority responsible for lease disputes and how it operates depend on the canton; ask the canton or the commune concerned.
• Newcomers from abroad or cross-border workers: if you are arriving from another country, include the deposit in your settling-in budget, as it comes on top of the first month’s rent.

If you are leaving a home in Lausanne, Geneva or Neuchâtel, also look at the local formalities of the move itself: registering with the residents’ registration office (contrôle des habitants), and any permit for a lorry or furniture lift on the public road, to be requested from the commune a few days or weeks before the date.

Doing it yourself or getting help

The rental deposit is easily managed on your own: opening the account, keeping the supporting documents, requesting the release and photographing the home need no outside help. What matters most is rigour over the move-in inspection and the calendar.

The move itself, however, quickly takes time and hands: packing, dismantling, transport, cleaning before the keys are handed back. If you want to save time and hand over a clean, empty home on the agreed date, professional removal companies can help (see residential moving). This site passes your request on to removal companies in the region; they provide a free, no-obligation quote. You can request a quote in a few minutes.

Frequently asked questions