When you sign a tenancy agreement in Switzerland, the landlord will usually ask you for a deposit equivalent to two or three months’ rent. Three months is the legal maximum permitted under the Swiss Code of Obligations, and the landlord cannot ask for more, even if the agreement states otherwise. If it does, that clause is void.
What many people don’t realise is that this money cannot be paid into the landlord’s account: it must be deposited into a blocked bank account in your name. The account is in your name and any interest it generates is yours. The landlord can only claim this money if there is a proven debt at the end of the tenancy, whether it be unpaid rent or damage that goes beyond normal wear and tear.
When you return the keys, the standard timeframe for the release of the security deposit is one to three months, once it has been confirmed that there are no outstanding claims. If the landlord fails to act, you can contact the bank directly with the landlord’s consent or, if you cannot obtain this, apply to the relevant authority (in most cantons, the juge de paix or the commission de conciliation) to order its release. You do not need a solicitor for this first step.
An alternative that is becoming increasingly popular is not to pay a cash deposit but to take out a joint surety bond through specialist companies such as SwissCaution or Firstcaution. You pay an annual premium equivalent to just under 5% of the guarantee amount, and your cash remains available. Landlords accept these solutions in most cantons, although they are not legally obliged to do so.