Rental deposits in Switzerland: five rules worth checking

A deposit is security, not an extra fee

A rental deposit protects the landlord against justified claims connected with the tenancy. For residential premises, Article 257e of the Swiss Code of Obligations sets clear rules for its amount, where it is held and when it can be released.

1. The residential cap is three months’ rent

For a home, the landlord may not demand security exceeding three months’ rent. Check the amount in the lease before paying, especially if additional charges have been included in the calculation.

2. The account must be in the tenant’s name

When the security is paid in money or securities, the landlord must place it with a bank in a savings or deposit account in the tenant’s name. Ask for the bank documents and keep them with your lease.

3. The bank cannot release it on one person’s say-so

The bank may release the security with both parties’ consent, or on the basis of an enforceable payment order or final court judgment. This protects both sides while a genuine dispute is being resolved.

4. The one-year point matters after move-out

If the landlord has not legally pursued a claim against the tenant within one year after the tenancy ends, Article 257e says the tenant may ask the bank to return the security. Keep your handover report, correspondence and proof of the tenancy’s end date.

5. Document the handover carefully

The deposit rules do not decide whether a particular damage claim is justified. A dated handover report, photographs and written records of reported defects can make any later discussion much clearer. Do not sign a statement you do not understand or agree with.

Deposit checklist

• Confirm that the amount does not exceed the residential limit.
• Pay into the designated bank account rather than an informal private account.
• Keep the account confirmation and the complete lease.
• Record the condition of the home at move-in and move-out.

This article provides general information. Cantons may issue supplementary provisions, and individual disputes depend on the facts and documents.

This article provides general information, not legal advice. Individual facts and cantonal procedures can change the answer.