It's the budget shock of every move to Switzerland: when signing the lease, the agency asks for a rental deposit — up to three months' rent locked in a bank account. For a CHF 2,500 one-bedroom, that's CHF 7,500 tied up before you even get the keys. Here's how it works, and how to lighten the first month's bill.
The principle: a blocked account in your name
The rental deposit is legally capped at three months' net rent for residential leases (art. 257e of the Swiss Code of Obligations). The money sits in a dedicated deposit account opened in your name: it remains yours and earns interest, but neither you nor the landlord can touch it unilaterally. It covers the landlord for unpaid rent or damage recorded at the move-out inspection.
The no-deposit alternative: paid guarantee insurance
Guarantee companies (SwissCaution, goCaution, Firstcaution, among others) vouch for you instead: nothing to block, but an annual premium — typically around 4–5% of the guaranteed amount, every year, non-refundable. Over a five-year stay, the paid guarantee usually costs more than the interest lost on a classic deposit. It makes sense when liquidity is tight at move-in — typically when arriving from abroad, when everything has to be paid at once.
| Classic bank deposit | Paid guarantee | |
|---|---|---|
| Capital blocked | Up to 3 months' rent | None |
| Cost | Zero (interest is yours) | ~4–5% of the amount / year, non-refundable |
| Recovery | Full refund at departure (barring disputes) | Nothing to recover |
| Best for | Long stays, savings available | Recent arrival, tight cash flow |
Getting your deposit back when you leave
The account is released with both parties' written consent after the move-out inspection — or automatically one year after the end of the lease if the landlord hasn't taken legal action. The best way to avoid deductions: hand back a spotless apartment, and make sure the move-in inspection report was signed with photos, with every pre-existing defect noted.
FAQ
Is the three-month deposit mandatory?
No — it's a legal maximum, not an obligation. Some landlords ask for less, a few for nothing. In practice, three months is the norm in the big cities.
Can I pay the deposit in instalments?
Rarely accepted by agencies. If you can't block the sum at once, the paid guarantee is the alternative designed for that.
Can the landlord keep my deposit for normal wear and tear?
No. Normal wear (furniture marks, light wall traces after years of occupancy) is the landlord's responsibility. Only damage beyond normal wear can be deducted.
Also read: our complete guide to moving to Switzerland and how much it costs to furnish an apartment.
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