Deposits for rent in Switzerland.

Your landlord will typically request a one-time rental deposit as part of your lease agreement when you first move in. This deposit is determined by the size of the space and the amount of rent you are paying. The idea behind this deposit is to, in theory, make sure that any significant damage to the property during your tenancy is covered before moving forward with the process of looking for a home or apartment to purchase.

Although this money can be returned to you at the conclusion of your contract, there are still creative uses for the money, so it’s important to understand the circumstances under which your deposit will be withheld.

Who covers the deposits on Swiss rental properties?

The majority of rental contracts in Switzerland require a security deposit when looking for a home. This is applicable to all varieties of housing and is ordinarily determined by the property’s value. Student housing and homes with multiple occupants also have higher deposit requirements because of the nature of university life, while furnished apartments have higher deposits because the landlord owns the furniture. Housing association-owned properties do not require a deposit but rather a regular membership fee.

What are the rental deposits in Switzerland?

The amount of your rental deposit cannot exceed three months’ worth of rent. This typically requires a deposit of 500 to 5000 Swiss francs. During the first month you live there, you pay the money, and it is given back to you when you leave.

Swiss bank accounts for rental deposits.

After you have paid your security deposit, the landlord is required to deposit the funds in a rental deposit bank account. While the landlord is holding onto the security deposit, some banks offer interest payments. The annual percentage can be between 0.01% and 0.02%. It is up to the landlord to decide which account the money goes into, but you can request to be assigned to a bank that provides favourable deposit rates.

When will my Swiss security deposit be returned?

After the lease is finished, tenants in Switzerland are given their security deposit. When you vacate your apartment, this usually happens. You should encourage the landlord to know which account to pay the deposit into when you write your notice letter by indicating that information.

Swiss landlord declines to pay the security deposit.

If your landlord feels that the standards for upkeep and cleanliness have not been met, they have the right to refuse to return your security deposit. Within 30 days of the tenant’s move out, they must explain this choice to them and provide a justification for not returning the deposit. The steps that must be taken in order to receive the deposit will frequently be laid out by the landlord.

Reasons why a Swiss security deposit may not be given.

Landlords in Switzerland have a number of grounds for delaying returning a security deposit. These concern the general condition of the lodging upon your departure and any duties that you have neglected. It is advised that you speak with a lawyer and file an appeal with your neighbourhood conciliation board if you feel that your rental deposit is being unfairly withheld.

Excessive Damage

In this context, excessive damage is defined as harm to accommodations that are not the result of normal wear and tear. Your rental agreement or the laws in effect in your county (canton) will define this damage. In general, landlords are more tolerant of damage to all types of housing the longer the tenancy. The rental deposit will cover the cost of repairing this damage, but any additional costs will be passed along to you.

Unfinished renovations to the facility.

If you have made interior changes to your rental property without the landlord’s consent, you are responsible for the costs associated with restoring it to its original state. Interior alterations, kitchen and bathroom upgrades, layout adjustments, and, in extreme circumstances, additions can all fall under this category. The rental deposit will be applied to any alterations the landlord wishes to make.

Cleaning.

In Switzerland, it is mandatory to pay for cleaning services before leaving rented housing. A certified thorough clean of your home, performed by a professional cleaner, may be mandated by law in some cantons. The cost of a last-minute cleaner will be deducted from your security deposit if it is discovered that you did not clean your home to the highest standard or that you left things behind.

Remember that cleaners are in high demand on designated moving days and that finding one at short notice can cost several times as much as your deposit.