The Security Deposit (Rental Guarantee) in Switzerland

Legal Framework (art. 257e CO)

Maximum Amount

Art. 257e para. 1 CO: maximum three months' rent for residential leases. May be less, never more.

Blocked Account

Art. 257e para. 2 CO: landlord must deposit the guarantee in a savings or deposit account in the tenant's name at a Swiss bank. Interest belongs to the tenant.

Alternatives

Rental guarantee insurance (e.g. SwissCaution, SmartCaution): tenant pays an annual premium. Bank guarantee also possible. Accepted if landlord consents.

Release of Deposit

End of Lease

Landlord must return the deposit less justified claims. Art. 257e para. 3 CO: landlord has one year after lease end to assert claims.

The bank releases funds only upon: joint agreement, an enforceable judgment, or absence of notification within the statutory period.

One-Year Deadline

After one year without claims notification, the bank releases funds to the tenant on simple request.

Common Disputes

Move-Out Inspection

Most disputes concern property condition at move-out. Defects noted at move-out but not at move-in are in principle the tenant's responsibility, except for normal wear and tear.

Normal wear and tear (art. 267 al. 1 CO) cannot be charged to the tenant. Cantons publish lifespan tables (paint: 8-15 years, carpet: 10 years, etc.) as reference for determining the tenant's share.

Abusive Blocking

If the landlord blocks the deposit without justification, the tenant may petition the conciliation authority or court for release.

Cantonal Specifics

Geneva: landlord must deposit within 30 days. Canton of Vaud: specific cantonal rules on guarantee account management.