The Swiss rental deposit: what a landlord may ask, and what they may not

A Swiss rental deposit is capped at three months of net rent (art. 257e Code of Obligations) and must sit in a bank account opened in the tenant's name, never the agency's. Deposit insurance avoids locking up that cash, but the premium is never refunded and you remain liable for damage.

Updated on 2026-08-16

What our own measurements show

In Zurich, at the median rent of 1300 CHF measured across 55 online listings, a three-month deposit means 3900 CHF tied up.
In Geneva, at the median rent of 2990 CHF measured across 202 online listings, a three-month deposit means 8970 CHF tied up.
In Lausanne, at the median rent of 1655 CHF measured across 83 online listings, a three-month deposit means 4965 CHF tied up.

HelvetLoc measurements of 02.10.2026, across our connected sources. Swiss rental market barometer.

The cap: three months of NET rent

Article 257e of the Code of Obligations sets the maximum at three months of rent, excluding service charges. On a flat at CHF 1,500 plus CHF 150 charges, the deposit cannot exceed CHF 4,500.

A higher demand is not valid, even if it is written into the lease. It happens most often with files seen as fragile, income near the threshold, a newcomer with no Swiss record, which is exactly when knowing this helps.

The account must be in your name

The money goes into a bank account opened in the tenant's name. It never goes to the agency's or the owner's account.

Practical consequence: the bank can only release it with both parties' agreement, or by court decision. Neither side can take it alone, and the interest belongs to you.

Deposit insurance: what it solves, what it costs

Instead of blocking CHF 4,500, you pay a yearly premium to an insurer who guarantees the landlord. For someone arriving in Switzerland and already paying for a move, that is often what makes the flat affordable at all.

What people discover too late: the premium is NOT a deposit. It is gone, every year, and never comes back. Over a lease of several years the total commonly exceeds what locking up the cash would have cost.

It also does not release you from anything. If the landlord claims damage, the insurer pays and then claims that amount back from you.

Getting your deposit back

When you hand back the flat, the bank releases the funds if the landlord agrees. If there is a dispute, the money stays blocked until it is settled.

Article 257e provides a way out: one year after the end of the lease, if the landlord has brought no legal claim, you can require the bank to release the deposit to you.

The exit inventory decides everything. Defects listed there can be charged to you; those discovered afterwards generally cannot, unless they were hidden.

Frequently asked questions

How much deposit can a Swiss landlord ask for?

Three months of net rent at most (art. 257e CO), service charges excluded. Anything above that is not valid, even if the lease says so.

Can the deposit be paid to the letting agency's account?

No. It must be placed in a bank account opened in the tenant's name. The bank releases it only with both parties' agreement or by court decision.

Is deposit insurance refunded at the end of the lease?

No. Unlike a deposit, the premium is kept by the insurer. And if the landlord claims damage, the insurer pays first and then claims it back from you.

My former landlord is blocking the release. What can I do?

One year after the lease ends, if no legal claim has been filed, you can require the bank to return the deposit to you.

I am moving from abroad, can I open the account before arriving?

In practice the deposit account is opened with a Swiss bank once the lease is signed. That is why many newcomers use deposit insurance for their first lease.

Sources

General information, checked against the sources listed. It does not replace advice from the competent office.

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