Security deposit (Mietkaution).

A security deposit (Mietkaution, also called Mietzinsdepot in German-speaking Switzerland) is money the tenant puts up as security for the landlord.

The rules

• At most three months' rent (art. 257e OR).
• A blocked account (Sperrkonto) at a Swiss bank in your name. The landlord has no direct access to it, and the interest is yours.
• Paid out only if you both agree, or on a final payment order or a final court judgment. If the landlord has taken no legal action against you (court case or debt enforcement) within one year after the tenancy ends, you can ask the bank to pay it back to you alone.

When you move out

1. Handover (Wohnungsabnahme): you walk through the flat with the landlord or the agency. The landlord must check the flat and tell you right away about defects you are liable for (art. 267a OR).
2. Agreed deductions: you both sign a release to the bank for the agreed amount, and the rest comes back to you.
3. Disagreement: go to the cantonal conciliation authority (Schlichtungsbehörde) first.
4. After one year: if the landlord has taken no legal action, ask the bank for the full deposit.

Deposit insurance instead of cash

Instead of tying up three months' rent, you can take out a deposit insurance (for example SwissCaution, FirstCaution or GoCaution). You pay a yearly premium, and the insurer guarantees the deposit to the landlord. Upside: no capital tied up. Downside: the premiums are not refunded, and if the landlord makes a valid claim, you pay the insurer back. It suits people who would rather keep the cash free; over a long tenancy the premiums add up.

Common mistakes

• Paying the deposit straight to the landlord instead of into a blocked account
• Not checking that the account was opened: ask the bank for the confirmation
• Forgetting to claim the deposit back after moving out

General information, not legal advice.

• OR art. 257e (fedlex.admin.ch)
• OR art. 267a (fedlex.admin.ch)