Rental guarantee in Switzerland

Renting a flat usually requires a bank guarantee. Paying three months’ rent in one go is not always possible. Fortunately, there is an alternative. Find out about the rental guarantee without a bank deposit.

The principle of the rental deposit in Switzerland: the bank deposit

When you are considering renting a flat in Geneva or in any other city or canton in Switzerland, it is not enough to submit a rental application in order to receive the keys to your new flat. You need to be able to pay what is called the Swiss rent deposit. This involves blocking a sum of money for the duration of the lease. 

You can deposit the money agreed in the tenancy agreement into a bank account. Generally, the incoming tenant must pay the equivalent of three months’ rent (whether it is a low-rent flat or not). This is a bank deposit. This sum will be returned to you after you have terminated your tenancy if you have paid your rent and have not damaged the property. 

Although this Swiss rental deposit is not compulsory, every property owner requires it, which means that they are covered in the event of non-payment of rent or damage to the property.

Rent guarantee in Switzerland: rent guarantee without bank deposit

However, there is an alternative to a bank deposit. It is also possible to opt for a rental guarantee without a bank deposit. The Swiss rental guarantee then takes the form of an annual premium to be paid to an organisation that guarantees the landlord. In other words, this solution consists of paying an annual premium for the duration of the lease to an organisation which, in return, will act as guarantor in your place vis-à-vis the landlord.

In practice, if you do not pay your rent, the landlord can claim compensation from the establishment in question. The owner is therefore reassured. As a tenant, you retain your cash flow and have better control of your budget by paying regular instalments rather than a large sum at once. 

A rental guarantee without a bank deposit to preserve your budget

The rental guarantee without a bank deposit is a welcome alternative. This is because, at the time of choosing a flat to rent, the tenant has not yet recovered the deposit from his or her previous accommodation. 

In addition, moving to a new location involves costs. First of all, you have to finance the move. A step that requires a lot of organisation (and that our partner PlanYourMove offers to help you with its personal removal assistant). Then, it is sometimes necessary to make the flat fit your taste. From a simple coat of paint to a new kitchen, the budget can be significant. Finally, new space sometimes means new furniture. If the corner sofa doesn’t fit in your new living room, you’ll have to spend more money. In short, with a rental guarantee without a bank deposit, you retain a certain amount of financial freedom to deal with the various costs generated by your change of accommodation.

To make things easier for you, you can obtain a free provisional rental guarantee certificate on SherlockHomes. All you have to do is fill in your information and your document will be available instantly on your SherlockHomes space and by email. This document will allow you to reinforce the credibility of your file during an application.

A rental guarantee without a bank deposit to reassure the property management company

If you take out a rental guarantee without a bank deposit with a reputable organisation (e.g. Swisscaution; our partner), you will secure the property management company and the owner. The latter will be able to contact your insurer in the event of your defaulting. This is a good way to strengthen your rental application. And if you have not yet found the property of your dreams, visit SherlockHomes, the real estate detective who puts landlords, outgoing tenants and candidates for renting in French-speaking Switzerland in touch with each other.

Renting an apartment without a rental guarantee? Possible or not?

To find an apartment to rent, it is usually enough to consult the real estate ads. However, to rent an apartment, you have to convince the real estate management or the owner of the property, and to reassure them, nothing better than a deposit. So, can we consider renting an apartment without a guarantee? What to put in a rental file? Elements of an answer.

Is it possible to rent an apartment without a rental guarantee?

To rent an apartment in Switzerland, a deposit is required by the owner, even if it is not formally obligatory. In concrete terms, this is a sum blocked for the entire duration of the lease. It will be used in case of default of the tenant. When renting an apartment, the rental guarantee can be used by the real estate agency if the tenant does not pay the rent or if the agency notices damage to the property.

Renting an apartment: how much of a rental guarantee?

The Swiss Code of Obligations clearly stipulates that this deposit must not exceed three months’ rent for an apartment. Also, to rent an apartment with a rent of CHF 1’500, the tenant will most of the time have to provide a guarantee of CHF 4’500 at the beginning of the rental contract. The amount must be specified in the lease.

Apartment rental: what rental guarantee should I offer to the real estate agency?

Are you wondering what to put in a rental file when it comes to a deposit? In addition to the proof of income and the certificate of non prosecution, you must provide a rental guarantee. For apartment rentals, the guarantee is usually in the form of a bank deposit. In other words, the tenant locks in the requested amount in a dedicated account. But you need to have that kind of money at your disposal. That’s why there is an alternative: the rental guarantee without a bank deposit. In this case, the tenant does not need to block the required amount. All you have to do is pay an annual premium to an organization that will act as a guarantor for the owner, who usually accepts this bonding solution. Among the services offered by SherlockHomes with its partners, it is possible to make a request to the market leader SwissCaution and obtain a free provisional rental guarantee certificate in a few moments.

This article is not exhaustive and does not engage the responsibility of its author.