Rental deposit: three months, in an account in the tenant's name

A rental deposit is not an advance the landlord may keep in their own account. Article 257e of the Code of Obligations, in the text in force on 1 October 2026, says where the sum must be placed, how high it may go for a home, and when the bank may release it.

Three months for a home

For a residential lease, the landlord may not demand security of more than three months' rent (art. 257e para. 2). Rent is the price for use of the home (art. 257). Ancillary charges are dealt with separately and are not added to that cap. A lower amount may be agreed. Anything above three months is not due.

That federal cap applies to homes. For commercial premises, article 257e paragraph 1 still requires the bank account if the security is provided in cash or securities. It does not set the three-month maximum: the contract sets the amount. Cantons may add rules (art. 257e para. 4). This text describes federal law.

The account is in the tenant's name

If the tenant of a home or of commercial premises provides security in cash or securities, the landlord must deposit it at a bank, in a savings or deposit account in the tenant's name (art. 257e para. 1). The money does not become the landlord's property. Because the account is in the tenant's name, the interest belongs to the tenant.

A transfer into the landlord's private account is not enough. The tenant should ask in writing for the sum to be placed in the account in their name, and keep proof of payment.

The bank does not pay on a letter alone

The bank may return the security only with the agreement of both parties, or on the basis of a payment order that was not opposed, or an enforceable judgment (art. 257e para. 3, first sentence). A letter from the landlord alone is not enough. A disagreement about the inventory does not, by itself, allow either side to take the money.

If the landlord starts debt collection, the payment order is challenged by filing an opposition. The ordinary period is ten days from service (art. 74 of the Debt Collection and Bankruptcy Act). Without an opposition, the bank may pay the deposit to the landlord.

The year after the lease ends

If, within the year after the lease ends, the landlord has not asserted a claim against the tenant in court, in debt collection, or in bankruptcy, the tenant may require the bank to return the security (art. 257e para. 3, second sentence).

This is not a thirty-day refund deadline. Before that year ends, without agreement or an enforceable title, the bank keeps the sum. After the year, if no proceedings were opened, the tenant asks the bank, even without the landlord's signature. If there is a real dispute, unpaid rent or damage, the landlord must open proceedings within that year. Otherwise the landlord cannot hold the deposit by silence alone.

What the deposit can cover

It secures the tenant's obligations: unpaid rent, and damage beyond normal wear. Normal wear is not a debt. Article 257e does not price a painting invoice. The contract, the check-in inventory and the check-out inventory remain decisive. A service-charge statement that falls due later can be a claim, if it is actually owed. It does not remove the need to act within the year.

Insurance is not this account

A rental-guarantee insurance policy is a contract with an insurer. It is not cash placed under article 257e paragraph 1. The landlord may refuse it. The premium pays for the guarantee. It is not returned the way a deposit is. If the security is paid in cash, article 257e applies.

What these rules do not decide

They do not decide a particular item of damage, or the amount of an invoice. They do not replace a more specific cantonal rule where a canton has made one. A home under a special regime may follow other rules. The contract and the receipts still have to be read.

Frequently asked questions

• Can the deposit exceed three months' rent? Not for a residential lease. For commercial premises, the federal three-month cap does not apply.
• Can the landlord keep the deposit in their own account? No, if it is provided in cash or securities. It goes into a bank account in the tenant's name.
• Is the money returned automatically after one year? No. After one year from the end of the lease, and only if the landlord opened no proceedings, the tenant may ask the bank for the return.
• Should a payment order be opposed? Yes, if the claim is disputed. Without an opposition in time, the bank may pay the landlord.

Avocados AI's Basic plan costs CHF 4.99 a month, the price of a coffee. It is there to organise the contract, the receipts and the inventories, and to prepare the questions. It does not replace a lawyer's review of the file. The Swiss tenancy guide sets out the framework of rent, notice and the tenant's protection.

Sources

Code of Obligations, articles 257 and 257e, text in force on 1 October 2026, checked on Fedlex on 17 October 2026. Federal Debt Collection and Bankruptcy Act, article 74. Only the official publication is authoritative.