When you rent an apartment or a commercial property, landlords usually require some form of security, known as a rental deposit. This deposit provides security in case the rent and ancillary costs are not paid or any damage is caused to the rental property. In the case of apartments, landlords can ask for a maximum of three times the monthly rent (gross) as a deposit. For commercial properties, the amount is negotiable.

The deposit is due when you move in or with the first rent payment. It is refunded after you move out – if no damage has occurred – together with the final bill.

There are various ways to provide the deposit. In addition to a private guarantee, for example for parents wishing to help their children find an apartment, the common options are a rental surety savings account or a rental surety guarantee held with a bank or insurance company.

The rental deposit is usually held in a special rental surety savings account. This is a blocked account set up in the name of the tenant. It is known as a blocked account, because the blocked funds can only be withdrawn with the joint consent of the landlord and the tenant (excluding the interest).

Many banks offer a rental surety savings account. With �۶���Ƶ you can open a rental surety savings account quickly and easily online. A private account held by the landlord is not permitted as a rental surety savings account.

Interest is usually paid on rental surety savings accounts, although at a lower rate than for normal savings accounts. The interest incurred on rental surety savings accounts belongs to the tenant. You will be informed about the account balance regularly, usually at the start of the year.

The rental surety guarantee has become established as an alternative to the rental surety savings account. It is also advertised as “rental guarantee insurance” or a “rental deposit without a bank deposit”. A solution of this kind requires the landlord’s consent. With a rental surety guarantee, a provider, such as an insurance company, guarantees on your behalf that it will pay the deposit amount to the landlord if necessary. In return for this guarantee, which you can prove with a guarantee certificate, you pay the provider a monthly or annual premium. Some insurance companies also charge administrative fees.

If a payment to the landlord becomes due after the end of the tenancy, it will initially be paid by the provider. However, this is merely an advance payment. The provider will subsequently reclaim the rental deposit payment from you or your personal liability insurance provider.

What a rental surety guarantee costs

How much a rental surety guarantee costs depends on the size of the rental deposit and the terms an insurance company offers. Using a company’s premium calculator, you can easily find out online how much the flexible insurance solution would cost you.

For example, if your deposit is CHF 4,000, the insurance premium is 5% of the deposit and the administration fee is CHF 20, you pay CHF 220 each year for the guarantee. Additional costs may arise in the event of a claim or if the insurance is terminated.