Security deposit not returned — Switzerland: how to get it back

Your Rights and Legal Deadlines in Switzerland

The statutory framework: Art. 257e CO

The security deposit (Mietkaution / dépôt de garantie) in Switzerland is governed by Article 257e of the Swiss Code of Obligations (CO), available in full on the official federal law portal Fedlex — CO Art. 257e. Every rule below flows directly from that article and from Art. 267a CO (defect reporting at exit).

Key figures at a glance

How release works in practice

Because the deposit sits in a jointly-blocked account, it can only be released in one of two ways:

1. Written agreement of both parties — the landlord signs a release instruction to the bank in the tenant's favour, and both parties countersign; or
2. Court order — a judge orders the bank to release the funds.

After the key handover and the exit inspection, if the landlord has no valid claims, they must promptly give their written consent to the bank. In practice, most deposits are released within a few weeks of the exit inspection, provided there are no disputes.

There is no single fixed number of days written into Art. 257e CO for "ordinary" return; the law imposes a "reasonable period" for the landlord to quantify claims, with the hard outer limit of 1 year. The 1-year deadline is absolute: after that one-year window, the deposit must be released in full, regardless of any unresolved claims.

What the Landlord May — and May Not — Deduct

Legitimate deductions

The landlord may retain part or all of the deposit to cover:

• Unpaid rent or unpaid ancillary costs still owed at the end of the lease.
• Damage beyond normal wear and tear — breakage, stains, holes in walls, broken fixtures, etc., documented in the exit inspection report.
• Cleaning costs if the apartment was not returned in an adequately clean state (subject to the contractual standard and local practice).
• Outstanding repair costs for defects caused by the tenant that are not attributable to normal use.

What the landlord cannot deduct

• Normal wear and tear — minor scuffs, natural fading of paintwork, small marks consistent with ordinary use over the lease term.
• Damage already documented in the entry inspection report (état des lieux d'entrée / Einzugsprotokoll) — if defects were noted when you moved in, they cannot be charged to you at exit.
• Deductions based on damage reported for the first time after the exit inspection, once the one-year limitation has expired (Art. 257e para. 3 CO).
• Any amount exceeding the capped deposit (i.e., beyond 3 months' net rent for residential leases).

The critical importance of the exit inspection

The exit inspection is the most important moment in the deposit return process. It is a formal walkthrough of the apartment, conducted with both the tenant and the landlord (or their representative), where the condition of the property is documented. Attend it, sign only what is accurate, and keep your copy.

Under Art. 267a CO, damage noted at exit must be reported immediately to avoid being time-barred. Always bring:

• Your copy of the entry inspection report (signed at move-in).
• Photographs taken on move-in day, timestamped if possible.
• Any written exchanges with the landlord about repairs made during the tenancy.

Penalties and Default Interest in Case of Delay

Default interest: Art. 104 CO

Switzerland does not apply automatic punitive penalties on a landlord who delays return of the deposit. However, the law does provide a financial remedy: if the landlord delays releasing the deposit without valid reason, the tenant may send a formal notice, then apply to the conciliation authority. If conciliation fails, the court may order the landlord to release the deposit and pay default interest at 5% per annum (Art. 104 CO) from the date of the formal notice.

The landlord may also be ordered to pay costs if their refusal is deemed unjustified.

What triggers default interest?

Default interest begins to run from the moment you serve a formal written notice (mise en demeure / Mahnung) setting a specific deadline for the landlord to release the deposit. Without that formal step, the clock does not start. This is why sending a proper written notice — documented and dated — is legally essential.

Court costs and fee-shifting

The conciliation procedure is free for both parties in most cantons and is typically resolved within 30–90 days. If the matter proceeds to the cantonal tenancy tribunal, the losing party generally bears court costs and may be liable for the other party's legal fees, especially where the refusal is found to be unjustified.

Sending a Formal Notice: Step-by-Step

Why a written formal notice is essential

A formal notice (mise en demeure / Mahnung) is the legal trigger that converts an informal dispute into an enforceable claim. It starts the 5% default interest running (Art. 104 CO) and is mandatory before filing a conciliation request. Without it, a court will typically reject a claim for interest.

Step 1 — Gather your documentation

• Signed copy of the lease agreement.
• Copy of the entry and exit inspection reports.
• Proof that you returned the keys (dated receipt if possible).
• Bank details of the blocked deposit account (name of bank, account number).
• Any prior written exchanges (emails, letters) about the deposit.

Step 2 — Send a formal written notice by registered mail

Send a letter by registered mail (lettre recommandée / Einschreiben) to the landlord (or their management company) containing:

1. Reference to the lease (address, dates of tenancy, deposit amount).
2. Statement that the tenancy ended on [date], the keys were returned, and the exit inspection took place on [date].
3. Assertion that no valid claim justifies withholding the deposit.
4. A specific deadline — typically 10 to 14 calendar days — for the landlord to give their written release instruction to the bank.
5. A warning that, in the absence of compliance, you will file a request with the cantonal conciliation authority and claim default interest at 5% per annum from this date.

Keep the registered mail receipt. This is your legal proof that the notice was served and dated, and it anchors the start of any default interest calculation.

Step 3 — If no response within the deadline: file with the conciliation authority

If the landlord does not act within the deadline set in your formal notice, proceed immediately to the conciliation authority (see next section). Do not wait.

Recourse: Conciliation Authority and Tribunal

Stage 1 — The cantonal conciliation authority (mandatory first step)

Before any tenancy dispute reaches a civil court, it must pass through the cantonal Schlichtungsbehörde — a conciliation authority specifically designed to mediate landlord-tenant conflicts. This step is mandatory under the Swiss Code of Civil Procedure (CPC) and cannot be skipped.

• Cost: The procedure is free for both parties in most cantons.
• Composition: The conciliation board consists of a chairperson and equal representation from both the tenant side and the landlord side.
• Timeline: Typically 30–90 days from filing to hearing.
• Outcome: Roughly 70% of cases are resolved at the conciliation stage without proceeding to court.
• If conciliation fails: A report is drawn up and the parties can then take the matter to the cantonal tenancy tribunal (Tribunal des baux et loyers / Mietgericht).

How to find your cantonal conciliation authority

The conciliation authority is always determined by the location of the rented property (not your new address or the landlord's domicile).

Stage 2 — The cantonal tenancy tribunal

If conciliation fails, you receive an autorisation de procéder / Klagebewilligung (leave to sue). You then have 30 days to file your claim with the cantonal tenancy tribunal. At this stage, the court can:

• Order the landlord to sign the bank release instruction.
• Award default interest at 5% per annum from the date of formal notice (Art. 104 CO).
• Allocate court costs and procedural fees against the losing party.

Consider joining ASLOCA (French-speaking Switzerland: asloca.ch) or the Mieterverband / SMV (German-speaking Switzerland: mieterverband.ch). Members receive expert legal advice, template letters, and representation before conciliation authorities — often at significantly lower cost than private lawyers.

Special rule: the bank release after 1 year

If your landlord has made no claim and has not filed any court action within 1 year of the end of the tenancy, you may write directly to the bank holding the blocked account and request unilateral release of the funds under Art. 257e para. 3 CO. Attach proof that the tenancy has ended (termination letter or lease expiry date) and that more than 12 months have elapsed without any legal action by the landlord.

FAQ

1. My landlord is withholding the deposit claiming cleaning costs, but the apartment was professionally cleaned. What can I do?

Refuse to accept unjustified deductions in writing immediately after the exit inspection — do not sign the exit inspection report if it contains items you dispute, or sign with a written reservation ("sous réserve" / "unter Vorbehalt"). Gather your cleaning invoice, before/after photographs, and any written confirmation from the landlord that the property was accepted. Then send a formal notice demanding release of the full deposit within 10–14 days, and if refused, file with your cantonal conciliation authority. If you believe the landlord is making unjustified deductions, the first step is the cantonal conciliation authority, which is a free, mandatory first step before any court proceedings. Most disputes are resolved at this stage without going to tribunal.

2. My landlord has disappeared or is unresponsive. What happens to the money in the blocked account?

The funds remain safe — they are held in your name at a Swiss bank, not with the landlord. The tenant remains the owner of the funds; the account is simply blocked in favour of the landlord for the duration of the lease. If the landlord is unreachable, you can still file a request with the conciliation authority, which will attempt to summon them. If the landlord does not respond within 1 year of the end of the tenancy and has asserted no claim, you can request unilateral release from the bank directly under Art. 257e para. 3 CO.

3. I paid the deposit in cash directly to the landlord. Is this legal, and how do I get it back?

Swiss law (Art. 257e CO) requires the deposit to be held in a blocked bank account in the tenant's name. You should always refuse cash payments or transfers to the landlord's private account. If you have already paid in cash, the arrangement is legally irregular but the underlying debt still exists. Keep all receipts, bank transfer records, and written confirmations. If the landlord refuses to reimburse you, you can bring a civil claim through the conciliation authority for recovery of the sum as an unjustified enrichment or contractual debt — consult ASLOCA or the Mieterverband for specific guidance on evidence.

4. I used a surety insurance (e.g., Firstcaution, SwissCaution) instead of a blocked account. Does the same law apply?

Alternative products such as surety insurance (Firstcaution, SwissCaution, CautionPlus) allow the tenant to avoid tying up capital. In exchange for an annual premium, an insurance company or bank acts as guarantor towards the landlord. These products are not expressly provided for by Art. 257e CO but are widely accepted in practice. The 1-year deadline for the landlord to assert claims (Art. 257e para. 3 CO) applies by analogy; however, the precise release mechanism depends on your specific surety contract. Check the policy terms, and if in doubt, contact the insurer and ASLOCA/Mieterverband for guidance. You are also generally entitled to stop paying premiums once the tenancy ends and the landlord has no outstanding justified claims.