Are you preparing your arrival in Switzerland and have already started looking for your future apartment? Between finding a home, putting together your application file, health insurance and the many administrative steps, one question quickly comes up: how does the rental guarantee work in Switzerland?
For expats, this step can be particularly important. When you arrive in the country, you often have to deal with many expenses at the same time, while opening a Swiss bank account or completing certain formalities may still be in progress.
Good news: the traditional bank deposit is not the only solution. A rental guarantee without a bank deposit, such as the one offered by Firstcaution, allows you to rent your home while keeping your cash available.
Here is everything you need to know before settling in Switzerland.
What is a rental guarantee in Switzerland?
The rental guarantee, also known as a rental deposit, provides security for the landlord. It can in particular be used to cover certain amounts owed by the tenant under the lease.
For residential properties, Swiss law provides that the landlord may not request a guarantee higher than three months’ rent. When the guarantee is provided in cash or in the form of securities, it must be deposited with a bank in an account in the tenant’s name.
Let’s take an example: if your new home costs CHF 2'000 per month and your lease provides for a guarantee equivalent to three months’ rent, you will have to provide a guarantee of CHF 6'000.
For an expat who has just arrived in Switzerland, this amount can represent a significant part of the relocation budget.
Why can the rental guarantee be a challenge for an expat?
When you settle in a new country, the expenses are numerous: moving, transport, furniture, insurance, subscriptions, administrative fees…
Having to tie up several thousand additional francs in a bank account can therefore considerably reduce the cash you have available.
Some practical constraints may also be added to this:
- you do not yet have a Swiss bank account;
- you have only just started your professional activity in Switzerland;
- you have many expenses to pay linked to your relocation;
- you would rather keep your savings available than block them for the entire duration of the lease.
It is precisely in this context that a rental guarantee without a bank deposit can be of interest.
Firstcaution: an alternative to the traditional bank deposit
Firstcaution is a Swiss insurance company specialised in rental guarantees and authorised by FINMA. Its goal is to offer an alternative to the traditional bank deposit, with a fully digital solution.
Instead of blocking up to three months’ rent in a bank account, the tenant can choose a rental guarantee without a deposit. Firstcaution then acts as guarantor towards the landlord and the tenant pays a premium to benefit from this guarantee.
Their money therefore remains available for their other expenses.
👉 Discover the rental guarantee
A particularly practical solution when you are arriving from abroad
For an expat, one of the main advantages is how simple the process is.
With Firstcaution, the rental guarantee application is made entirely online and in around 3 minutes. Once the application has been processed, Firstcaution sends the guarantee certificate to the property manager or the landlord.
This allows you to prepare your rental guarantee without having to multiply banking formalities at the very moment you are organising your move.
How does the Firstcaution rental guarantee work?
The process is simple.
1. You know the amount of your guarantee
The amount is usually stated in your lease agreement. For a residential property, it may not exceed three months’ rent.
2. You apply online
You provide the requested information and submit the documents needed for your file.
Registration takes around 3 minutes and the application is processed quickly.
3. You choose your solution
With Firstcaution, you can choose how your guarantee is made up depending on your situation:
- 100% guarantee, with no bank deposit;
- a combination of guarantee and flexible deposit;
- a 100% flexible deposit.
This flexibility means you can adapt your guarantee to your budget and to how your situation develops.
4. You choose your payment method
Firstcaution also offers two options:
- monthly payment, from CHF 8 per month depending on the guarantee chosen;
- annual payment.
With monthly payment, the premiums are spread over the year, which can be particularly practical when you have just settled in Switzerland and have many expenses.
5. You can benefit from Firstcaution cashback
Firstcaution is the only rental guarantee to offer a cashback system.
At the end of your contract, and subject to meeting the eligibility conditions, you can get back 20% of the premiums paid.
One more way to make your rental guarantee more flexible and advantageous in the long term.
👉 Discover the rental guarantee
The flexible deposit: another option with Firstcaution
Firstcaution does not only offer a solution without a deposit.
If you would still like to deposit part of your guarantee, you can opt for the flexible deposit.
You choose the amount you wish to deposit and the remaining part is covered by Firstcaution. The amount of the premium is then adjusted according to the guaranteed share.
Another particularity: depending on the applicable conditions, you can adjust the amount of your deposit during the term of the lease. Your money remains available and can be recovered, subject to the eligibility conditions.
This flexibility can be of interest to an expat whose financial situation changes after a few months in Switzerland.
What are the advantages of Firstcaution for an expat?
When you arrive in Switzerland, simplicity and flexibility can make a real difference.
No need to tie up several thousand francs
With a rental guarantee without a deposit, you do not need to block up to three months’ rent in a bank account. Your money stays available for your other expenses.
A 100% online process
The application can be made online, without having to go to a bank branch to set up a traditional deposit. Firstcaution states that registration takes around three minutes.
A solution adapted to your budget
You can choose between monthly or annual payment and, depending on the solution chosen, adjust the composition of your guarantee.
A guarantee recognised by property managers and landlords
Firstcaution is a Swiss insurance company authorised by FINMA and specialised in rental guarantees.
The guarantee certificate is sent directly to the property manager or the landlord.
A solution designed for newcomers
By preparing your rental guarantee online, you can focus on the other aspects of your relocation: finding your home, organising your move and starting your new life in Switzerland.
Bank deposit or Firstcaution: what is the difference?
Both solutions provide a guarantee for the landlord, but they work differently.
| Traditional bank deposit | Firstcaution | |
|---|---|---|
| Cash deposit | Yes | Not necessary with the no-deposit option |
| Money tied up | Yes | No with the no-deposit option |
| Dedicated bank account | Yes | No for the guarantee without a deposit |
| Monthly payment | No | Yes |
| Online application | Depends on the bank | Yes |
| Flexible guarantee | Limited | Yes |
| Possibility to combine deposit and guarantee | No | Yes, with the flexible deposit |
The choice naturally depends on your personal situation, your budget and the conditions of your lease.
Example: you are arriving in Switzerland for your new job
Let’s imagine that you arrive in Switzerland to start a new job and that you find an apartment with a rent of CHF 2'000 per month.
Your lease provides for a three-month guarantee, i.e. CHF 6'000.
With a traditional bank deposit, these CHF 6'000 are paid into a guarantee account in the tenant’s name and remain tied up for the duration of the lease, according to the applicable rules.
With a rental guarantee without a deposit from Firstcaution, you can choose not to tie up these CHF 6'000. You then pay a premium to benefit from the guarantee and keep your capital available for your relocation.
You can also choose a solution with a flexible deposit and decide the share you wish to deposit.
👉 Get a rental guarantee
FAQ: rental guarantee in Switzerland for expats
How much does a rental guarantee cost in Switzerland?
The cost depends in particular on the amount of the guarantee and the solution chosen. With Firstcaution, you can choose between monthly or annual payment. Monthly payment is offered from CHF 8 per month, according to the applicable conditions.
Can the rental guarantee exceed three months?
For a residential property, the landlord may not require a guarantee higher than three months’ rent.
Can you rent an apartment without depositing three months’ rent at the bank?
Yes. The rental guarantee is an alternative to the traditional bank deposit. With a solution such as Firstcaution, the tenant can benefit from a guarantee without tying up the full amount in a bank account.
Can you apply for a Firstcaution rental guarantee from abroad?
As the Firstcaution process is carried out online, it can be prepared remotely. The documents and conditions required for the application to be accepted nevertheless still apply.
Is Firstcaution a bank?
No. Firstcaution is a Swiss insurance company authorised by FINMA, specialised in rental guarantees.
Does the property manager have to take any additional steps?
With Firstcaution, the guarantee certificate is sent to the property manager or the landlord. The certificate remains valid for the entire duration of the lease, regardless of the choices and changes made to the flexible guarantee, according to the applicable conditions.
Why choose a rental guarantee without a deposit when you are an expat?
One of the main advantages is being able to keep your money available instead of tying up several thousand francs in a bank account. This can be particularly useful when settling in Switzerland, when expenses are numerous and the budget needs to stay flexible.
Housing and deposit
For the full picture, guides and checklists, read more at the Swiss Expat Guide
This article was written by Firstcaution, a Swiss Starter Pack partner. It is general information, not advice.