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Old 12.04.2009, 10:03
Snoopy Snoopy is offline
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Re: Swisskaution - the apartment deposit lenders thread

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I have bitched about the ludicrousy of the high rental deposits that Swiss landlords demand when I first arrived here too.

Unfortunately, yes it is true that the landlords can reject your application and choose someone else who has hard cash up front, rather than accepting Swisskaution. Landlords have the luxury of doing that due to the high demand for houses.
The maximum amount that a landlord can ask for is laid down by law. I have seen landlords asking for no rental deposit (!) and some asking for three and anything in between. In some cases landlords want to make sure that the funds are there should damage occur. I know of one case where the final bill was CHF 36'000 on a house where the monthly rent was CHF 4'500. Even with three months rent the landlord wasn't covered! I know, those are exceptions, but who can blame a landlord for wanting to protect his property? The fact is that even with a cash deposit the landlord doesn't benefit personally (as it is secured in an account in the tenant's name), but it may just appear easier to deal with and is something that the landlord is used to. Swisskaution obviously benefits the tenant (no need to tie up so much money), but what are the benefits to the landlord? If there is no incnetive to change, why should they?

As for turning an applicant down because of wanting to use Swisskaution, that is certainly a contributing factor. In the current market though they can turn you down for any reason they want. After all, they don't actually have to give you a reason and with so many people looking they just have to choose one lucky applicant and the rest are simply SOL...

It's tough, but in a seller's market you are unlikely to be able to change anything