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Old 04.08.2016, 13:09
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Swisscaution as landlord

Has anyone here accepted SwissCaution as a landlord and what was your experience? Would you recommend it?
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Old 04.08.2016, 13:32
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Re: Swisscaution as landlord

We did, twice so far. (my background: ex-hubby is the landlord of the appt. block here and I used to manage it).

Never had a problem with them. Both times when the tenants moved out again we handed the money back to SC. It is the tenants that paid more overall, as there is an added interest to pay to Swiss Caution for the service.
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Old 04.08.2016, 15:00
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Re: Swisscaution as landlord

What do you mean handed money back? Does it mean you actually get a deposit physically from SC to begin with?
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Old 05.08.2016, 02:41
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Re: Swisscaution as landlord

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What do you mean handed money back? Does it mean you actually get a deposit physically from SC to begin with?
No, not a deposit. The landlord gets a guarantee certificate for the deposit amount. The tenant pays an annual premium to Swiss Caution.

When the tenant moves out, if there are any claims against them for damages, the tenant must agree before Swiss Caution will pay the landlord. The payment is limited to the amount of the deposit.

The tenant must then reimburse Swiss Caution for the amount paid out on their behalf. If the tenant has insurance coverage, they have to deal with this directly.

In my experience, some landlords have been reluctant to accept Swiss Caution because unlike the traditional rental surety account, they do not see the deposit money sitting in a bank account. Some landlords also feel that a tenant is more likely to want to settle up after the handover knowing they will see most or all of their deposit back once they sign the bank release forms.

I have been asked by landlords what happens if a tenant fails to pay the annual premium after the initial guarantee certificate is issued. I imagine this can get rather complicated.
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Old 05.08.2016, 12:04
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Re: Swisscaution as landlord

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What do you mean handed money back? Does it mean you actually get a deposit physically from SC to begin with?

Here I am again.

Sorry for the lateness in my reply. Lappy only runs in the morning and I don't have a phone with internet connection.

I made a mistake I should've put "money" this way in my initial post. Apologies for the mix up.

We got a certificate that Swiss Caution will guarantee the asked deposit (here it is just one months rent we usually asked for) and also, if we would've had claims (damages, repainting etc) after the tenants moved out, they guaranteed to cover costs up to the mentioned amount on the certificate.
They would've paid us, and charged the money then to the insured person, so we wouldn't have had to deal with such stuff either.

It was actually hassle free this way, we didn't have to open, and subsequently close again, an account with a bank (as it is usually done).

SwissCaution is an insurance basically and is FINMA controlled and thus' it is the same as if you would've got a) the guarantee in writing from a regular bank or b) the money in cash, as you won't profit from it anyway, as you have to deposit it in a locked (?) account.


We were sceptical at first too (this was 10-12 yrs ago) but a friend of the ex hubby who owned a medium sized rental agency, recommended it. And he was right to do so

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Old 05.08.2016, 12:11
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Re: Swisscaution as landlord

Thanks. I would also be interested in anyone who actually claimed from SwissCaution. I guess everything works fine when you don't actually 'use' it.
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Old 05.08.2016, 12:52
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Re: Swisscaution as landlord

Hi

Actually found out that Swisscaution is quite expensive compared to other rental deposit insurances. http://www.moneyland.ch/en/rental-guarantee-comparison

The landlord can claim from Swisscaution only if the tenant agrees or the claim is enforceable: Art 5.1 https://static.swisscaution.ch/docs/..._PDF_BH_EN.pdf

However Swisscaution will add 100.- administrative cost on the reimbursement for the tenant.
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Old 05.08.2016, 23:45
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Re: Swisscaution as landlord

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Thanks. I would also be interested in anyone who actually claimed from SwissCaution. I guess everything works fine when you don't actually 'use' it.


I can't help you out here. None of my clients who used Swiss Caution to guarantee their deposits had any damages when they moved out.
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Old 06.08.2016, 12:03
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Re: Swisscaution as landlord

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I can't help you out here. None of my clients who used Swiss Caution to guarantee their deposits had any damages when they moved out.

same here
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Old 07.08.2016, 11:36
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Re: Swisscaution as landlord

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Has anyone here accepted SwissCaution as a landlord and what was your experience? Would you recommend it?
It seems no one has posted about a negative experience as a landlord.
Would I recommend Swiss Caution? I think when someone is moving locally and may have one deposit locked in a bank at least until the handover, then SwissCaution is very helpful.

I had one client where the landlord was opposed to Swiss Caution but the tenant really did not have available funds for the deposit. So we agreed that the tenant used deposit insurance until the end of December, then a rental surety account was opened at a bank.

The tenant was planning on staying long term. When you add up the cost of the deposit insurance over 5 years, for example, depending on the deposit amount it can get quite expensive.

When these tenants moved they got all of their deposit back.

If I were to rent out my own property, I would prefer the deposit in a bank account. My reason is that I prefer to deal directly with a tenant at the final inspection, and if there is damage, an insurance company might get involved. As the tenant must agree in all cases, I see no advantage in SwissCaution. In fact, for the tenant, they may have to come up with money to reimburse SwissCaution, whereas with the deposit in the bank the money is readily available.
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Old 07.08.2016, 13:56
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Re: Swisscaution as landlord

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In fact, for the tenant, they may have to come up with money to reimburse SwissCaution, whereas with the deposit in the bank the money is readily available.
Yes, and if the tenant didn't have the money saved up for the deposit in the first place, he/she might go on to not save it up during the tenancy, either.
Then, if there are damages, and the money is not readily available, the tenant ends up with a debt (at an uncomfortable interest rate) to SwissCaution.

Moreover, I have repeatedly heard the misconception that if there were to be any damages, then jolly old SwissCaution will just cover them. A tenant who has believed this misinformation, and then later finds him/herself in debt to SwissCaution, could potentially try to cause other problems for a landlord.

A tenant whose deposit is, on the other hand, safe and sound in a blocked bank account, is likely to try to give the rented object back in good condition, so as to regain access to that deposit.

I like your solution, though, Mrs. Doolittle, of using SwissCaution only as a temporary measure for a defined period, especially when everyone is sure that the cash for a deposit into the bank will soon be available, such as from real salary payments.
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Old 23.08.2016, 19:24
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Re: Swisscaution for subletting

We are going to sublet our apartment and the lessor has asked if he can use Swisscaution. As the tenant (rather than landlord) renting it out, is there any reason not to use Swisscaution?
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Old 23.08.2016, 20:02
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Re: Swisscaution for subletting

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We are going to sublet our apartment and the lessor has asked if he can use Swisscaution. As the tenant (rather than landlord) renting it out, is there any reason not to use Swisscaution?
As you are the landlord in the legal relationship with your tenant (your tenant being the subtenant in the eyes of your landlord), you can use every method of securing a deposit you wish. I'd recommend using the bank account deposit, you have a year after your tenant (the subtenant) moved out to sort out if you need to go after them for something, and in that year you can block the payment of the deposit to your tenant. After the one year elapsed, the money will be paid to the subtenant if he asks for a release of the money and you have not made any claims.

Accepting Swisscaution might bear the risk that they stop covering damages if the tenant stops paying their fees.
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Old 23.08.2016, 20:06
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Re: Swisscaution as landlord

Yes, I hadn't thought of that. I looked at the site and it seems to be generally about what's good for the lessee, nothing about the landlord. Maybe I can try asking them.
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