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  #21  
Old 06.11.2008, 17:02
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Re: Security deposit insurance

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Are you sure? Last time I had a deposit, it was separate bank account in my name, but blocked until the landlord would give the OK to the bank to release it. No interest for them...

Thats what i meant , you get the interest not the landlord.
And yes its kept in a seperate account thats blocked. Using Swisscaution also avoids having to open the account and go through the procedures

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  #22  
Old 06.11.2008, 17:05
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Re: Security deposit insurance

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Yeah, I really hope it works for you, but just be prepared in case they say no!

But in all honesty, Swisskaution is not as good as cash from the landlord/agent's perspective. With 40 other applicants this factor alone could be enough to decrease your bargaining position.

I hope it all works out, I totally agree that the money is better spent elsewhere but I have decided to look at it as a sort of forced savings, so when we do go home (and leave a beautifully clean apartment!) we will have some cash in the bank!

Hate to disagree with you here. But cash in an account or a swisskaution is no different to a landlord, he gets his money either way.
The only difference to you is that you free up your money or you get interest on the amount deposited. To the landlord he simply has a guarantee, which is all he really wants. Whether he accepts it or not is a different matter
:P
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  #23  
Old 06.11.2008, 17:17
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Re: Security deposit insurance

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That's a matter of fact, and also the reason why security deposit insurance offers are often aimed at less financially able tenants who rent from landlords for which a security deposit insurance is still better than no protection against tenants unable/unwilling to pay for damages at all. Given a choice, most landlords will prefer tenants able to make their security deposit by themselves for obvious reasons … in addition, security deposit accounts are a welcome business for Swiss banks, especially banks facing some serious cash outflow!

Martin
Dont get me wrong.

If I dirtied my walls or made a hole in them, i will have no qualms about paying up for the damages. But being taken advantage of, is something i am sure most of us foreigners, take issue with. Not tarring everyone with the same brush but the horror stories (exaggerated or not) are making me a nervous wreck!

And if anyone has spare cash of about 9-10K to put into the bank as security deposit, hats off!
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  #24  
Old 06.11.2008, 17:38
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Re: Security deposit insurance

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If I dirtied my walls or made a hole in them, i will have no qualms about paying up for the damages. But being taken advantage of, is something i am sure most of us foreigners, take issue with. Not tarring everyone with the same brush but the horror stories (exaggerated or not) are making me a nervous wreck!
I know the feeling, I was also anxiously waiting for the OK from my landlord after his walk-through when I moved some time ago. In case of doubt, don't hesitate to seek advice from competent Swiss colleagues and friends or qualified professionals (e.g. from the Swiss Tenants' Association) if you face any serious problems with a landlord. I've the advantage of being in the legal profession, that makes most people think twice in such matters …
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And if anyone has spare cash of about 9-10K to put into the bank as security deposit, hats off!
That's the main (and legitimate) reason why security deposit insurances have become much more common in Switzerland, and it's also the reason why a landlord with choice will prefer tenants with the financial capacity to make a security deposit – hats off to wealthy tenants!

Martin
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  #25  
Old 06.11.2008, 17:46
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Re: Security deposit insurance

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it's also the reason why a landlord with choice will prefer tenants with the financial capacity to make a security deposit – hats off to wealthy tenants!

Martin
Isnt a credit report sufficient to prove that you are credit worthy? I guess people being brand new to Switzerland dont have that luxury
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  #26  
Old 06.11.2008, 18:54
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Re: Security deposit insurance

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Isnt a credit report sufficient to prove that you are credit worthy? I guess people being brand new to Switzerland dont have that luxury
I am Swiss and have lived in/near Zurich for 30 years. Never quarreled with any landlord. My present landlord wants 3 months deposit. So please do not feel you are discriminated as a newcomer. It is just the way things are done here.
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  #27  
Old 06.11.2008, 18:58
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Re: Security deposit insurance

Same here - that's why I used the deposit guarantee... (although I'm not quite that old )

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I am Swiss and have lived in/near Zurich for 30 years. Never quarreled with any landlord. My present landlord wants 3 months deposit. So please do not feel you are discriminated as a newcomer. It is just the way things are done here.
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  #28  
Old 06.11.2008, 19:13
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Re: Security deposit insurance

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Isnt a credit report sufficient to prove that you are credit worthy?
There's no generally acknowledged credit reporting system in Switzerland …
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I guess people being brand new to Switzerland dont have that luxury
… and newcomers to Switzerland were likely not to have a credit report anyway.

I'm well aware of the fact that the rental security deposits common in Switzerland cause financial problems for many tenants. From a landlord's perspective, however, it's reasonable to ask for a security deposit since debt enforcement and tenant eviction are rather time-consuming and expensive legal proceedings in Switzerland. Why shouldn't a landlord try to get as much security as possible?

Martin
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  #29  
Old 06.11.2008, 19:34
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Re: Security deposit insurance

I must be confused with something else then - I saw someone coming with a piece of paper stating that they've no outstanding bills or something yesterday? Looked really official with a seal and all!
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  #30  
Old 06.11.2008, 19:44
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Re: Security deposit insurance

Yes, I was going to mention that - there is the "Betreibungsauszug" (record of debt collection) which states wether anybody had to contact the authorities to get any outstanding debts from you. Ideally this would be a blank sheet, stamped by your municipality... for approx CHF 20.- in "Stamp fees"

Which doesn't say much when you just got here unfortunately. But it is generally accepted here to show that you're paying your debts.

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I must be confused with something else then - I saw someone coming with a piece of paper stating that they've no outstanding bills or something yesterday? Looked really official with a seal and all!

Last edited by herc82; 06.11.2008 at 19:46. Reason: trying to sound coherent...
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  #31  
Old 06.11.2008, 22:27
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Re: Security deposit insurance

I am currently thinking of moving and the only thing thats stopping me doing it soon is the fact that I will have to save up the deposit again and I understand it can take a few months to get the original one back from my current landlord .....so this idea really appeals !

Can anyone come up with a solid reason not to do this ? Get my deposit back ....which will provide the cash for the new deposit ? obviously I realise that I may have to pay out for any damages in my current place but only been here a year , live on my own so after cleaners have been in I dont anticpate anything major ....any thoughts anyone ?

I'm thinking the original deposit would cover all expense related to the move ....just about anyway ..
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  #32  
Old 06.11.2008, 22:28
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Re: Security deposit insurance

I'm well aware of the fact that the rental security deposits common in Switzerland cause financial problems for many tenants. From a landlord's perspective, however, it's reasonable to ask for a security deposit since debt enforcement and tenant eviction are rather time-consuming and expensive legal proceedings in Switzerland. Why shouldn't a landlord try to get as much security as possible?

Martin[/quote]

-------------------------------

Why ? Because in most countries the deposit is 1 month and not a staggering 3 months. The deposit is high for many newcomers to Switz, especially since if they are here temporarily, chances of getting the deposit back in full are low because

a. lot of foreigners are taken advantage of
b. the landlord has 1 year to return the deposit

Given the rents and the potential 3 month deposit, it is a lot to lose.
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  #33  
Old 06.11.2008, 22:42
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Re: Security deposit insurance

A three month deposit is the norm here. And giving three months (at least) notice also. But you have rights here too, it's not all in favour of the landlord, nor is it all stacked against the tenant.
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  #34  
Old 06.11.2008, 23:50
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Re: Security deposit insurance

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I must be confused with something else then - I saw someone coming with a piece of paper stating that they've no outstanding bills or something yesterday? Looked really official with a seal and all!
You're probably referring to the Betreibungsregisterauszug (excerpt from the debt enforcement register). Such an excerpt should not be mistaken for a credit record à la USA; a clean excerpt is helpful, however, a clean excerpt doesn't proof solvency, especially not for foreigners coming to Switzerland. BTW, one of my major issues after moving to the USA was to build up a credit history in order to get a positive credit record!
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Why ? Because in most countries the deposit is 1 month and not a staggering 3 months. The deposit is high for many newcomers to Switz, especially since if they are here temporarily, chances of getting the deposit back in full are low because

a. lot of foreigners are taken advantage of
b. the landlord has 1 year to return the deposit

Given the rents and the potential 3 month deposit, it is a lot to lose.
The security deposit is a last resort for the lender and it's usually paid back a few weeks for two mains reasons: It's (i) very difficult to cause tenant damages amounting to the sum of the security deposit and (ii) most tenant damages are covered by private liability insurance anyway.

The one-year term you mentioned is not an obligation for the landlord but a right for the tenant; a tenant can request the bank where his security deposit account is located to release the deposit if the respective landlord hasn't take legal steps against the tenant for one year after moving out.

I don't understand the whine about foreigners being taken advantage of – today's immigration consists mainly of highly qualified professionals who should be able to claim their rights. They should further be able to negotiate an adequate compensation covering costs such as the security deposit for their rental apartment.

Martin
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  #35  
Old 07.11.2008, 00:01
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Re: Security deposit insurance

P.S.: Art. 257e of the Swiss Code of Obligations for your information:


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  #36  
Old 07.11.2008, 20:02
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Re: Security deposit insurance

The one-year term you mentioned is not an obligation for the landlord but a right for the tenant; a tenant can request the bank where his security deposit account is located to release the deposit if the respective landlord hasn't take legal steps against the tenant for one year after moving out.

I don't understand the whine about foreigners being taken advantage of – today's immigration consists mainly of highly qualified professionals who should be able to claim their rights. They should further be able to negotiate an adequate compensation covering costs such as the security deposit for their rental apartment.

Martin[/quote]

good points mentioned, in terms of claiming rights...negotiating to cover costs such as the security deposit is probably something which can work for the first job in Switz.

I see the 1 year clarification you made. The fact remains though that the tenant has to potentially wait 1 year to get it back...sure could be less. The deposit for the new flat has to be paid upfront though. Not always that one can quickly get the deposit back and use it to pay the new one.

There are several stories on the forum itself...
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  #37  
Old 20.06.2010, 12:18
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Moving out with SwissCaution (or similar):

Moving out with SwissCaution (or similar): my question is, when does our libaility to SC get cancelled? To we all share the same 1 year liability?

Cheers
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  #38  
Old 15.07.2010, 20:05
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Re: Moving out with SwissCaution (or similar):

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Moving out with SwissCaution (or similar): my question is, when does our libaility to SC get cancelled? To we all share the same 1 year liability?

Cheers
Yes, it will get cancelled once you inform SwissCaution of the move and return them the lessor’s guarantee certificate that you would have gotten from them initially when you signed up. Returning the cert to them absolves you of paying any more premiums on that said lease.

You will need a new certificate for a new lease.
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  #39  
Old 24.02.2012, 11:06
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Re: Security deposit insurance

Sorry to drag up an old thread but I am in this same situation right now.
I moved to Zurich this year from uk and am having to pay 3 moths deposit plus the first months rent by April 1st.

I would just like to know what people would recommend in my situation.

Should I pay the full amount cash or take out this insurance and free up money for furniture?

I'm curious as to what most of you did when in the same situation. I can afford the cash but most likely will take some time to be as to afford furnishings if I take this route.

Appreciate your feedback
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  #40  
Old 24.02.2012, 14:56
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Re: Security deposit insurance

We used Swiss Caution for our rental gaurntee. The whole process is very simple. You can get an estimate online at swisscaution.ch
Some employers will provide a rental security deposit, have you checked with your employer ?
The biggest disadvantage with Swiss caution or any other security deposit insurance, is that at the end of your lease you don't get any money back. If you put your own money into a security deposit account at the end of your lease you get your money back less any damages.
If you want to avoid a huge bill from your owner for damages, hire someone to do the repairs yourself. Even better, check with your insurance company if they will cover the cost. When we moved out of our previous apartment the walls needed to be repainted due to some damages. The estimates were exorbitant and the insurance covered everything.
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