Rent-Deposit Guarantees

Rent deposits: Solidarity within a community

It is now standard practice among housing property owners to ask for rent deposits often amounting to as much as three monthly rents. Because many prospective tenants cannot afford this additional outlay, their chances of entering the market for rented accommodation are much reduced. Our «Solidarity Fund» was set up with the aim to remedy this situation. The solidarity fund is made up of the percentual payments from renters as well as by revenues. Any forfeited rent deposits are paid from the means of the solidarity fund.

What part does Stiftung Edith Maryon play?

Building on the notion of solidarity among tenants, the Foundation has created a fund enabling the guaranteed payment of rent deposits, thus offering owners of rental properties the required level of security.

Who is eligible to apply for a guaranteed rent deposit via Stiftung Edith Maryon?

The guarantee fund run by Stiftung Edith Maryon is open to all prospective housing tenants within the northwest of Switzerland provided they fulfill the conditions of the Foundation and accept their share of the costs (see details below).

How does the guarantee for rent deposits work?

Stiftung Edith Maryon assumes the guarantee for the rent deposit demanded by a landlord subject to the following contractually agreed conditions:

  • Payment of a one-off registration fee in the amount of CHF 200 to cover our mere administration costs.
  • For each deposit sum guaranteed, the applicant must uniquely pay 15% of that sum into the solidarity fund for the purposes of risk coverage. In the event of the forfeiture of a deposit, all parties to the guarantee are liable proportionately to the amount initially paid. According to the general rules, Stiftung Edith Maryon withdraws the guaranteed sum from the solidarity fund account for payment to the owner of the rented property.

How does one apply for a guaranteed rent deposit?

Applications for the guarantee of a rent deposit must be made in writing with the appropriate form, which can be obtained and completed directly in our secretarial office or else downloaded as a PDF file (see Download «Guarantee Application Form»). In addition to a fully completed application form, we require the following documents:

  • a photocopy of the tenancy agreement,
  • a photocopy of the applicant’s passport or ID card or ID card for foreign residents,
  • detailed excerpt from record of debt collection,
  • an account, where applicable, of receipt of Swiss supplementary benefits/AHV/IV/EL or ALE daily payments, or, in the case of salaried employees, the most recent pay slip, as well as
  • confirmation from the owner of previous rental property that notice of termination has been received.

Following review and clearance by Stiftung Edith Maryon and payment of the registration fee including required contribution to the solidarity fund, Stiftung Edith Maryon accepts the guarantee for the required rent deposit. In lieu of the rent deposit, the property owner is provided with the security of a written guarantee, and the renter with a respective copy.

Example

The monthly rent asked for an apartment is CHF 1500. The property owner expects a deposit of CHF 4500 (three months’ rent), payable into a blocked account. Provided the prospective tenant pays into the solidarity fund 15% of the required deposit sum (15% of CHF 4500 = CHF 675), Stiftung Edith Maryon stands guarantee for payment of the total deposit sum of CHF 4500.

Instead of having to find the total deposit of CHF 4500, the tenant must pay merely CHF 675 into the solidarity fund, as well as CHF 200 for the registration fee. The property owner must agree to accept a guarantee in place of a monetary deposit – the amount of which will, of course, be receivable in the case of a justified claim to the deposit.