What happens to the deposited deposit if the property management changes during the rental period?

Depot in case of change of administration

If you change property management, nothing physically happens to your rental deposit. The money remains in the existing deposit account with the bank, which must be in your name. The old administration simply transfers the administrative powers and the corresponding account details to the new administration. The new administration legally assumes the position of the old one and assumes the right to sign for later approval. It is generally not necessary to create a new deposit or sign from the tenant.

The legal fortress: The account in the name of the tenant

The most important protective factor in Swiss tenancy law is the statutory provision of Article 257e of the Code of Obligations. This states unequivocally that a rental deposit must be deposited with a bank in a savings account in the tenant's name. This is the decisive difference to many other countries, where the landlord often transfers the money to his private account.

Since the account is legally yours, an administration — whether the old or the new one — cannot simply withdraw the money or transfer it to another account. The money is “parked” at the bank. The bank acts as an independent body that only makes a payment if either both parties (tenant and administration/landlord) sign or if there is a final judgment or payment order. A change of administration does absolutely nothing to change this ownership structure. The account remains valid, the IBAN remains the same, and your name remains as the account holder at the top right of the statement.

Who is actually my contract partner?

A common misconception stems from the fact that tenant often regard the administration as their actual contractual partner. Legally speaking, however, the administration is only the owner's representative. Your rental agreement is between you and the homeowner (or Immobilien-AG).

If the administration changes, the owner simply terminates the service contract with company A and concludes a new one with company B. The rental agreement between you and the owner remains completely unaffected. Since the deposit is security for the owner's claims under this rental agreement, the “care” of this security is only transferred when the administration changes. The new administration receives from the owner the power of attorney to settle all tenancy issues on behalf of the property — including the subsequent release or use of the rental deposit.

The administrative relay run in the background

When an administration hands over a mandate to a new one, a so-called data transfer takes place. In 2026, this will usually be done fully digitally via standardized real estate software interfaces. Not only are rent amounts and notice periods transmitted, but also the details of the deposit accounts.

The old administration informs the bank that the mandate has expired and company B is now the new administration authorized to represent the property. The bank checks the owner's corresponding powers of attorney for the new administration and stores them in its system. As soon as this process is completed, the new administration can legally sign the necessary approval forms when the tenant moves out later. For you as a tenant, this process is usually invisible and requires no action on your part.

Do I have to sign new documents?

In nine out of ten cases, the answer is no. Since the account already exists and is in your name, there is no need to reopen it. However, there are rare situations in which a new administration urges to transfer the rental deposit to another bank — for example, because it keeps all its holdings there and thus simplifies administration.

In such a case, you will be asked to sign a form to close and reopen an account with the partner bank. Important to know: You are not required to do so. If you are satisfied with the current bank or shy away from administrative work, you can insist that the deposit remains where it is. However, since the administration represents the owner's right to sign, such a change is often unproblematic as long as it is ensured that it is a blocked account in your name again. In this case, make sure that the opening confirmation from the new bank is sent to you promptly.

Your control options: Trust is good, proof is better

Even though the system is secure, a certain amount of initiative is recommended in 2026 in order to be prepared for the day you move out later. When you receive notification of the change of administration, this is a good time to review your own records.

Check whether you still have the original deposit receipt from the bank. This document contains the account number and the amount. Should there be any ambiguities when moving out years later — for example because the new administration claims that it does not find any documents about a custody account — this document is your most important proof. It is also absolutely legitimate to briefly ask the new administration whether the deposit amount has been correctly entered in their system. A short email asking for confirmation of the deposit amount provides clarity and signals to the new administration that you have an eye on your finances.

What happens in the event of administrative insolvency?

A horror scenario for many tenant is the bankruptcy of the property management company. But it is precisely here that the genius of the Swiss system is evident. Since the money is in an account that is in your name at a bank, the rental deposit is never part of the administration's bankruptcy estate.

Even if the administration closes the doors from one day to the next and all computers are confiscated, your money is safe in the bank. In this case, the owner of the property would have to commission a new administration or sign the approval himself. The risk of default on the part of the administration therefore has zero impact on the security of your portfolio. Only the credit rating of the bank itself could pose a theoretical risk, with rental deposit accounts in Switzerland being protected by deposit insurance.

The excerpt: Who releases the money?

When you finally move out, the administration is responsible, which holds the mandate at the time the apartment is taken over. It doesn't matter whether you deposited the portfolio with a completely different company ten years ago. On the basis of the acceptance report, the current administration checks whether there is damage or whether rent is still outstanding.

If there are no claims, the new administration signs the bank's approval form. Since it is the legal successor of the old administration, the bank easily accepts this signature. Should the administration refuse to release the money, the usual rules apply: After one year without legal action by the administration against you, you can also claim the money from the bank without signing it, as described in previous guides.

Conclusion: Continuity despite name change

What happens to the portfolio when there is a change of administration? In short: Nothing serious. The legal guidelines in Switzerland are set in such a way that your money remains protected, no matter how often responsibilities in the real estate management office change. The separation between account holder (tenant), beneficiary (owner) and representative (administration) is the basis of this stability.

In summary, it can be stated that a change in administration is primarily a change in communication. Your portfolio remains a secure constant in a blocked account. If you keep your deposit receipt carefully and kindly follow up if anything is unclear, you don't have to worry about your rental deposit. In the real estate market of 2026, transparency is the key to trust — and the legal regulation of the rental deposit is one of the most transparent and secure instruments that Swiss law has to offer.

glossary

• Art. 257e OR: Central legal provision on rental deposit.
• Rent deposit savings account: Bank account that is in the name of the tenant and is blocked.
• delegate: Legal construct in which the administration acts on behalf of the owner.
• Deposit certificate: Bank document confirming receipt and blocking of the rental deposit.
• Deposit insurance: Protection of bank deposits in the event of insolvency of the financial institution.
• IBAN: International account number that does not change in the event of a change of administration.
• power of attorney: Document that allows the new administration to also own the deposit account.