Agency fees when renting in Switzerland: do you actually have to pay them?

When signing a lease, many property management agencies charge "dossier fees", "application fees" or "lease set-up fees", often between CHF 100 and CHF 300. Most people pay without asking questions, for fear of losing the flat. Yet these fees are far from always owed. This guide sorts out what is legitimate, what is contestable and how to respond.

At a glance

In Switzerland, no federal law explicitly prohibits charging the tenant lease conclusion fees, but finding a tenant and drawing up the lease is part of the agency's work, already paid for by the landlord.
Application fees (paying simply to submit a file) are considered undue by tenant associations.
Rules vary by canton: in the canton of Vaud, lease set-up fees are in principle the landlord's responsibility, but a cantonal agreement tolerates charging them to the tenant.
You can request the legal basis in writing, pay under reservation, or contest the charge with the help of the tenant association in your canton.

What you need to understand

The property management agency works for the landlord, not for you. Publishing the advertisement, reviewing applications, drawing up the lease and having it signed are all part of the day-to-day management of the property. That management is remunerated through fees (often 3.5 to 5% of rents collected), passed on in the rent you pay. Charging you again for those same tasks amounts to paying for them twice.

On the federal law side, the Code of Obligations does not list permitted fees and does not explicitly prohibit dossier fees. Two articles do, however, frame the practice:

Art. 254 CO: "tied transactions" are void. You cannot make the conclusion of a residential lease conditional on a commitment by the tenant without a direct link to the use of the dwelling. Tenant associations rely on this principle, among others, to contest certain fees.
Art. 257e CO: the security deposit (rent guarantee) is capped at three months' rent and must be held in a blocked bank account in your name. It remains yours and is returned to you at the end of the tenancy. It is not a fee.

Dossier fees, security deposit, first month's rent: do not confuse them

Not everything you are asked to pay at signing is illegitimate. You need to distinguish:

Legitimate:

The first month's rent (and ancillary charges) in advance.
The security deposit: blocked account in your name, three months maximum.

Often contested or undue:

Application fees: paying solely to submit a dossier.
Dossier fees / lease set-up fees: charged for drafting and signing the contract.
Fees for a tenancy confirmation requested from your agency.
An "indemnity" claimed because you withdraw from a property before any signature.

What the law says, canton by canton

Tenancy law is federal, but cantonal rules and practices specify how costs are allocated. A few reference points:

General principle

There is no explicit federal prohibition, but since these tasks are already covered by the management fees, ASLOCA (the Swiss Tenants' Association) considers these fees not owed by the tenant.

Canton of Vaud

Art. 8 of the Vaud Tenancy Rules and Practices (RULV) places lease set-up fees on the landlord. The parties may agree otherwise, and a cantonal agreement between ASLOCA, the Chambre vaudoise immobilière and USPI tolerates charging them to the tenant. In practice, amounts of CHF 100 to nearly CHF 300 are observed. It is therefore a grey zone that is locally accepted.

Canton of Geneva

For subsidised housing (LGL / LGZD), lease preparation fees and those for amendments are the landlord's responsibility. More broadly, the Ville de Genève and ASLOCA Geneva recall that these fees should not be borne by the tenant.

Elsewhere in Switzerland

Practices differ from canton to canton. The useful reflex: check the tenancy rules and practices of your canton, or ask the local tenant association.

What to do

Request the legal basis in writing: "On what basis are these fees being charged to me?" A simple request often makes the agency back down.
Do not pay application fees for the mere act of submitting a dossier: this is the most clearly undue charge.
Distinguish the security deposit (legal, recoverable) from dossier fees (contestable).
If you are charged anyway, you can pay "under reservation of reclaim" (state it in writing) and then request a refund, or contest before paying.
Contact the tenant association in your canton: legal advice, template letters and support to contest charges.
Keep a record of everything: the invoice, the lease, receipts and written exchanges.

Let's be realistic: refusing to pay when the flat has (almost) just been offered to you is uncomfortable. Weigh up the balance of power. But politely asking for the legal basis carries no risk and often clarifies the situation in your favour.

Common pitfalls

Confusing the security deposit with dossier fees: the former is legal, the latter are debatable.
Paying out of habit without asking for the legal basis.
Assuming the rules are the same everywhere: cantonal rules genuinely vary.
Paying an "indemnity" after withdrawing before any signature: without a signed contract, there is in principle no obligation, even if nuances exist depending on the commitments made.
Keeping no written record of the amounts requested and paid.

Where to find official information

ASLOCA · Are all these charges really the tenant's responsibility?
Ville de Genève · "My agency is asking me for CHF 150 to conclude my lease — is that legal?"
Code of Obligations (Art. 254 and 257e)
ch.ch · Housing
Your canton's tenant association (search "tenant association" + your canton's name).

How Admini can help

When dealing with a property management agency, your best asset is a clean file and evidence at hand:

Centralise your lease, the property handover report, receipts and correspondence with the agency in one place.
Find in a few seconds the proof of payment or the exact clause of your contract when you need to contest something.
Prepare a clear dossier to send to the tenant association or a conciliation authority, without having to chase your own paperwork.
Get reminders for deadlines related to your tenancy.

The point is not to replace legal advice, but to give you the means to ask the right questions and keep control of your documents.