What is the security deposit and what is the maximum a landlord can ask for?

The security deposit (or bond) is a sum of money that the tenant pays to the landlord to ensure compliance with the contract. Federal law sets a mandatory maximum: the deposit cannot exceed 3 months of rent. If the landlord asks for more, the tenant has the right to dispute. The deposit must be deposited in a restricted current account, in the tenant's name, and must be returned at the end of the contract — net of any proven and documented damages.

How do I answer the initial fee if I consider it too high?

You have 30 days from receipt of the contract to appeal. Send the landlord a registered letter stating that you dispute the rent. Send a copy to the leasing conciliation authority of your canton (Inner Appenzell has a designated authority). The authority will assess the fee on the basis of data from the Federal Statistical Office (FSO) and comparable fees in the area. You do not need a lawyer; the procedure is free or with a minimum fee.

What is the procedure if the landlord does not use the official cancellation form?

If the official form is absent, the cancellation is automatically void. The tenant does not have to do anything: they continue to live and pay the rent regularly. If the landlord attempts to evict the tenant anyway, it is the landlord who risks criminal proceedings. The valid cancellation must always use the official form recognized by the canton of Appenzello Interno.

How long does it take the conciliation authority to resolve a dispute?

Times vary by canton and complexity of the case. On average, a lease conciliation procedure takes 2-4 months. Contact the conciliation office of Appenzello Interno directly for precise information on the current times. If a party does not accept the decision, the dispute may continue in civil court, but this rarely happens.

Who pays the costs of the conciliation authority?

In Switzerland, access to lease conciliation is free of charge or with a minimum fee (to be borne by the applicant tenant, rarely more than CHF 50-100). If the conciliation fails and the case goes to civil court, the legal costs (lawyer, court) can be significant, but typically the loser covers both sides. For specific details in Appenzello Interno, ask your local conciliation office.

Internal Appenzello lease law: fees and conciliation (cross-border guide)

Di Redazione Frontaliere Ticino · Published on 26 August 2026

Complete guide to Swiss federal lease law: 3 months maximum security deposit, cancellation and conciliation procedure in Appenzello Internno.

Context

In brief

The security deposit cannot exceed 3 months' rent and must be held in an account in the tenant's name.
The landlord's notice of termination must use the official cantonal form to be valid.
Disputes regarding the initial rent must be submitted to the conciliation authority within 30 days.

Key facts

What: Federal rental law (Code of Obligations, articles 253 et seq.)
Where: Applicable throughout Switzerland, including the Canton of Appenzell Innerrhoden.
Security deposit: Maximum 3 months' rent, held in a blocked account in the tenant's name.
Notice of termination: Must be given using the official cantonal form.
Dispute: 30 days to appeal to the conciliation authority.
Jurisdiction: Each canton determines its own cantonal forms and procedures.

In Switzerland, rental law is a federal matter: the Code of Obligations (CO) uniformly governs lease agreements, deposits, notices of termination, and appeal procedures in all cantons, including Appenzell Innerrhoden. This means the fundamental rules are the same from Geneva to Lugano to Schaffhausen. What changes is the practical application: each canton provides its own forms, defines the competent conciliation authorities, and establishes procedural timelines.

Anyone renting or subletting in Appenzell Innerrhoden thus operates within a dual framework: strict federal protection at the core (deposits, notices of termination, disputes) and cantonal administration regarding form (documents, local authorities, practices).

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Operational details

How Dispute Works in Practice

The dispute mechanism is slimmer than it looks. The tenant who disputes the initial fee should not contact a lawyer immediately: the conciliation authority is free and accessible (with minimal costs if applicable). The Inner Appenzell canton, like each canton, has designated a local authority — bureau or collegiate body — competent to receive appeals on initial fees and disputes on deposits, cancellations, damages.

The first step is to inform the landlord in writing, within 30 days, that the rent is disputed. No specific form is required for the dispute itself: a registered letter to the landlord with the statement “I contest the initial fee of CHF [amount] as disproportionate to the comparable fees” is sufficient. A copy of this letter must then be sent to the cantonal conciliation authority.

The authority examines the dispute and asks the landlord for clarification. Evaluate the fee on the basis of public data: statistical surveys of the Federal Statistical Office (FSO), regional reports, comparable with similar properties. If the landlord does not provide convincing justifications, or if the rent is objectively outside the local parameters, the authority may order a reduction. If the landlord disputes, the dispute continues in civil court — but rarely: most cases end in conciliation.

A second scenario concerns the deposit. If

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Key points

Step-by-step procedure for appeal

Anyone intending to appeal to Appenzell Innerrhoden must follow these steps.

Step 1: Gather documentation (days 1-7) Retrieve the rental agreement, the initial rent communication, and any deposit treatment documents. Note the date of receipt of the contract and/or rent request. The 30-day period begins from that moment.

Step 2: Validate the claim (days 8-20) Check online on the website of the Cantonal Administration of Appenzell Innerrhoden what the average rents are in the area (city, district, street) using BFS data or local publications. If available, obtain the cantonal report on rents. If your rent is significantly higher (>15-20% of the average), the dispute is well-founded.

Step 3: Send a letter of dispute (days 21-29) Send a registered letter to the landlord stating: 'I dispute the initial rent of CHF [amount] set on [date]'; 'I consider the rent disproportionate compared to comparable rents in the area'; 'I refer the matter to the cantonal conciliation authority.' Keep the receipt of the registered letter.

Step 4: Contact the conciliation authority (within the 30th day) Contact the conciliation office of your canton (Appenzell Innerrhoden: check name and contacts on the cantonal portal). Provide: contract, dispute letter, proof of sending to the landlord, BFS or comparable documentation. A lawyer is not required. The procedure is free or has a minimal fee (under CHF 100).

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Frequently Asked Questions

What is the security deposit and what is the maximum a landlord can ask for?: The security deposit (or bond) is a sum of money that the tenant pays to the landlord to ensure compliance with the contract. Federal law sets a mandatory maximum: the deposit cannot exceed 3 months of rent. If the landlord asks for more, the tenant has the right to dispute. The deposit must be deposited in a restricted current account, in the tenant's name, and must be returned at the end of the contract — net of any proven and documented damages.
How do I answer the initial fee if I consider it too high?: You have 30 days from receipt of the contract to appeal. Send the landlord a registered letter stating that you dispute the rent. Send a copy to the leasing conciliation authority of your canton (Inner Appenzell has a designated authority). The authority will assess the fee on the basis of data from the Federal Statistical Office (FSO) and comparable fees in the area. You do not need a lawyer; the procedure is free or with a minimum fee.
What is the procedure if the landlord does not use the official cancellation form?: If the official form is absent, the cancellation is automatically void. The tenant does not have to do anything: they continue to live and pay the rent regularly. If the landlord attempts to evict the tenant anyway, it is the landlord who risks criminal proceedings. The valid cancellation must always use the official form recognized by the canton of Appenzello Interno.
How long does it take the conciliation authority to resolve a dispute?: Times vary by canton and complexity of the case. On average, a lease conciliation procedure takes 2-4 months. Contact the conciliation office of Appenzello Interno directly for precise information on the current times. If a party does not accept the decision, the dispute may continue in civil court, but this rarely happens.
Who pays the costs of the conciliation authority?: In Switzerland, access to lease conciliation is free of charge or with a minimum fee (to be borne by the applicant tenant, rarely more than CHF 50-100). If the conciliation fails and the case goes to civil court, the legal costs (lawyer, court) can be significant, but typically the loser covers both sides. For specific details in Appenzello Interno, ask your local conciliation office.