A rent guarantee is a sum of money, generally equivalent to three times your monthly rent, which must be deposited and blocked in a bank account at the request of a landlord (property company). The money can only be released and returned when you leave your accommodation, after the final inventory and statement of state of repair (agreed by the tenant and landlord at the end of the tenancy) has been signed, provided that you have not caused any damage to the accommodation and you are not in arrears with your rent. Otherwise, the landlord can deduct the relevant amount from the sum deposited in the bank account to pay for the repairs or cover unpaid rent.
If you do not have sufficient funds for the initial deposit, there are companies that can provide a guarantee on your behalf; you will be required to pay an annual subscription (based on the amount of deposit required) to the company concerned. Most landlords are willing to use companies of this kind.
SwissCaution is one of the companies that provides this service.
You are strongly recommended to take out public liability insurance, to cover you if someone else suffers a physical injury or damage to property.
For more information about public liability insurance, click here.
Vaud canton requires you to insure your accommodation against fire with the organisation ECA. For more information, click here.
Finally, you are recommended to insure your personal belongings (furniture, clothes, computers, etc.) against damage or theft by taking out a household insurance policy.