Deposit Refunds

The Standard Security Deposit

Historically, Bengaluru landlords have demanded 10 months' rent as a security deposit. However, this has been changing. Today, it is increasingly common to see deposits ranging from 3 to 6 months' rent, depending on the area, the property's condition, and negotiation.

The deposit is meant to protect the landlord against unpaid rent, unpaid utility bills, or damage to the property beyond normal wear and tear.

The "Painting Charge" Deduction

The most common friction point between landlords and tenants in Bengaluru is the painting charge deduction when moving out.

• The Standard Practice: It is an almost universally accepted standard in Bengaluru that landlords deduct 1 month's rent (or a fixed agreed-upon sum) from the security deposit towards repainting and deep cleaning the house for the next tenant.
• Is it legal? It is legal if (and only if) it is explicitly written into the rent agreement. This is why having a clear clause regarding painting deductions is crucial.

Normal Wear and Tear vs. Damage

Landlords cannot deduct money for "normal wear and tear." This includes fading paint, minor scuff marks on floors, or aging fixtures.

However, they can deduct for "damages." This includes broken tiles, smashed mirrors, large holes in the wall, or ruined appliances (if provided). To avoid disputes:

• Take detailed photos and videos of the property on the day you move in.
• Share these photos with the landlord via email or WhatsApp to establish a baseline of the property's condition.
• Do the same on the day you move out.

When should the deposit be refunded?

The timeline for the refund should be clearly stated in the rent agreement. Typically, agreements specify that the remaining security deposit (after agreed deductions and pending utility bills) will be refunded:

1. On the day of handing over the keys.
2. Or, within 7 to 14 days of vacating the premises.

It is standard practice for the landlord to hold back a small amount (e.g., ₹2000 - ₹5000) for a month to clear the final electricity and water bills, returning the balance thereafter.