Security deposit rules in Bangalore: how many months, refunds and deductions

How many months of security deposit is normal in Bangalore?

Bengaluru is known for higher deposits than most Indian cities. For flats, six to ten months' rent is commonly quoted as the local custom, as a Deccan Herald explainer notes. This is practice, not law, and the amount is open to negotiation.

Whatever you agree, write the exact amount, how it was paid and the refund terms into the rent agreement, and give a receipt for it.

Is there a legal limit on security deposit in Karnataka?

• The Model Tenancy Act, 2021 proposes a deposit of no more than two months' rent for homes and six months' rent for other premises (PRS summary). It is a template the Union Cabinet sent to states to adopt by passing their own law (PIB). It does not bind a state until that state legislates.
• Karnataka has not adopted it, as far as we can confirm. The Karnataka Rent (Amendment) Bill, 2025 only replaces jail terms in the Rent Act with money penalties. It does not mention deposits.
• The Karnataka Rent Act, 1999 (text on India Code) does not apply to many homes. Section 2(3) leaves out, among others, buildings for 15 years after construction or substantial renovation, and premises above a rent threshold. Most newer Bengaluru flats fall outside it.

Security deposit rules in India: state by state

Tenancy is a state subject, so deposit rules differ by state. In July 2022 the government told Parliament that Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam had revised their tenancy laws on the lines of the model Act (PIB). If your property is in one of those states, read that state's own Act; do not assume it copies the model's numbers. Elsewhere, the agreement usually decides.

When must a landlord refund the security deposit?

For most Bengaluru flats, no statute we found sets a refund deadline, so the agreement decides. The Model Tenancy Act's approach is a sensible benchmark even where it is not law: refund the deposit when the tenant hands over vacant possession, after due deductions (PRS summary).

• Write a deadline into the agreement. For example, "within 7 days of handing over vacant possession". A clear date prevents most arguments.
• Interest. Deposits in India are usually interest-free unless the agreement says otherwise.
• Pay by bank transfer or UPI and keep the reference number, so there is a record of what was refunded and when.
• If the tenant has not paid the last month, do not simply keep the deposit and stay silent. Write down the dues, deduct them in the settlement and share the calculation.

What can a landlord deduct from the deposit?

Give the tenant a written list of every deduction with the bill or photo behind it. A deduction you can show is one you rarely have to argue about.

How to document the condition of the property

1. 1

   At move-in, list and photograph everything

   Walk through with the tenant. Photograph each room, the fittings and any existing damage, and list the furniture and appliances in an annexure to the agreement. Both of you sign it. Our printable move-in and move-out checklist goes room by room.

2. 2

   Note the meter readings and keys

   Write down the electricity and water meter readings and the number of keys, cards and remotes handed over.

3. 3

   At move-out, inspect together

   Use the same list and take photos from the same angles. Note new damage, final meter readings and keys returned.

4. 4

   Send a written settlement

   Deposit amount, minus each deduction with its reason and evidence, equals the refund. Send it on WhatsApp or email so there is a record, then pay the balance.

Can the tenant adjust the deposit against the last months' rent?

Tenants often ask to stop paying rent for the last one or two months and "use the deposit". Many agreements say the deposit cannot be adjusted against rent without the owner's written consent, because it is meant to cover damage and bills found at move-out.

• If you agree, confirm it in writing: which months are adjusted, and that any damage or bills found later are still payable.
• If you do not agree, say so in writing early, and point to the clause in the agreement.
• Either way, keep the rent record clean. Receipts for every month the tenant did pay make the final settlement simple. If a tenant stops paying altogether, see our guide on a tenant not paying rent.

What if the landlord and tenant cannot agree?

Talk first, with the move-in and move-out photos in front of you. If that fails, either side can send a legal notice through a lawyer, and then go to court. A deposit is money held under the agreement, so the agreement's terms and your records decide most disputes. A lawyer can tell you which forum applies to your property.

Keep the deposit receipt, agreement and rent records together

Frequently asked questions