Security deposits in India — what's fair, and getting yours back
By Smart Kiraya Team · Updated
Quick answer
Deposits vary wildly by city — from 1–3 months' rent in Delhi-NCR and Pune to 5–10 months traditionally in Bengaluru. Fair deductions are unpaid rent/bills and damage beyond normal wear and tear. Your protection is paperwork: an agreement that states the deposit terms, plus move-in photos.
What's normal, city by city
There's no national rule — custom rules. Delhi-NCR, Pune, Hyderabad and most Tier-2 cities run 1–3 months' rent. Mumbai commonly 2–6. Bengaluru is the outlier where 5–10 months was long standard, though competition (and platforms listing the deposit up front) has been pulling it down. On Smart Kiraya every listing shows its exact deposit before you visit — sort by it if deposit size matters to you.
What a landlord may fairly deduct
| Fair deduction | NOT a fair deduction |
|---|---|
| Unpaid rent or utility bills | Repainting after years of normal living |
| Damage beyond normal wear (broken fittings, stained walls) | Fading paint, minor scuffs, worn taps — normal wear and tear |
| Unreturned keys / access cards | 'Cleaning charges' never mentioned in the agreement |
| Costs the agreement explicitly assigns to the tenant | Anything with no receipt or basis |
The paper trail that protects you
- Put it in the agreement — Deposit amount, refund timeline (15–30 days is reasonable), and permitted deductions — in writing.
- Move-in photos — Date-stamped photos/video of every room, existing damage included, shared with the landlord on record the day you move in.
- Pay traceably — Deposit by bank transfer/UPI, never untracked cash. The transaction record IS your receipt.
- Repeat at move-out — Same photo walkthrough; hand over keys against written acknowledgement; request the refund in writing.
Deposit disputes are the #1 tenant complaint in India, and they're almost always won or lost on evidence. Several states' tenancy frameworks (and the Model Tenancy Act) push toward capped deposits — but the contract you sign is what governs you today.
Frequently asked questions
Is a 10-month deposit legal?
In most states there's no binding cap for private agreements, so it's legal if you agree to it. The Model Tenancy Act suggests capping at two months for residential leases, but states adopt it at their own pace. It's always negotiable — and on Smart Kiraya you can simply filter for lower-deposit homes.
How long can a landlord take to refund?
Whatever the agreement says — that's why you write a timeline in. 15–30 days after handover is a reasonable standard to insist on.
Landlord won't return my deposit — what now?
Send a written demand referencing the agreement, with your evidence. Escalation paths include the rent authority (where your state has one under its tenancy act), consumer forum, or a civil claim. Documented cases usually settle at the written-demand stage.