Why Bengaluru’s rental market ignores the two‑month deposit cap
The Model Tenancy Act, 2021, caps security deposits for residential premises at two months’ rent
Even as the government mandates a security deposit of up to two months’ rent, many tenants in Bengaluru are far away from seeing any relief. businessline spoke to brokers and tenants who say owners have reduced deposits from the ten-month level to about six months, but the rule is not being enforced on the ground.
Diya (name changed), an IT professional who commutes to her office from Marathahalli, was taken aback by the “almost never‑ending” hunt for a place. Relying on platforms such as NoBroker, she encountered listings that demanded deposits of over ₹2 lakh for a property with a monthly rent of ₹20,000- a figure that has become an unspoken norm in the city. “Most owners ask for a high deposit,” she said. “I used to reject properties, only to realise this is how it works here.”
Janani (name changed), who wishes to remain anonymous, pays ₹32,000 in rent but was asked for a ₹1.5 lakh deposit. After turning down several properties, she eventually relented. Vinay, another resident who previously lived in Ramamurthy, recalled that for a two‑bedroom flat he rented three years ago, he had to pay a security deposit equivalent to seven months’ rent. A scan of NoBroker listings by businessline confirms that many owners still demand deposits well above the two‑month limit.
Brokers told businessline that, after the Model Tenancy Act of 2021 came into force, landlords reduced deposits from ten months to about six months, but they remain reluctant to charge only the legally permitted two months.
Informed choices
Amit Agarwal, co‑founder and CEO of NoBroker, explained that owners typically request six months’ rent as a safeguard against potential damages, rent default, or vacancy losses. He added that the platform displays rent and deposit amounts transparently, allowing tenants to make informed choices, though it does not flag listings that exceed the legal cap.
The Model Tenancy Act, 2021, caps security deposits for residential premises at two months’ rent. While the Act was passed by Parliament, its implementation falls under state jurisdiction, and Karnataka has yet to adopt the full provisions. Consequently, adherence to the deposit cap varies among landlords, and the lack of clear enforcement leaves tenants with limited options and fuels the high‑deposit culture that has become entrenched in the city.
While the Model Tenancy Act’s two‑month cap on security deposits remains on paper, landlords in Bengaluru continue to demand higher amounts, leaving many tenants to negotiate the extra cost.
Published on November 18, 2025
