The rent market in Bangalore is too illogical. Owners of flats and offices request Security Deposit which is too high.

Normally the security deposit is 10 times of monthly rent. This security deposit is one reasons which makes it very hard to even think of starting an office.

An office which I recently enquired with monthly rent of 8,000 requested 2,00,000 for security deposit.

What local laws in state of Karntaka requires such a huge security deposit?

Posted 1 year, 10 months ago by Prakash mehta


Actually its some old Karnataka Rent Act which gives the owners the right to collect security deposit. But the new act which is in force does not punish the tenants so much. Yet, they charge such draconian deposits because of excessive demand over supply, higher levels of income and lack of well-defined laws and regulations. It would be just if they reduce this deposit to may be 2 or 3 months.

Posted 1 year, 10 months ago by Rakesh Bharadwaj


I feel its right to say this act Extortion. Landlords ask for unbelievable security deposit. It is very defficult for young professionals or business owners to set up a office in decent space.

Even if you need a 250 sqft office, which is really small but security deposit could be in tune of 2.5 lakhs with heavy rent.

Something has to be done, most of the organisations or kingdoms were destroyed due to not realising the Extortion they were putting on public.

This renting industry will soon see a drastic downfall not only in rent amounts but in rented space too.

Bangalore is like a dream when it comes to job or having a business but for entrepreneurs still lot of changes are waiting.

Posted 1 year, 10 months ago by CA Pulkit Sharma


On top this hefty security deposit, they deduct a huge sum for painting expenses, which is very hurting. Its high time that Government of Karnataka and other states as well should intervene and protect the interests of small time tenants

Posted 1 year, 10 months ago by Rakesh Bharadwaj


I have seen this practice only in Bangalore. In other states or cities specially north India, such a huge security deposit is never demanded.

Looking at these rates, soon people will start buying flats. The security deposit is almost equal to down payment and rent is equal to EMIs.

Posted 1 year, 10 months ago by Rahul Rai


I think everyone in Bangalore has this problem of security deposits. Is there any association of owners which can discuss and reduce the security deposit limits?

Posted 1 year, 10 months ago by Prakash mehta


Yes, agreeing to yours views, Its a big problem in Bangalore. Every one is facing with this problem.

Posted 1 year, 10 months ago by CA AJAY MAURYA


Had a look at legal history of rent deposit. It seems earlier Karnataka had an act which enabled such high requirements of security deposit but the act is scrapped now however owners still enjoy the dead laws.

Posted 1 year, 10 months ago by Prakash mehta


Booked a new office with amazing security deposit of 1.5 Lakhs. A entrepreneur or new business owner has to keep minimum of 2 lakhs for security deposit.

This is something which need a change. A much required change in Bangalore.

I have not seen this trend in North Indian cities. In north India the maximum deposit is limited to 2 or 3 times of monthly rent. Here in Bangalore, the rent security deposit ranges from 10-20 times, which is really a big concern for new business owners.

Posted 1 year, 10 months ago by CA Pulkit Sharma


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