Bengaluru's ₹23 lakh rental deposit sparks public outrage

In Bengaluru, soaring security deposits are drawing public criticism, with a recent rental listing in Bennigana Halli demanding ₹23 lakh as a deposit for a 4BHK, nearly equivalent to a year’s rent. The listing triggered widespread outrage on social media, as users compared Bengaluru’s rental practices with more tenant-friendly norms in global cities.

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Unlike cities like Mumbai or Delhi, where rental deposits are capped at 2–3 months’ rent, Bengaluru lacks such regulations, allowing landlords to demand deposits ranging from 6 to 12 months’ rent. Real estate experts attribute this trend to the city’s rapid property price appreciation and constant influx of working professionals, particularly in the tech sector. Landlords reportedly view high deposits as a financial safeguard against defaults and property damage.

While the average deposit for mid-range homes hovers around 10–12 months’ rent, in premium localities and luxury segments, it often ranges from six to eight months. The lack of regulatory oversight has resulted in a rental market that heavily favours landlords, especially in upscale areas like North Bengaluru.

Comparisons with international markets, where deposits are typically capped at 5–10% of annual rent, have intensified the debate. Despite repeated concerns from tenants, Bengaluru continues to operate in a largely unregulated rental environment, amplifying affordability issues in a city already grappling with high living costs.