Bengaluru Real Estate: Security Deposits as Landlords' Passive Income? Tenants Speak Out
Bengaluru's rental market is under scrutiny as tenants report soaring rents and steep security deposits, raising concerns about landlords treating deposits as passive income.
Bengaluru Real EstateRental MarketSecurity DepositsTenant RightsLandlord ResponsibilitiesReal Estate NewsNov 19, 2025
Many of these homes, users noted, come with ‘dungeon-core architecture… 2008 tiles… no sunlight, no ventilation.’ One tenant reported that a landlord closed the terrace and then asked them to pay for using it, while another was charged ₹2,500 per month for parking, on top of already high rents.
“Bangalore landlords be like: Rent is income, Security Deposit is passive income. At this point I’m convinced: Rent = income | Security Deposit = passive income | Standard Deduction = festival bonus | Tenant = walking treasury,” read the post.
One Redditor searching for a 1BHK apartment under 750 metres from the Indiranagar metro station said the market “felt like a social experiment,” with houses of 400–600 sq. ft. costing ₹30,000– ₹40,000 in rent and deposits reaching ₹1.2 lakh to ₹2 lakh. Many of these units, he said, came with “dungeon-core architecture… 2008 tiles… no sunlight, no ventilation.”
Tenants called the most challenging thing the so-called “standard deduction”, a full month’s rent automatically taken from the deposit at move-out. “Actual repainting and cleaning costs are ₹8,000– ₹20,000,” one Redditor said, adding that some landlords act as if tenants “spent the year scratching hieroglyphics into the walls.”
Sudden rent hikes and ‘power trip’ charges
Several tenants wrote about sudden, unilateral rent and deposit hikes. One Redditor in Domlur said their landlord woke up one morning and announced: “Property prices around are increasing, so rent will go up by 40% and the deposit by 25%, or your notice starts today.”
Others described landlords implementing charges for the most ordinary spaces. One comment noted that a landlord “closed the terrace and then asked us to pay for using it.” In another property, tenants were being charged ₹2,500 per month for parking, on top of already high rents.
A prospective tenant who attempted to negotiate a capped painting deduction of ₹20,000 said it was rejected instantly. Paraphrasing their reaction, they said the landlord behaved as though the walls required “paint extracted from the tear glands of Himalayan unicorns.”
Some tenants faced far more serious financial consequences. One user reported that they never recovered their ₹1 lakh deposit, stating that pursuing legal action was too expensive. “I hope they never find happiness with such unjust money,” the Redditor wrote.
Another resident recounted how their rent in Indiranagar shot up from ₹50,000 to ₹70,000 the moment they vacated; a friend nearby saw their rent jump from ₹80,000 to ₹1.1 lakh. “Ridiculous,” they said.
Tenants look beyond prime areas, consider alternatives
Amid escalating costs, some Redditors advised looking slightly outside the immediate Indiranagar radius. Neighbourhoods like Michael Palya, Thippasandra, and Jeevan Bima Nagar were recommended for offering more options without being too far from metro connectivity.
Others compared flats with PG accommodations. While PGs costing ₹10,000– ₹20,000 with food were acknowledged as economical, renters noted the trade-offs: shared rooms, no privacy, limited guest comfort, and a dorm-like environment. Flats, they said, at least allow “your own space, your own routine, and guests who can sit and talk without awkwardness.”
Cleaning and repainting are basic housekeeping, they said
Redditors agree that “cleaning and repainting are basic housekeeping,” and most say it’s fair for outgoing residents to cover a reasonable portion of those costs. According to tenants, rent already includes the cost of routine wear and tear. They argue that when you rent a home, you’re paying for the property as a service and maintaining that service is the owner’s responsibility, unless the tenant has caused direct damage.
They said that long-lasting fixtures like fans, geysers, tube lights, doors, and bathroom fittings, items that should last a decade or more, shouldn’t be treated as consumables billed to the tenant at move-out.
Legal experts weigh in
Lawyers emphasise the importance of examining the rental agreement in detail before signing. “There are several critical clauses that both the landlord and tenant must agree on,” said Priyanka Kwatra, an advocate at the Karnataka High Court. She said that “I’ve frequently come across cases where landlords demand large security deposits, and in many instances, the full amount is not returned at the end of the lease.”
Advocate Srinivas G advises tenants to record the state of the home as soon as they move in. “Capturing photos or videos of the apartment at the start of the tenancy can serve as vital evidence,” he said. “It helps protect tenants if the landlord later tries to deduct money from the deposit for damages or repairs.”
Frequently Asked Questions
What are the typical rent and deposit costs for small units in Bengaluru?
Small 400–600 sq. ft. units in Bengaluru typically rent for ₹30,000– ₹40,000, with security deposits ranging from ₹1.2 lakh to ₹2 lakh.
What are some common complaints from tenants about landlords in Bengaluru?
Tenants often complain about high rent and security deposits, sudden rent hikes, additional charges for basic amenities like parking, and poor maintenance of the property.
What is the ‘standard deduction’ and why is it controversial?
The ‘standard deduction’ is a full month’s rent automatically taken from the deposit at move-out, often for cleaning and repainting. It is controversial because the actual costs of these services are much lower, and tenants feel it is an unfair deduction.
What advice do legal experts give to tenants in Bengaluru?
Legal experts advise tenants to carefully examine the rental agreement, record the state of the property at move-in, and be aware of their rights and responsibilities.
What are some alternatives to prime areas in Bengaluru for affordable rentals?
Neighbourhoods like Michael Palya, Thippasandra, and Jeevan Bima Nagar are recommended for more affordable options without being too far from metro connectivity.
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