Security Deposit Rules Every Renter Should Know

Paying a security deposit is one of the first things you do when you rent a flat, but most people don’t know what the law actually says about it. Knowing the rules helps you avoid surprises and protects the money you’re putting down.

In most Indian states the landlord can ask for a deposit that equals one to two months’ rent. Some cities like Mumbai and Delhi have informal caps around two months, while places like Karnataka may allow up to three months. The key is that the amount must be reasonable for the property size and rent level. If a landlord asks for more than the local norm, you can negotiate or ask for a written justification.

How Much Can a Landlord Ask for?

There’s no single national law that fixes the exact number, but the general practice is:

• 1‑month rent for a 1‑BHK or studio.
• 1.5‑2 months rent for 2‑BHK and larger units.
• Higher amounts only if the property is furnished or includes extra amenities.

If you’re renting a fully furnished apartment, a higher deposit is normal because the landlord is covering more items that could be damaged. Still, ask for an inventory list and make sure the deposit amount matches the value of those items.

When and How Do You Get It Back?

Getting your deposit back is all about the move‑out inspection. Most agreements require a written notice—usually 30 days—before you leave. During the inspection, the landlord checks for any damage beyond normal wear and tear. If everything looks good, the full amount must be returned within 15‑30 days, depending on the state.

To protect yourself, take photos of every room when you move in and again when you move out. Keep copies of the signed inventory and any repair receipts. If the landlord tries to keep part of the deposit, ask for a detailed written list of deductions. You can challenge unreasonable charges in the consumer court or through a local dispute redressal forum.

Some states, like Maharashtra, require landlords to keep the deposit in a separate bank account and not mix it with personal funds. This rule makes it easier to prove the exact amount you paid and helps prevent illegal use of your money.

Finally, remember that a security deposit is not a fee. It’s a refundable amount meant to cover actual loss. Treat it like a short‑term loan: you have the right to get it back, and the landlord has to follow the law to keep any part of it.

Knowing these basics lets you negotiate confidently, keep your money safe, and avoid a nasty end‑of‑lease battle. If you’re unsure about any clause in your rental agreement, talk to a local real‑estate expert or a lawyer before you sign.