Woman tweets 'so tired' after Bengaluru landlord wants Rs 5 lakh deposit, Rs 40,000 rent for flat

Bengaluru rent and security deposits have been soaring of late. (Representational)

A woman trying to rent a property in Bengaluru highlighted the staggering cost of securing an accommodation in the Silicon Valley of India: Rs 5 lakh security deposit paired with a Rs 40,000 monthly rent. “I’m so tired,” Harnidh Kaur tweeted, sparking a flood of comments from people sharing similar experiences and frustrations with high deposit demands.

Kaur’s tweet has put the spotlight on rental deposits across Indian cities, as renters compare the costs and conditions they face in securing housing.

One user shared, “No one asks for so much deposit unless there’s an agreement to compensate lower rent with a higher deposit,” adding that elevated deposits have become the norm in Bengaluru as a form of “security” for landlords.

Another commenter remarked that an average Bengaluru apartment “has more amenities, woodwork, lights, and furniture than Rs 5 lakh deposit money,” justifying the need for high deposits to protect these additions.

5 lakh deposit for a flat with 40k rent :)))))Im so tired :))))
Harnidh Kaur (@harnidhish) November 11, 2024

Many others lamented the shift from earlier times when only one month’s rent served as a deposit. While there are still several cities that ask for only a month’s security deposit, the case is starkly different in cities like Bengaluru and Mumbai.

Bengaluru’s rental deposits, typically ranging from 6 to 10 months’ rent, stand in stark contrast to the norms in other major Indian cities. In Mumbai, deposits generally hover around 3 to 6 months’ rent, often pegged at lower multiples despite extremely high monthly rents.

Delhi and Hyderabad offer slightly more tenant-friendly options, with average deposits of 2 to 4 months. Several landlords in Delhi only demand a month's security deposit - especially for unfurnished properties. Kolkata remains the most affordable among metros, with deposits commonly limited to 1 or maximum 2 months of rent - and the rent too is very affordable.

This difference means that while a Bengaluru tenant might pay upwards of Rs 5 lakh as a deposit for a flat with Rs 40,000 rent, their counterparts in Delhi and Kolkata might be expected to pay less than half that amount for comparable properties. Even within Bengaluru, rent deposits show wide variance, with newer, amenity-rich developments charging higher deposits.

Why Bengaluru’s Deposits Are High

For landlords, the explanation for high deposits is simple: property protection. With many Bengaluru homes offering premium features like modular kitchens, wardrobes, and access to clubs and gyms, landlords argue that substantial deposits protect them against potential damage. Yet, tenants and property advocates contend that high deposits lock away funds that could otherwise aid financial stability, home ownership goals, or emergency needs.

Apart from this, getting the security money back is a hassle and there are several deductions. This, after Bengaluru landlords take resumes and even interviews before finally deciding to rent out their property to someone they approve of. Then comes several restrictions.

Soaring rents in Bengaluru have spurred a dramatic shift in homebuying trends, with the median age of first-time home buyers dropping to 34 from 42 in just three years, as millennials and Gen Z prefer homeownership over renting, according to experts.

Prime areas in Bengaluru have seen rent surging 45-50 percent over the past three years. A two-bedroom apartment in a desirable location now commands Rs 50,000-65,000 a month in rent, while that for a three-bedroom unit reaches Rs 80,000. These rental returns are also attracting young homebuyers into the market.

Harnidh Kaur’s final remark on her tweet—"sometimes you just gotta laugh, say ‘this would be a banger tweet’ and move on"—underscores a feeling of resignation that many renters share in today’s market. Kaur said she did not even negotiate and the flat was not ‘worth’ it.