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Deposit laws every Indian renter should know

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Deposit laws every Indian renter should know

Most renters lose a chunk of their deposit simply because they don't know the rules. Here are the ones that matter.

The Model Tenancy Act (2021)

The central framework caps security deposits at 2 months' rent for residential properties. Most states haven't adopted it fully yet, but it's your strongest reference point in any dispute.

State-level reality

  • Karnataka: own Tenancy Act, caps at ~6 months in practice disputes
  • Maharashtra: Rent Act historically favors tenants on deductions
  • Delhi: no hard cap, but courts routinely reject "wear and tear" deductions

What a landlord can legally deduct

  1. Unpaid rent or bills
  2. Actual damage beyond normal wear and tear
  3. Not repainting after multi-year tenancy (courts call this wear and tear)

Protect yourself

  • Photograph everything on day 1 and day last
  • Get the deposit amount and return deadline (usually 1-3 months) in the agreement
  • Use our deposit calculator to check what's fair for your area

If they refuse to return it

Send a legal notice (₹500 via any lawyer). The threat of RERA court resolves 90% of cases.

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