Bengaluru Tenant Gets Just Rs. 19,604 Back From Rs. 1L Deposit: What Karnataka Law Says About Rental Deduction

Bengaluru's rental market has been under rising pressure as thousands of people move into the city for jobs, business and better career opportunities. For many newcomers, finding a house in Bengaluru has become a big challenge because of high demand, ultra high rents and hefty security deposits adding to the stress of moving to the city.

A recent case has emerged in which a tenant claimed that after moving out of a 2BHK, he received only Rs. 19,604 back, with Rs. 80,396 deducted for routine maintenance.

The case came to light through a post on the Reddit r/bangalorerentals subreddit. The tenant, who said he had rented a 2BHK apartment, alleged that the landlord's deductions included expenses for painting, polishing, repairs, electrical work, carpentry, plumbing, cleaning and other maintenance. He questioned whether he should have to bear costs which would ultimately benefit the next tenant.

According to the tenant's account, he paid a Rs, 1 lakh security deposit for a 2BHK home and maintained the property during his tenancy.

After he moved out, however, he received a deduction statement showing charges totalling Rs. 80,396. That left him with a refund of only Rs. 19,604, meaning more than 80% of his original deposit had been deducted.

He said that he had treated the property carefully and whatever he is paying is effectively going to improve the apartment for its next occupant.

The Reddit post subsequently attracted hundreds of reactions, with other Bengaluru renters sharing accounts of disputes over security deposits and move-out deductions.

Some users also complained about the city's typical high advance-deposit practice and said that landlords sometimes use large deposits to cover expenses that should ordinarily be treated as routine maintenance.

What Can A Bengaluru Landlord Legally Deduct From A Security Deposit?

The Karnataka Rent Act, 1999 says that a tenant must hand over the premises in the same condition in which it was received, except for normal wear and tear. Where damage has been caused, the tenant can be required to make good that damage.

The Act also says that the repair responsibilities is on both landlords and tenants depending on the nature of the repair.Section 47 requires landlords, subject to the terms of the written agreement, to maintain the premises in good and tenantable repair for matters assigned to the landlord under Schedule V.

That means a landlord cannot automatically treat every expense incurred after a tenant moves out as a tenant's liability.
A landlord may have legitimate grounds to recover the cost of repairing actual damage caused by the tenant.

But simply repainting or polishing a property after every tenancy does not necessarily mean the landlord can automatically pass the entire expense on to the outgoing tenant.

Therefore, a big deduction described only as painting charges can be disputed if the landlord is unable to claim that the expense relates to damage beyond ordinary use. However, everything depends on the rent agreement hence should be discussed before taking the ownership of the house.