Bengaluru real estate market's rental listing with ₹8 lakh deposit for a 3BHK sparks debate on social media

A Bengaluru apartment rental listing has sparked widespread debate on social media after a landlord posted his apartment for rent with a ₹8 lakh deposit and ₹1 lakh rent for a 3BHK. The apartment, located between Electronic City and Sarjapura Road towards the eastern IT corridor, sprawls 1400 sq ft.

"Tell me this is a joke? ₹8 lakh deposit for fully furnished? And ₹5 lakh deposit for Semi-furnished? No regulations and the greed is just going up and up!" the Redditor wrote.

Bengaluru, India’s tech capital, has long been known for its steep rental deposit norms, often ranging from six to ten months' rent. While other metro cities have moved towards more tenant-friendly practices, Bengaluru's high deposit culture continues to raise eyebrows among new residents.

As property prices surge and the city sees constant migration of working professionals, landlords cite security and investment protection as key reasons, experts say.

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'The owner is living under a rock'

One of the Redditors wrote, "The owner is living under a rock. That's the only explanation for these unrealistic rents."

In Bengaluru, landlords typically ask for a security deposit of 6–10 months of rent. So, for an apartment with a rent of ₹40,000 or more, the deposit will be ₹4.8 lakh. The high-security deposits have made it difficult for new employees moving to the city to rent apartments.

High demand, limited supply allow landlords to set the rules

Real estate experts say that due to the high demand for rental properties in Bengaluru, landlords are increasingly in a position to dictate terms.

"In several parts of the city, the availability of affordable rental homes is limited, leading to intense competition among tenants. As a result, landlords are raising rental deposits—often demanding what they want without much room for negotiation," Kiran Kumar, vice president at Hanu Reddy Realty, said.

One of the local brokers cited a recent case in Indiranagar, one of Bengaluru’s upscale localities, where an apartment listed for ₹1.5 lakh per month came with a deposit demand of 10 months' rent, totalling ₹15 lakh.

Defence Colony, just off the 100 Feet Road, is known for its spacious lanes and tree-lined streets. The area is home to top executives and developers, making it one of the city’s most desirable residential pockets. In such high-demand locations, landlords have significant leverage in rental negotiations.

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Deposit-free rentals are still in a nascent stage in Bengaluru

Some experts suggest that introducing deposit-free rental schemes could ease the financial burden on tenants who struggle with large upfront security deposits.

In such a model, tenants enter into a rental agreement supported by a third-party rental bond. Instead of paying a hefty deposit, the tenant pays a small, one-time fee to the bond provider. This bond acts as a financial safeguard for the landlord, covering potential risks such as unpaid rent, utility dues, early termination of the lease, or property damage. The approach offers greater flexibility for tenants while still protecting landlords against common rental defaults.

“Currently, one of the biggest hurdles is the limited availability of companies offering deposit-free rental models,” said Sunil Singh of Realty Corps. “Even though there is growing interest from tenants, we often have to fall back on conventional rental agreements due to the lack of service providers.”

He further noted that a lack of awareness is another key challenge. “Many landlords, particularly those unfamiliar with digital processes, are sceptical. They often ask, ‘What if I never receive the insurance payout?’ This hesitation is holding back wider adoption of the model,” Singh explained.