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When renting a house, a tenant has to give a security deposit to a landlord, which is returned by the landlord once the contract expires. For a tenant, this security deposit is often a big concern, as it can be a substantial amount and has to be negotiated with a landlord.
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HOW MUCH SECURITY DEPOSIT CAN LANDLORD`S CHARGE FOR HOUSE FOR RENT? When renting a house, a tenant has to give a security deposit to a landlord, which is returned by the landlord once the contract expires. For a tenant, this security deposit is often a big concern, as it can be a substantial amount and has to be negotiated with a landlord. AS THE INDIAN REAL ESTATE INDUSTRY IS UNORGANIZED AND THE SETTING THE AMOUNT LIES WITH THE LANDLORD. THE FIXATION OF CHARGES FOR THE HOUSE FOR RENT REMAINS UNDER THE LANDLORD`S DECISION. OUR WEBSITE, CIFIYAH IS A LEADING ONLINE MARKETING WEBSITE WHERE YOU CAN BUY, SELL AND POST FREE ADS. IT IS A CLASSIFIED WEBSITE WITH A VERY USER-FRIENDLY PLATFORM THAT ALLOWS USERS TO BROWSE THROUGH DIFFERENT CATEGORIES AND SELECT THEIR PREFERENCES. WWW.CIFIYAH.COM
How much security deposit can landlord`s charge for house for rent? When renting a house, a tenant has to give a security deposit to a landlord, which is returned by the landlord once the contract expires. For a tenant, this security deposit is often a big concern, as it can be a substantial amount and has to be negotiated with a landlord. As the Indian real estate industry is unorganized and the setting the amount lies with the landlord. The fixation of charges for the house for rent remains under the landlord`s decision. Common problems faced by tenants, with respect to security deposits In metropolitan cities like Mumbai, Delhi, Hyderabad, etc., property owners take advantage of the high cost of living to push for higher security deposit amounts, with little care for the condition of the house for rent, as the ratio of possible tenants to house for rent properties, is in favour of the landlords. Thus, depending on the area in the city, landlords charge between two to six months’ rent, as security deposit. A majority of tenants, especially in metro cities, comprise of the young working population, who are unable to pay high amounts as security deposits for house
for rent. At times, tenants have to give up on decent living conditions, as they cannot afford the high deposits demanded by landlords. Some people also resort to taking personal loans, to pay the deposit amount. The importance of security deposit for a landlord From a landlord’s perspective, the security deposit is essential for securing due performance by the tenants, of his/her obligations under the tenancy agreement. The landlord, under the agreement, has right to adjust the security deposit against any arrears of house for rent or other charges payable under the agreement. The convention of upfront payment differs across markets. The upfront payment is taken, to safeguard against house for rent defaults, etc. The security deposits is currently charged as per the convention in the micro- market and is required to be paid back in full to the lessee, at the end of the tenure. Standard wear and tear of an apartment for rent due to usage, is usually not charged and the tenant is expected to give back the apartment for rent in its original condition to the landlord. The tenant has to often bargain, to fix a decent amount as security deposit. Laws governing security deposit in rental agreements The Model Tenancy Act prescribes a cap on the amount of security deposit to be accepted from tenant for residential premises, which is a maximum of double the amount of rent. However, the Act does not provide for any such maximum cap on the deposit for commercial premises. The Act empowers the landlord to make deductions from such deposit, of the arrears of rent and other charges and requires the landlord to refund the remaining deposit, at the time of the tenant vacating the premises. Dos and don’ts for security deposits in lease agreements •The rental agreement should mention the amount of security deposit given by the tenant to the landlord and when it will be refunded. •Contracts should be legally registered and signed by both the parties. There should be no hidden clauses in the agreement.
•Landlords should return the security deposit, once the contract expires. If any amount is deducted, the landlord should provide justifications for the same. Our website, Cifiyah is a leading online marketing website where you can buy, sell and post free ads. It is a classified website with a very user-friendly platform that allows users to browse through different categories and select their preferences.
