Renting in Bengaluru? Better Be Rich First

A recent rental listing in Bengaluru has triggered heated discussions across social media platforms, after a landlord demanded an ₹8 lakh security deposit and ₹1 lakh monthly rent for a 3BHK apartment situated between Electronic City and Sarjapur Road—two prime locations in the eastern IT corridor.

The fully furnished 1,400 sq ft apartment was flagged by a Reddit user who questioned the logic behind such an exorbitant deposit. “Tell me this is a joke? ₹8 lakh deposit for fully furnished? And ₹5 lakh for semi-furnished? No regulations and the greed is just going up!” the user commented, sparking a wider debate on the city’s entrenched rental practices.

Bengaluru’s Rental Culture Under Fire

Known as India’s tech capital, Bengaluru has long stood apart from other metros due to its unusually high rental deposits, often ranging from six to ten months of rent. While cities like Mumbai and Delhi have gradually leaned toward tenant-friendlier models with capped deposits, Bengaluru continues to operate with practices that many consider outdated and unfair to tenants—particularly to young professionals relocating to the city.

“The owner is living under a rock,” one Redditor quipped, capturing the sentiment of many who see such listings as detached from current economic realities.

Landlords Call the Shots as Demand Surges

Industry experts suggest that the city’s unrelenting influx of professionals, paired with limited affordable rental inventory, gives landlords the upper hand. Kiran Kumar, VP at Hanu Reddy Realty, explained that landlords in key zones are able to dictate terms with little opposition due to competitive pressure among tenants.

In upscale neighbourhoods like Indiranagar, rental deposits have reportedly touched ₹15 lakh for apartments priced at ₹1.5 lakh per month, highlighting how landlords are leveraging high demand to their advantage. Defence Colony and other elite localities around 100 Feet Road are further examples of areas where renters face steep upfront costs simply to secure a lease.

Will Deposit-Free Rentals Ever Take Off in Bengaluru?

While deposit-free rental models are gaining traction in other cities, their adoption in Bengaluru remains sluggish. These models, supported by rental bonds from third-party providers, allow tenants to bypass heavy security deposits by paying a smaller one-time fee instead.

However, Sunil Singh of Realty Corps pointed out that limited service provider presence and low awareness among landlords are hindering broader implementation. “Many property owners worry about insurance payouts or are wary of non-traditional agreements,” he noted, adding that scepticism and digital unfamiliarity are major barriers to change.

Until these concerns are addressed and alternative models are scaled, Bengaluru’s renters may continue to navigate a market where steep deposits are still the norm.

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