Bengaluru landlords quietly scam tenants through security deposits

In Bengaluru, countless renters are facing an all-too-common struggle—watching large chunks of their security deposits vanish, even after leaving their flats spotless. Claims of “damage” come with no evidence, no bills—just vague justifications.

Financial advisor AK Mandhan, who’s shifted homes over 10 times in the city, vented on social media, calling it “Bangalore’s biggest scam.” His experience struck a chord. When startup founder Varun Mayya posted a similar ordeal, responses flooded in—millions of views and hundreds of tales of landlords shortchanging renters without explanation.

The issue is rooted in the steep advance payments often demanded—typically six to twelve months’ rent, sometimes as high as ₹5 lakh. When the lease ends, getting that money back becomes a battle.

This practice violates existing rules under the Karnataka Rent Control Act, which says deposits must be returned within a month and any deductions need documented proof. Yet, enforcement is nearly non-existent. The Model Tenancy Act, which limits deposits to two months’ rent, is yet to see full rollout in the state.

Common tenant frustrations include:

Unexplained reductions in deposit
Long waits for refund
Landlords refusing to justify deductions

Experts urge renters to protect themselves. Have a registered rental contract, take clear photos of the flat’s condition, save every receipt, and ensure all agreements are in writing. Some tenants even transfer the apartment directly to the next person just to recover their money.

#RentalRights #BangaloreHousing #SecurityDepositDrama #ModelTenancyActNow