10 months 'security deposit' in Bangalore

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10 months 'security deposit' in Bangalore

Postby Arion003 » Tue Aug 24, 2010 4:20 pm

Guys, My wife and I have been hunting for a place in Bangalore for the past couple of months. My wife is from Bangalore and I have moved here after we got married, so both of us were unaware of this practice that exists in the Bangalore rental market in respect of the security deposit. Apparently landlords do not feel secure here unless they are able to extract a draconian, absurd and almost comically large sum of 10months rent as security deposit!

Most of you are probably nodding your heads right now and thinking *this is how it is in Bangalore, take it or leave it pal*. Its sad that this is the state of affiars, promoted in all probability by paranoid landlords from times when the rental laws of the state were so lopsidedly in favour of the tenant that they felt insecure, however, I did some research and it turns out that the law was amended in 2001 and a new far more balanced law has been in place for the last 10 years. Yet the practice continues.

Its strange to hear people pontificate about how a house or a flat worth X-lakhs cannot be handed over without this as surety little realising that people rent out houses all over the world with a month or at the most two months rent acting as security deposit. I am not sure what special alloy of gold the builders of Bangalore are using in their buildings.

To challenge this ridiculous practice my wife and I have decided to start a blog about this whole issue. The blog is to gauge public opinion. Would appreciate it if some of you would respond to the poll on the blog and and/or also pen down any thoughts you may have in respect of the reasonableness or lack thereof of the whole 10month security deposit issue. Lets discuss this issue and thrash it out.

The aim behind the blog is to try and make Bangalore a little more progressive in terms of this leasing custom.

We are also prepared to act as a forum where people, both landlords and tenants, can post their requirements/availability if they are not looking for this crazy 10month deposit.

The blog address is - http://10monthsbeda.wordpress.com

Hope to see some of you contribute.

Sincerely.
Arion003
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Re: 10 months 'security deposit' in Bangalore

Postby Shann » Thu Aug 26, 2010 12:50 am

I had stayed in 3 different places in Bangalore with security deposit less than 2 months rent. Security deposit is not a law. Its something usually negotiable these days. Simply scold and reject the house if the owner asks for 10months rent as security deposit.
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Sun Sep 05, 2010 2:42 pm

That's really interesting Shaan. So there is hope out there! Its nice that there are people like you out there who don't believe in just rolling over and taking whatever it is that the landlords and brokers of this world have to offer, which seems to be the case with most people that I have encountered thus far.
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Re: 10 months 'security deposit' in Bangalore

Postby Apic » Sun Sep 05, 2010 8:29 pm

The 10months advance is really bull$hit. Ar ethe house owners living in the stone age? I see no one will be interested to see in those stone-age houses as new apartments are in plenty and the owners are educated and understand that the advance money more than 2 months rent is ridiculous.
Also I see the builders are in big loss these days as no one is buying apartments, is this true?
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Sun Sep 05, 2010 9:00 pm

Apic, re your point about 'educated' apartment owners - well I have pretty much exclusively been looking at apartments and its so strange that people, most of whom would qualify under the traditional definition of 'educated', continue to demand such amounts. And these also include people who do not even stay in Bangalore and are well aware of what the deposit requirements are in other parts of the country and even the world.

A potential landlord who stays in the States acknowledged that no where in the world had he heard of a deposit in excess of a month, his own place in the States included, but he didn't want to "stray from the norm" when it came to his own place in Bangalore. His excuse, I borrowed a lot of money so now I need to pay back my loan. Ofcourse he had no answer when I asked him what would happen when he would have to pay me back.

Another guy, from Hyderabad, acknowledged that it was 2 months in Hyderabad but people in Bangalore were "dishonest" so he needed 10 months deposit here..sheesh..how do you argue with this absolute absence of any sense?!

Not sure about how the sale market is doing at the moment, maybe someone else can provide a better picture.
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Re: 10 months 'security deposit' in Bangalore

Postby Doc » Mon Sep 13, 2010 4:20 pm

Don't agree to 10months advance.

Most house owners say you have to pay more rent if you want to reduce advance deposit. So nothing is a rule.

Houses are plenty in Bangalore, get another.
(BTW, are you finding houses via the crook agents? Talk directly to owners on phone, scold them if they ask a DEPOSIT.)
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Thu Sep 16, 2010 2:31 pm

I realise that this is 'custom' and not a law/rule.

My initial search focussed only on owners, they were willing to be flexible, if you can call reducing 20k from a 180k deposit flexible. After that went horribly I thought I'd try the agent route. Most of them were horrible. Did not even for a moment consider that this was a doable option and their reactions to my proposition would be nearly one of blasphemy! A couple of good agents however, were willing to negotiate and talk to owners. The search is still on, lets see how it goes.

Also, the increasing rent in lieu of deposit thing would be a reasonable proposition where the a house that leases for 18k is proposed to be leased for 25k in the absence of the draconian deposit..NOT.

I am glad that there are atleast people such as yourself out there who are willing to question this madness.
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Mon Sep 20, 2010 3:45 pm

Good news guys, we've just finalised an apartment for 4 months deposit, I know its not ideal but for Bangalore standards its a step in the right direction.

So for all those reading this, it can be done. DO NOT acquiesce to the 10 months' anarchy. Shop around, you will find people willing to be reasonable.
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Re: 10 months 'security deposit' in Bangalore

Postby Sravanthi » Mon Sep 20, 2010 4:32 pm

Congrats. Our land lord also has taken 2 months advance.. near dairy circle.
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Tue Sep 28, 2010 10:27 am

So it seems that reasonableness accompanied by a little "scolding" can do wonders. This is perhaps the recepie for making Bangalore a little more progressive in respect of this perceived deposit anarchy.
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Re: 10 months 'security deposit' in Bangalore

Postby Aka » Tue Sep 28, 2010 2:06 pm

Why not list down the house address of those "unreasonable" owners here? Can help readers avoiding the scumbags. :twisted:
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Tue Sep 28, 2010 7:49 pm

Not a bad idea, let me recall the list and see if I can put something down.
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Re: 10 months 'security deposit' in Bangalore

Postby SAM » Sat Oct 23, 2010 11:42 pm

This 10month rent deposit is quite a disease with some landlords in Bangalore. We should strongly oppose it. I really appreciate that the topic-starter has created a blog on this. I would also request TALKBANGALORE to take initiative iradicating this sick practice from Bangalore.
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Re: 10 months 'security deposit' in Bangalore

Postby Preety » Mon Oct 25, 2010 9:41 am

Truey said. The deposit demanded by landlords at Bangalore should be as reasonable as the other South Indian metros. Thanks for projecting the concern.
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Re: 10 months 'security deposit' in Bangalore

Postby Arion003 » Mon Oct 25, 2010 12:23 pm

Guys even though I have found a place to stay I think I am going to spend the next few months continuing to respond to houses for rent ad's, especially those where 10 months deposit is involved. I think it is important for these landlords to hear the words "are you crazy" and "No, I will not pay such a ludicrous amount" from the market, its perhaps only then that they will realise that there is really no reason for such deposits aside from their "this is how its been forever" reason. Just because things are a certain way does not make it the right way or the only way.

I hope you guys can also air your views on our blog http://10monthsbeda.wordpress.com/ and post any requirements or available properties you might have without this 10 months deposit.
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