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Bengaluru Rental Market Is the Security Deposit becoming a Passive Income to Landlords?

Refrence to Hindustan times. Rents and security deposit are on the increase in all of the most desirable real-estate areas of Bengaluru and tenants are again raising alarm over the issue. Units 400 to 600 sq. ft have become very expensive to rent with an average of 30,000 to 40,000 monthly rental charges and security deposits have increased to 1.2 lakh-2 lakh, thus creating feelings of frustration and financial burden to tenants.

Considerable Rent Rises With alleged substandard Conditions.

Many residents claim that the new price growth is not related to the quality of accommodations offered. The characteristics of properties were explained by several users on an online forum as including dungeons as layout, 2008 tiles, lack of sunlight, and none. One tenant even claimed that their landlord blocked the terrace and then charged them extra to use the terrace; another was charged an extra amount of 2500/monthly to park their cars besides the already high rents.

The feeling was summed up by a viral post in a tongue-in-cheek fashion: Rent is income, security deposit is passive income, standard deduction is festival bonus, and the tenant is a walking treasury.

In the Areas of Best Locations, Renters feel like Social Experiment.

Prospective tenants around the Indiranagar metro station had similar experiences. They wanted one-bedroom apartments, but they would find rents of 30,000-40,000 rupees and security deposits of 2 lakh rupees and often, they are linked to poorly maintained houses. The increasing gap between price and worth has triggered the doubts of many tenants on the sustainability of the Bengaluru rental system in the long run.

Issues with Deduction: One Month Rent as a ‘Normal’ Deduction.

The most notable problem of tenants is the so-called standard deduction, according to which, when ending the lease, the whole month rent is deducted from the security deposit automatically. Even during the process of repainting and cleaning, the cost will generally be 8,000-20,000, but tenants argue that some landlords act like they have inflicted significant structural damage.

A tenant once jokingly said that the landlord sold the property as one that needed paint that had to be taken off the tear glands of the Himalayan unicorns.

There were also cases when the conflicts reached a critical point. A tenant said that they lost 1 lakh dollars of deposit and that the expenses involved in seeking legal redress were greater than the refund.

Unexpected Bills and Raise of Rents Dominate the situation.

Cases of sudden increase in rent are being reported. One such resident who lived in Domlur complained that their landlord increased both the rent and security deposit by 40 and 25 percent respectively. Similarly, the rates in Indiranagar saw some immense increases with one of the properties going up by 50,000 to 70,000 or another closer by location rising by 80,000 to 1.1 lakh the moment the tenant left.

Moreover, tenants also complain that even basic amenities are being monetised by the landlords. The terrace entry fee, parking fee and even the like are being charged regularly and without any prior consultation.

Renters Explore Other Options other than Central Localities.

Due to the increasing living expenses, a significant number of Bengaluru residents are shifting to the surrounding areas of Bengaluru like Michael Palya, Thippasandra and Jeevan Bima Nagar. These areas offer relatively favourable housing opportunities at slightly reduced rates without losing the availability of metro.

The cost of shared-facility accommodation, ranging between 10000-20000, is still cheaper; however, tenants point to the attendant trade-offs as limited privacy, shared rooms, and a hostel-like atmosphere. They argue that rented apartments are more spacious and allow one to invite friends without restrictions.

Maintenance Costs should not be a Burden According to tenants.

Most tenants agree that periodical repaintings and clean up costs should be distributed fairly, considering that the normal wear and tear is already factored in the charges. They further insist that permanent installations, which can include fans, geysers and lighting, which are meant to be used over a long period of time should not be charged at the end of tenancy unless there is damage wrought by the tenant.

Lawyers Underline the Importance of Strong Contracts.

According to an advocate Priyanka Kwatra, tenants should carefully read a rental agreement before signing. She notes that landlords often require a large security deposit And in many instances, they do not give back all the money they receive when the lease is terminated.

Tenant Srinivas G suggests that tenants capturing the state of the apartment with photographs or videos on move-in should document it. In the case of unjust deductions made by landlords at a later date such evidence will come in handy.

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