Giving security deposit while renting a house is a common practice in India. The landlord takes this amount so that if the tenant leaves without paying the rent or causes serious damage to the property, then it can be compensated. But it is often seen that while vacating the house, the landlord deducts a huge amount from the security money in the name of re-painting, deep cleaning or minor wear and tear.
Tenants have clear legal protections under Section 108(m) of the Transfer of Property Act 1882 and the Model Tenancy Act in Indian law. A landlord can’t withhold your deposit by citing all sorts of disadvantages.
‘Normal Wear and Tear’ vs. ‘Serious Damage’
According to the law, natural changes that occur in a house over time are considered ‘normal wear and tear’, for which the landlord cannot deduct money from the security deposit.
Normal Wear and Tear (deductions not permitted):
Fading or naturally peeling wall paint due to the passage of time.
Taps, fans, lights or switches becoming old and stopping working naturally.
Minor scratches on the floor or tiles due to everyday use.
Old locks or doors.
Serious harm (biting justified):
Digging large holes in walls or causing any damage.
Breaking window panes, doors, sanitary fittings or tiles.
Making changes to the structure of the house without the permission of the landlord.
Leaving any pending electricity, water or society maintenance bills unpaid.
Key rules for refund under the Model Tenancy Act
Maximum limit on deposit: For residential properties, the landlord can take a maximum of 2 months’ rent as security deposit.
Refund Timeline: The landlord has to refund the remaining deposit amount immediately after handing over the possession of the house and clearing the outstanding bills or within a maximum of 15 to 30 days.
Written breakdown is required: If the landlord is making deductions for any damage, he must provide the actual bill or receipt (written breakdown) of that expense to the tenant.
If the landlord refuses to return the deposit, follow these 4 steps
1. Collect photo and video evidence at the time of shifting
Take photos and videos of the entire house, walls, and fittings when you move in and vacate it. This is the most solid proof you can have to prove that you’ve handed over the house in perfect condition.
2. File a written or digital demand
Instead of just speaking to the landlord verbally, request a security deposit refund via WhatsApp message or official email. Attach receipts for all outstanding bills.
3. Send a legal notice through an advocate
If the landlord continues to make excuses or illegally deducts money, send a legal notice through a lawyer. In most cases, landlords resolve the dispute and refund the money upon receiving a legal notice.
4. Approach the Rent Authority or Civil Court
File a complaint with the Rent Authority or Rent Tribunal constituted at the state level under the Model Tenancy Act. If a Rent Tribunal is not active in your area, you can file a recovery case in the Civil Court.