Why is the security deposit for renting a home so high in Bangalore when compared to Delhi ? In Bangalore, Home owners ask for 10 months of rent whereas in Delhi, they usually ask for only 1 month of rent as security deposit ?

Bangalore has been growing at a very high rate for a few decades and it has led to a hike in rental prices which include high-security deposit amounts. While many major cities including Mumbai and Delhi ask for a deposit at most six times and two times the rent respectively, in Bangalore, the deposit amount is almost 10 times the rent. For many years now, property owners have been charging such a huge amount like it has been a norm. This is because there is no written rule on how much to charge for a deposit amount. The major reasons for such high deposits are: 1. Demand and Supply: Too many people living per square kilometre, this allows landlords to charge whatever they feel like. There are many people who'd like a house, and if you don't want to pay 10 months rent in advance, someone else will. Which brings me to my next point 2. Higher Levels of Income: If you don’t have the money to pay 10 months rent in advance, someone else will, because the IT boom has made it possible. 3. Lack of well defined/enforced laws: As there is no prescribed law specifying a definite amount or percentage, the homeowners can ask a deposit as high as 10 times. Apart from this, the higher deposit amount gives the owner a sense of security. Some issues that have prevailed which have made the owners in Bangalore demand such high deposits are: 1. Tenants decline to vacate the property. 2. Tenants refusal to pay the yearly rental revisions or monthly rental default while leaving the property. 3. Other issues such as damage done by the tenant to the property during the overall stay period.