How much deposit is "normal"?
There is no central law fixing a security deposit amount. The widely followed norm is 2-3 months' rent for residential properties in most cities, and up to 6-10 months in high-demand markets like Bangalore and Noida. One growing exception: states that adopt the Model Tenancy Act cap residential deposits at two months' rent. The deposit is yours to hold, but it is not yours to spend — it is a security against damages or unpaid dues (see what to do when a tenant stops paying rent for how arrears and the deposit interact). None of it protects you if you have rented to the wrong person, so start with tenant verification and police checks before you take a rupee.
Security Deposit & Move-out Refund Calculator
Calculate net refund amount & check Model Tenancy Act compliance
The 10 things every landlord should know
These points cover the practical realities of deposits in India:
The move-out deduction rule that most landlords get wrong
Courts consistently hold that a deposit deduction must be "reasonable and proportional". A landlord who deducts for a cracked wall after a 6-year tenancy (normal wear) will likely lose in consumer court. For clear guidelines on what counts as structural vs routine fixes, see landlord vs tenant maintenance responsibilities in India. Photograph the unit at check-in and check-out — it is the single strongest piece of evidence you can have.
How TenantsFlo handles deposits and settlements
TenantsFlo records the deposit when the tenant moves in, and the move-out wizard walks you through deductions (unpaid rent, damages, utility arrears) to calculate a fair settlement. Both you and the tenant get a clean statement of what was deducted and why.