Security Deposit Rules: How Much Can a Landlord Ask and When Must It Be Returned?
Caps, refund timelines and what counts as a valid deduction — the rules that decide whether you get your deposit back in full.
- Act
- Model Tenancy Act, 2021 (2021)
- Act number
- Not a numbered central Act — a model law approved by the Union Cabinet on 2 June 2021 for voluntary adoption by states and UTs
- Enacting authority
- Ministry of Housing and Urban Affairs (MoHUA), Government of India
This article is for general information only and does not constitute legal advice. Always verify current provisions against the official source before relying on them.
How much can be charged
Where the Model Tenancy Act framework applies, deposits are capped at two months' rent for residential property and six months' for commercial property.
States with their own Rent Control Acts — including Maharashtra, Karnataka and Tamil Nadu — may set different limits, so always check the applicable state law before agreeing to a figure well above two months' rent.
Refund timeline
The standard expectation is refund within 15-30 days of vacating, once the landlord has inspected the property and settled any dues.
What can legitimately be deducted
Unpaid rent or outstanding utility bills.
Repair costs for damage caused by the tenant, backed by receipts or invoices.
Cleaning charges, only if explicitly stated in the agreement.
Normal wear and tear cannot be deducted — that cost is the landlord's to bear.
If a landlord withholds the deposit unfairly
Start with a written demand referencing the agreement's refund clause. If that fails, a tenant can approach the state Rent Authority (where constituted) or the local Rent Court / consumer forum for recovery.