Tel Aviv,15 July-2014(RT): Israel has announced it will agree to an Egyptian-backed ceasefire in the…
With engineers, techies and entrepreneurs drawn to Bengaluru’s vibrant start-up ecosystem and IT industry, rental prices are on the rise. But rental deposits are now setting lessees back by lakhs of rupees with the unwritten rule of 10 months’ rent as security.
This rule has prompted many petitions to the government seeking a cap in the security deposit that landlords can command. Some online petitions have garnered as many as 25,000 signatures. The petitioners want the security deposit to be capped at three months’ rent, a rule proposed by the Centre in the draft Model Tenancy Act 2015.
Waseem Memon, a marketing manager in a private company, said, “We are planning to approach the High Court seeking a direction to the government to incorporate the three-month cap.”
The 10-month-rent as security deposit is the norm across the city. While landlords argue that this helps weed out unwanted tenants, coughing up so much money means that young tenants are forced to live in paying guest accommodation or taking loans.
“I came to Bengaluru two years ago after being hired by a BPO on Inner Ring Road. While leaving my hometown, my parents had said that they would visit me at least once a year. However, I can only afford a paying guest room, which does not allow outsiders. I was ready to pay up to Rs. 15,000 as rent but everyone also asks for Rs. 1.5 lakh security deposit. How can a person who has just joined work raise such a huge amount?” says Mohan (name changed), who is from Surat, Gujarat.
Others argue that the practice must be accompanied with some guarantee that the amount will be returned promptly on vacating. “We had given Rs. 2.5 lakh as security deposit and lived peacefully for three years.