Legal Question in Civil Litigation in India

Re: deposit amount rental house

10 months rent or 12 months rent depends on the landlord.

suppose if the Deposit is more than 12 months rent will come down, depends on mutual discussion.

B.Balasubramanya.

Advocate.

Re: deposit amount rental house

There is no fixed rate which the owner can ask as deposit. In a normal leave and licence agreement three months rent is the deposit taken which gets adjusted in the last three months of the period of the agreeement.

Sometimes the Owner in order to safeguard the value of his house in the event he has doubts whether the tenant will return the same to him after the tenancy expires, asks for half or more of the value of the house as a deposit and a Bank Guarantee for part value too! In such an event the rent taken is quite low.

Thus, there is no limit fixed for the deposit to be taken. BUT bear in mind the deposit and the rent will both together figure in arriving at the rate of the stamp duty and registration charges for leave and license agreement to be entered into with the tenant. The duration of the Agreement will also be taken into account for determining the value of the duty and registration charges.

Re: deposit amount rental house

Deposit can be any amount from three months rent to six months rent or an agreed amount between the parties, there is no law - only norm exists.