Why should you opt for a low security deposit?
When looking for a place to live, people frequently Google terms like "single bedroom for rent near me." When looking for a rental home, you'll consider a variety of criteria such as the location, amenities, square footage, furniture status, and the rent itself. However, there is another consideration to make, and that is the security deposit.
Before you can move in, the owners will normally require a refundable security deposit as a down payment. The deposit serves as a security deposit for the landlord in the event that the renters fail to pay rent or cause damage to the property. Keeping low security deposit saves you a good amount.
When looking for an apartment to rent, you may discover that while the rent is reasonable, some properties want a large security deposit. This may make you wonder if such expensive rents are standard, or if you can still find an apartment with a smaller security deposit.
Cities that have low security deposit
The average rent, as well as the security deposit, varies from cities to cities. Here are some of the Indian cities with minimal security deposits.
When compared to other metros with similar amenities, the average rent and security deposit for residences in Kochi are affordable. Keralites favour single-family homes over apartments. Many NRIs build or buy a home in Kerala, but leave it empty while they are away. As a result, Kochi has many unoccupied houses. Since supply is high security is less.
The automobile, oil and gas, and petrochemical industries are the mainstays of Ahemdabad's economy. While these provide a lot of job opportunities, they don't attract as many individuals as the IT industry does. As a result, the real estate market is small, resulting in lower rents and deposits.
While there are businesses in the centre of NCR that ask a high security deposit, if you get away from the noise and activity, you may easily locate places with inexpensive deposits. Noida features a variety of affordable home alternatives with low rent and deposits.
Despite the city's large migrant population and ongoing demand for housing, the security deposit for rented residences in Hyderabad is typically three to four months' rent. This is a decent price when compared to certain other metros, such as Bangalore, where the deposit has nearly equaled a month's rent. In Banglore, the homeowners even ask for one year rent altogether.
Jaipur is a developing city with tourism as its primary source of revenue. Jaipur, on the other hand, has great educational institutions and healthcare, which are attracting an increasing number of enterprises. Because the real estate market is only getting started, rent is very modest, and security deposits are typically three to four months' rent.
Mumbai is well-known as one of the most expensive cities in the world to live in. Navi Mumbai, on the other hand, provides economical apartments with low security deposits. More and more individuals are choosing to settle in Navi Mumbai due to improved connectivity with downtown Mumbai, spacious houses, new constructions, and inexpensive rents and deposits.
How does the security deposit effect the monthly rent?
Although the security deposit has no bearing on the rent, it may have an impact on your capacity to pay it on a monthly basis, especially since the deposit must be paid full before you move in.
You might not be able to pay the deposit with the money you have saved if it is abnormally large. In such circumstances, you may need to take out a loan to cover the cost of the refundable security deposit.
The loan instalments will have an influence on your monthly budget, making rent appear unattainable.
How Model tenancy Act Governs the Refundable Security Deposits in India?
The Model Tenancy Act is the only statute in India that deals with security deposits. It specifies that for residential properties, landlords can only demand a maximum of two months' rent as an advance.
It further stipulates that when you quit the premises, the landlord must restore the sum after deducting rent arrears and other expenses. Instant Deposit reimbursements are available through companies like BivocalBirds. Such elements give the tenant peace of mind when it comes to paying the security deposit.
As you can see from the preceding section, an unusually high security deposit is not lawful. You can try informing the landlord about the situation and assuring them of your excellent track record as a tenant to get the deposit reduced.