Right to Security Deposit Refund
Tenants are entitled to refund of their security deposit at the end of tenancy, minus lawful deductions.
🗣️ What this means for you
When your rental agreement ends and you vacate the property, the landlord must return your security deposit. Under the Model Tenancy Act, the maximum deposit a landlord can take is 2 months' rent (for residential) and 6 months' rent (for commercial). Deductions can only be made for unpaid rent, unpaid bills, or genuine damage to the property (not normal wear and tear).
Step-by-Step Action Plan
Before vacating, give proper written notice as required by your agreement.
Conduct a joint inspection of the property with the landlord and document the condition with photos.
Send a written demand for security deposit refund after vacating, keeping proof of delivery.
If the landlord refuses, send a legal notice through a lawyer demanding refund within 15-30 days.
File a complaint before the Rent Authority or Rent Court in your area.
You can also file a civil suit for recovery of the deposit with interest.
⚖️ The Relevant Law
Model Tenancy Act, 2021 (2021)
Section 8
"The security deposit for residential premises shall not exceed two months' rent and for non-residential premises shall not exceed six months' rent. The landlord shall refund the security deposit after adjustments within one month of the tenant vacating the premises."
⚠️ Punishment / Penalty
If the landlord fails to refund the security deposit, the tenant can file a complaint before the Rent Authority. The Rent Authority can order refund with interest and impose penalties on the landlord.
Required Documents
- 📄Rent agreement showing deposit amount
- 📄Receipt of security deposit paid
- 📄Bank transfer proof of deposit payment
- 📄Photos of property condition at the time of vacating
- 📄Written demand for deposit refund
- 📄Utility bill clearance receipts