Chandralekha MR, founder of fintech startup Dime, was shocked when a landlord demanded 10 months’ rent upfront as a deposit. For a Rs 50K rent per month space, she was asked to pay Rs 5 lakh in advance, which would make her total cash flow in a year Rs 11 lakhs.
Chandralekha took to LinkedIn to share her property-buying experience in Bengaluru. She said that she recently started looking for an office space for her team at Dime. During the office space search, she said she “was shocked when a landlord asked for 10 months’ rent upfront as a deposit.”
Despite being born and brought up in Bengaluru, Chandralekha found the amount shocking. “For a Rs 50K rent per month space, that’s 5 lakh just to get the keys. So, my total cash flow in a year? That’s 11 lakhs!! I’m born and raised here, but this number still felt unreal,” she said.
Add Zee News as a Preferred Source
She says that she is not the only person experiencing this situation in Bengaluru. She claimed that a Canadian professional was asked for Rs 23 lakh deposit for Rs 2.3 lakh monthly rent. Another founder faced Rs 5 lakh deposit for Rs 40K rent, she said.
According to Chandralekha, the deposit amount is just half the issue. She wrote, “Many landlords don’t even refund the full amount when you move out. Reddit is filled with people sharing how landlords deduct deposits for “painting”, “wall stains” or “light scratches”.
According to Chandralekha, “landlords say that these are “standard rates” and get away with it.”
She says that it makes sense that landlords would require security given concerns and risks like property damage, upkeep expenses and erratic tenants. But says, “even with those concerns, does it make sense to demand 10 months’ rent upfront?”
Chandralekha says that the payment is too high to pay before starting work. “If someone has to pay that much before even starting work, then it is as good as paying for the down payment amount to own a property,” she said.
Netizens’ Reaction
LinkedIn users had mixed reactions to the post with some saying Bengaluru has turned into a haven for daylight robbery, while others said that 10 months advance has been the norm in Bangalore for more than 20 years.
One user commented, “Here’s the catch: Karnataka hasn’t implemented the Model Tenancy Act, and the Karnataka Rent Act protects only rents up to Rs 3,500. Bengaluru has become a playground for daylight loot, with landlords and middlemen thriving unchecked.”
Another user commented, “10 months advance is the norm in Bangalore for more than 20 years.
No Surprise.”
“Why everyone is running after these big cities.. go and look for spaces at small cities that will save a lot of cost and if the infra cost is low you can pay high salaries to resources and you can also provide low cost to your clients. Another benrfit is you will get resources at low cost as the living cost in those small cities will be less…,” commented one user.
One user commented, “There are always 2 sides of the coin. Ask the land owners they will have grievances horror stories that will rival the pay you deposited..”
Stay informed on all the , real-time updates, and follow all the important headlines in and on Zee News.