One topic is unexpectedly unclear as India’s rental housing market grows more organized and urban tenants become more knowledgeable: security deposit refunds. Thousands of tenants deal with disagreements, late payments, or capricious deductions from landlords throughout the rental agreement handover process each year.
Tenants, however, are no longer helpless as of 2025. Thanks to more digital paperwork, clearer legal frameworks like the Model Tenancy Act, and more awareness of tenant rights, it’s now feasible to get your security deposit refund without enduring a lot of stress or quiet.
This blog is your go-to resource for information on what a security deposit is, if it is refundable, what terms should be in your security deposit agreement, and how to request, remind, or even legally escalate a security deposit refund if needed. Yes, we will also respond to that persistent query: “What if my landlord is not giving back my security deposit?”
Table of Contents
Understanding the Security Deposit
What is a security deposit?
The sum that the tenant pays the landlord at the start of the rental period is known as the security deposit. It acts as a safety net against unpaid rent, property damage, and contract violations.
Depending on the area, this sum usually varies between two and ten months’ rent in India.
If there are no damages beyond regular wear and tear and all outstanding debts have been paid, the deposit will be returned after the tenancy.
Legal Framework: Security Deposit Law in India
The Model Tenancy Act was introduced by the Indian government in 2021 with the intention of standardizing rental housing and safeguarding the rights of both landlords and tenants. Many states have embraced it or are in the process of doing so, even if it is not yet required in every state.
According to the Act:
- Landlords are only permitted to demand a security deposit for residential properties equal to two months’ rent.
- After the tenant vacates the property, the deposit must be returned within a month.
Although the Act establishes a standard, each state implements it differently. Therefore, in addition to the rental agreement, tenants must consult their local state tenancy laws.
How Long Does a Landlord Have to Return a Security Deposit in India?
The Model Tenancy Act of 2021 stipulates that the landlord must return the security deposit to the renter within a month after the tenant’s departure. In actuality, though, this differs based on the rental agreement in existence and the state’s approval of the Act.
- The one-month rule may be used as a legal standard if your rental agreement is silent on a deadline.
- You will need to use standard contract law to demand a prompt refund based on “reasonable time” terms if your state has not yet ratified the Act.
Also Read: RWA Rules and Regulations: Full Form and Roles for Residents
Step-by-Step Guide to Get Your Security Deposit Refund
Review Your Rental Agreement
The security deposit agreement should mention:
- The amount deposited
- Conditions for deduction
- Timeframe for refund
Understanding the clauses will help you prepare a valid claim if any dispute arises.
Maintain Property Condition
Before moving out:
- Clean the property thoroughly
- Repair any damage (if caused during your stay)
- Take dated photos of all rooms and fixtures as evidence
A joint inspection with the landlord is advisable. Request written confirmation that the property was handed over in good condition.
Clear All Dues
Ensure all dues-rent, maintenance, electricity, and water bills are fully paid. Collect receipts or confirmations for future reference.
Submit a Formal Application for Refund
Write an application for the refund of the security money, addressing the landlord. The application should include:
- Details of the property
- Duration of tenancy
- Amount of security deposit paid
- Confirmation that all dues are cleared
- Bank account details for the refund
Send the letter by registered post or email and retain a copy for your records.
Follow Up in Writing
Reiterate your request and provide a deadline for the return, usually 10 to 15 days, in a follow-up email or letter if the landlord does not reply within a reasonable amount of time (7 to 10 days).
If you need to pursue legal action, this written trail will be crucial.
What If My Landlord Is Not Giving Back My Security Deposit?
You have a few choices if the landlord keeps delaying or won’t return the deposit without good reason:
Deliver a Legal Notice
A lawyer’s official legal notification is usually successful. It acts as a formal warning and lets others know you plan to file a lawsuit.
Speak with the Rent Control Authority
You may use the “deficiency of service” clause to complain to the Rent Control Board or Consumer Court if the issue remains unresolved.
Make a Complaint to the Police
A police complaint under criminal breach of trust may be made in situations involving deliberate deception or significant financial amounts.
How to Send Legal Notice to Landlord for Security Deposit?
To send a notification of legal action:
- Employ a real estate attorney.
- Provide the leasing agreement, evidence of payment, and correspondence logs.
- The lawyer will write the notification, including the amount of the deposit, the agreement violation, and the repayment deadline.
Usually delivered by registered mail, this notice may contain a provision stating that additional legal action may be taken if the issue is not settled within 15 to 30 days.
Preventive Measures for Future Tenancies
Refund claims are critical, but avoiding similar circumstances in the future is just as important. Here are several ways to avoid this:
Sign a Comprehensive Written Contract
Make sure the terms, conditions, and amount of the security deposit are all spelled out in detail in the agreement.
Make a bank transfer payment
To keep a verifiable record, always pay the deposit by check or bank transfer.
Take pictures when you’re moving in and out
Make visual documentation of the property’s state at the start and finish of your lease.
Obtain a Certificate of No Dues
When you leave, request a “No Dues Certificate” from your landlord, either in writing or via email, attesting to the fact that any outstanding debts have been paid.
Final Thoughts
The money in the security deposit is yours, not the landlord’s. If you have fulfilled your end of the bargain, you have the legal right to request a refund of your security deposit, regardless of how cooperative your landlord is.
Being knowledgeable, keeping records, and taking a composed yet firm stance are crucial. Under Indian tenancy rules, you have legal recourse if the situation worsens.
You may make sure that your hard-earned money is returned swiftly and equitably by following the procedures mentioned above and being aware of your rights under India’s security deposit law.
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