Archives: March 24, 2023

Reducing a high rental deposit

Selling Kidneys, Jewelry – How People are Arranging for a Rental Security Deposit

For those searching for a home in cities like Mumbai and Bengaluru, rising rents are just one part of the problem. As landlords get to take their pick, the more immediate concern seems to be finding the funds to pay their security deposit. Recently, a funny post surfaced on social media where a user joked about selling a kidney to pay his security deposit. 

This may be an exaggeration, but as rents shoot up, rental deposits have also gone through the roof. As bulk payment, it can pose a bigger problem for tenants in the short term. Hence, it’s important to understand the laws and customs that dictate how much security deposit can be charged. 

Booming rentals and rising deposits

Rents in the top 7 cities in India have gone up by 20-30% in the last two years. As per an ANAROCK report, rents are expected to continue with an upward trend in 2023. This is good news for landlords who had seen rents lying static for two years during COVID. 

The tide started turning in 2022 as offices and schools started opening up as our article explores here. Booming rents mean that security deposits are also becoming substantial. There are reports of landlords asking for six to ten months of rental deposits, driving up the total amount in lakhs. This has prompted the spate of jokes on impossible payments. 

What does the law say?

Are these heavy security deposits justified? With landlords demanding six to ten months of rent as a security deposit, many tenants are now questioning the ground for such high deposits. In this situation, it is prudent to know the rules and regulations dictating this amount. 

Where the law is concerned, rental security deposits fall under the Model Tenancy Law Act, 2021. As per the act, the deposit amount is capped at two months’ rent for residential property, and at six months’ rent for non-residential premises. However, since Land and Urban Development is a state subject, the act is not binding on the states. Currently, only four states are following the act. These are Uttar Pradesh, Tamil Nadu, Andhra Pradesh, and Assam. 

In practice, the amount of rental security deposits is usually decided by the micro market customs. One can read more about the rental security deposit in our detailed article here

How to manage a high rental security deposit?

A rental security deposit is aimed at creating a safety net for landlords. It is a refundable deposit that the landlord has to pay back at the end of tenancy or as specified in the rental agreement. The deposit can be deducted to recover any unpaid rent arrears, pay for repairing any damage to the property, or for any other fee as specified in the rental agreement. Tenants can manage high rental deposits through the following means:

Negotiations: Negotiate with the landlord to reduce the deposit. Point out that the law specifies two months. 

Establish trust. Since the purpose of the deposit is to protect the landlord against any loss or damage to the property, start by establishing yourself as a trustworthy tenant. Make sure all the relevant information and references are at hand. 

With ApnaComplex: Get professional help in reaching out to landlords with ApnaComplex. Our dedicated Estate Portfolio Managers can help you to:

  • Know about micro-market customs. 
  • Get negotiation support when dealing with the landlord.
  • Establish trust through ApnaComplex background check and KYC 
  • Make sure there is a rental agreement in place. 

If you want to know more about ApnaComplex Rentals, visit or write to us at 

Master guide for the year end

The Ultimate Yearender Checklist

The yearender is a crucial time for gated communities with annual audits looming. It must be completed in time for by the Annual General Body Meeting where the Management Committee (MC) has to present the society’s annual accounts and the next year’s budget. To ensure a smooth execution, we have to start off by ticking all the required boxes in our exhaustive yearender checklist.

Legally, cooperative housing societies have to ensure an audit of accounts before the 31st July of every year. In addition, they have to gather support of other members and formulate a viable budget. This can be a challenging task where every small task is critical. This checklist is designed to ensure that every task is completed. ApnaComplex can be a powerful tool in easing the process through accounting automation and professional support.

The Yearender Checklist

So, here’s an exhaustive checklist of all tasks that must be completed at this critical time:

Accounting checklist 

  • Set the timetable for finishing all tasks, including data reporting and processing as well as fiscal closure of accounts. 
  • Check if the current year’s opening balance is synchronised with last year’s audit report.
  • Make sure all expenses are recorded.
  • Resolve suspense ledger
  • Settle outstanding debts
  • Analyse expenses and look for tax deductions.  
  • Update all financial reports. 
  • Check depreciation entries, FD entries (both accrued and matured)
  • Confirm if Professional Tax, TDS and GST returns are filed
  • Verify TDS receivable and advance tax entries
  • Ensure bank reconciliation 
  • Analyse the final cheque inventory, including issued, stalled, or canceled cheques.
  • Ensure that none of the reports or ledgers show negative value
  • Send annual ledgers to all members.

Society checklist

  • Create and publish a list of members by 31st March.
  • Check the minutes of the previous committee meetings for the agenda. 
  • Clear pending transfers and update registers.
  • Give residents access to relevant reports. 

The budget checklist

  • Analyse budget variance as well as income and expense report to track expenses. 
  • Analyse income streams and explore additional avenues. 
  • Formulate the budget keeping in mind expenses and future infrastructure developments and social spends. 
  • Evaluate spending against reserve funds and income. Then examine if there is any need to raise maintenance fees. Other options can be explored such as charging a one-time fee for a specific development or raising other incomes like parking fees. Alternatively, income streams like monetising events or vendor partnerships can also be considered.
  • Finalise maintenance rates for different units or as per requirements and set due dates.  

Preparing for the year end with ApnaComplex

Preparing financial documents for the year end is a challenging task for any accounting team. But with ApnaComplex, the entire process can be executed with minimal effort and time. Here are a few ApnaComplex tools that can help you complete the yearender checklist.

Update reports with ApnaComplex

One of the biggest challenges during the year-end is preparing and compiling reports before the annual audits. ApnaComplex automates the generation of critical reports like budget variance, defaulters’ lists and expense reports. 

Accessible reports

ApnaComplex makes reports accessible by making these easy to access and read. Admins can now view and download 100+ reports with just a click. This includes Profit and Loss Statement, Income and Expenditure report, Balance Sheet, and the statement of cash flows. Additionally, these reports are easy to read, making it accessible for the average resident.

Improve budgeting

ApnaComplex offers multiple tools to gather data for budget optimisation. Get a budget variance report to check the efficacy of budget allocations, cut down on untraceable expenses, ensure on-time collections, improve financial reporting, and track expenses. Read more about Optimising Society’s Spending & Improve Cost Efficiency.

Bookkeeping services

For societies without any support from financial personnel, ApnaComplex offers all-inclusive Bookkeeping services. The scope of services includes income and expense tracking, publishing financial statements, and filing TDS and other returns. In addition, our experts also assist auditors with the necessary information to file returns.  Find out more about ApnaComplex bookkeeping services here.

To know more about how ApnaComplex can help societies to execute a smooth year-end process, ticking off this yearender checklist, reach out to us at or +91 80886 11229 for any other concerns.

Rental Security Deposit: A Primer

Everything you Should Know about Rental Security Deposit

When looking for a rental home, the actual rent is only part of the deal. Before that comes the essential and substantial responsibility of paying a rental security deposit. There are good reasons for charging a security deposit as it provides security to the landlord. However, it can run into lakhs in certain cases. In addition, this lump sum payment has to be paid upfront.

But before you charge or pay the required amount, you must understand what a security deposit entails. Here’s a short primer: 

What is a rental security deposit?

A rental property security deposit is a refundable amount that a tenant pays the landlord at the start of a tenancy. This amount is generally decided according to the prevailing customs in the micro market –  typically, two to three months of rent. However, in certain places, it can exceed a year’s cumulative rent, creating a substantial financial burden for the tenant. 

The amount of the security deposit is defined as per state laws. Hence, it can differ from one state to another. In practice, the amount is often influenced by micro markets. So, you may find different practices in different localities within the same city. 

Why do landlords charge security deposits?

As the name suggests, the security deposit is meant to protect the interests of the landlord. For instance, it can safeguard them against losses if the tenant fails to pay the rent. The landlord can deduct:

  • Unpaid rent arrears 
  • Cost of repairing any damage to the property
  • Any other fee as specified in the rental agreement

This damage does not include normal wear and tear of the property. For instance, the landlord may charge for a broken window pane, but not for the wall paint peeling off after a few months. 

Getting a deposit refund

Once the tenancy ends, the landlord must return the security deposit to the tenant. However, there are cases where the landlord may withhold the payment unfairly, using different pretexts. This is where a rental agreement becomes so important. As a legal document, it specifies the landlord and the tenant’s financial obligations. 

Do’s & Don’ts 

  • Make sure there is a rental agreement signed by both landlord and tenant.  
  • File the rental agreement with the sub-registrar office so that it is a legally binding contract. There should be no hidden clauses.
  • Specify the security deposit amount and when it should be refunded.
  • Specify the financial obligations of both landlord and tenant. 

To know more, read our article on why you should insist on a rental agreement.


Is there a law regulating rental security deposits? 

Rental security deposits come under the Model Tenancy Act, 2021. However, since Land and Urban Development fall under state subjects, the act is not binding on states. So far, only four states, Andhra Pradesh, Uttar Pradesh, Tamil Nadu, and Assam have revised their state regulations in line with the Model Tenancy Act, 2021.

How much should be the security deposit for a house rental? 

The Model Tenancy Act, 2021 limits security deposit to a maximum of two months’ rent for residential purposes. For non-residential properties, the deposit is a maximum of six months. In practice, charging security deposits are often influenced by trends in the micro market. 

Is a security deposit refundable?

Yes. However, it is not uncommon to see disputes regarding the refunded amount. Many landlords add on charges, asking for repairs or other payments. This is why a rental agreement that specifies each party’s obligations is so important. 

Can you ask for receipts?

Yes, you should ask for a payment receipt of the security deposit. It should contain details like the date, cheque number, and signature of the owner.

Can the landlord be penalised for late refunds? 

Yes. But remember, this can be enforced only if it is mentioned in the rental agreement. Hence, the agreement should specify the timing of the refund and the terms of penalty in case of delay. 

How can ApnaComplex Rentals help?

If you are unsure of how to go about framing a rental agreement, ApnaComplex Rentals can help you. It provides all-inclusive services that includes support in creating and registering a rental agreement. It also offers landlords tenant KYC and background verification for added security. 

If you want to know more about ApnaComplex Rentals, visit or write to us at