What can a Landlord Deduct from Your Deposit?

Yes, landlords can deduct some amount from your deposit if the property is not handed over in the same condition as it was before moving in. According to the rental act, it is legal to deduct from your deposit if there is any damage to the property and you haven’t repaired it. Generally, for normal wear and tear, the landlord won’t deduct anything. But, if the damage is huge, he/she can deduct the amount after calculating the cost for replacing or repairing work. Here are a few reasons on what factors a landlord can deduct some amount from your deposit for: a. Broken tiles or fixtures in bathrooms b. Stopped toilet due to misuse c. Broken walls d. Removing paint put up by tenant e. Broken windows and window screens f. Broken doors and locks g. Appliances broken by negligence

In India, a landlord can deduct from a tenant’s security deposit for certain valid reasons, primarily related to the condition of the property or unpaid dues. I have shared what can a landlord deduct from a security deposit. This includes unpaid rent, repairing costs and so on. 

What Can Be Deducted From a Security Deposit?

1. Unpaid Rent:

   If the tenant has not paid the rent for a month or more, the landlord can deduct this amount from the deposit. It's common practice to ensure that the rent is cleared before the security deposit is refunded.

2. Repairing Property Damages:

   Landlords can deduct for any damage beyond normal wear and tear. Examples include broken fixtures, damaged walls or flooring, or other repairs needed due to negligence. Routine maintenance issues like minor scratches or faded paint are generally not considered damage unless stated in the lease agreement.

3. Unpaid Utility Bills or Maintenance Charges:

   If the tenant leaves without paying electricity, water, gas, internet, or any society maintenance fees, the landlord may deduct these unpaid bills from the deposit. It’s advisable to settle all bills in advance and keep receipts to avoid disputes.

4. Professional Cleaning Fees:

   If the property is returned in an unusually dirty or unclean state, landlords may charge for professional cleaning. This is usually applicable if the tenant leaves the property significantly dirtier than when they moved in.

5. Early Termination Penalty:

   If the tenant leaves before the lease term without proper notice or breaks the lease terms, a penalty may be charged if stated in the lease agreement. Usually, this would be an agreed-upon deduction rather than an arbitrary amount.

6. Painting and Refurbishing Costs (If Agreed):

   In some cases, landlords may agree with tenants that painting or minor refurbishments will be done at the tenant’s expense. If specified in the lease, these costs can be deducted when the tenant moves out.

Now that you know what can your landlord deduct from your deposit, let us focus on

what cannot be deducted,

• Normal Wear and Tear: Landlords cannot deduct for ordinary wear and tear, such as faded paint, minor scuffs, or minor flooring wear.

• Upgrades: Tenants should not be charged for any renovations or improvements that benefit the property or future tenants.

A fair deduction policy ensures transparency, and following these guidelines can help both landlords and tenants avoid disputes over security deposit deductions.

Get Your Rent Agreement with Proper Terms about Security Deposit Drafted Clearly through NoBroker

Read More:

Is Security Deposit Refundable or Not?

 

Hi there, I can share details about the landlord deducting money from deposit. I have been living as a tenant for a couple of years in Hyderabad, and have faced similar issues. Let me share more details about this.

What can Landlords Deduct from Deposit" target="_blank" rel="ugc">Get a Rent Agreement Drafted Via Experienced Lawyers From NoBroker! More related information:

What is the Rule of Fixing Deposit While Renting Shop?

Yes, most of the time, security deposit deduction is done while moving out of a rented house. Normally, many tenants know that in the name of normal wear and tear security deposit is deducted. However, there are many instances where the landlord can deduct security deposit for cleaning and painting purposes as well if the property is very dirty. Apart from that the landlord can use the security deposit for unpaid rent. At times, some landlords try making up things so that he/she can hold on your security amount for no reason. In this case getting a deposit back from the landlord becomes a task within itself.