‘Rs 2 Lakh Deposit For Rs 20K Rent’: 10-Month Advance Sparks Outrage Among Metro City Renters | Business News

Last Updated:July 07, 2025, 18:05 IST

The urban youth face housing exploitation amid job market shrinkage in Bengaluru as landlords demand up to ten months’ rent as a deposit, sparking outrage and calls for regulation

As the job market continues to shrink and layoffs rattle corporate corridors, a new crisis is tightening its grip on the urban youth, i.e. housing exploitation. Young professionals migrating to metro cities in search of opportunities now find themselves caught in a punishing loop, between shrinking job security and exorbitant rental demands.

In Bengaluru, where thousands of tech graduates and startup workers relocate each year, the situation is especially dire. Landlords have reportedly begun demanding up to 10 months’ rent as security deposit, a staggering sum that for many has become unaffordable. A viral post on Reddit captured the sentiment succinctly, that said, “Rs 2 Lakh deposit for Rs 20,000 rent?”

The post, shared by a young professional working in the tech sector, triggered a digital storm, as the user asked, “Guys, I have no words. Just explain me this.” Within hours, users from across cities like Bengaluru, Chennai, and Pune flooded the comments section with similar tales of unaffordable deposits and arbitrary rental clauses. Many rallied under the trending hashtag #JagoKirayeJago, a sarcastic play on “Jago Grahak Jago” (a government consumer awareness slogan), urging tenants to unite against what they call a landlord-driven “extortion racket.”

One user commented, “In Hyderabad and Pune, landlords ask for a two to three-month deposit. But in Bangalore, ten months’ rent upfront has become the new normal. How is a fresher supposed to survive here?”

See the viral post here:

In Chennai, too, tenants reported similar exploitation. “Our rent is Rs 26,000 and the landlord demanded Rs 2.6 lakh as a deposit,” one frustrated user wrote, adding, “And if anything breaks, even a switch, they deduct without discussion.”

As the outrage grew, many began calling for regulation and legal intervention. Some tenants voiced plans to organise peaceful protests and collective refusals to pay inflated deposits unless formal guidelines are enforced.

Landlords, on their part, defend the practice, claiming high deposits are necessary to cover repair costs or damage. “Tenants leave without notice, fans and geysers are often broken, and it’s tough to recover damages later,” one Bengaluru landlord told a local housing forum. “That’s why we insist on large deposits upfront,” he added.

But critics argue that such justifications do not hold water, especially when formal rent agreements are already in place. Tenants say that high deposits often result in arbitrary deductions during move-outs, with little recourse.

For many young renters already grappling with job insecurity, these exploitative housing demands are adding to the stress. With companies downsising and hiring freezes in place, the hope of financial stability is dimming, and for those living in rented metro flats, even the roof over their head feels precarious.

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