For many tenants the security deposit is the single largest payment they make when they rent a home — often two or three months’ rent, and in some cities much more. Once paid, it usually sits in the landlord’s account, unrecorded, until move-out. It is described as “dead money” because for the length of the tenancy it does nothing for the person it belongs to, and getting it back depends on goodwill.
The real risks
- No receipt or record of the amount paid.
- Deductions made without evidence of damage.
- Delays of weeks or months before the balance is returned.
- The money is simply spent, leaving nothing to return.
What good practice looks like
- Agree the deposit in writing — the amount, what it can be used for, and when it is returned.
- Pay it through a traceable channel and get a receipt or certificate.
- Have it held by a regulated partner rather than in a personal account.
- Record the flat’s condition at move-in, room by room, with photos both sides acknowledge.
- At move-out, compare the same items and deduct only for documented damage beyond normal wear.
Can a deposit earn anything?
Only if a regulated partner offers a product that allows it and the law permits it — and then only on the terms that partner publishes. UNETRA does not promise returns on deposits. Our focus is the part that matters most: that the money is documented, protected and returned on time.
The Model Tenancy Act, 2021 proposes a cap of two months’ rent for residential deposits in states that adopt it.
Sources
General information, not legal or financial advice. UNETRA is a technology platform; regulated services are provided by partners under their own terms.