Splitting the security deposit with flatmates
The deposit is often the single biggest payment of a lease, and the one most likely to cause a fight when someone moves out. A few decisions at the start prevent almost all of it.
How big are deposits in India?
It depends a lot on the city. Deposits of 2–3 months’ rent are common in many cities, while Bengaluru has long been known for 6–10 months. The Model Tenancy Act, 2021 suggests capping residential deposits at two months’ rent, but it only applies in states that have adopted it, so check what applies to your city and what your agreement says. Either way, it’s a big sum: on a ₹45,000 flat, even a two-month deposit is ₹90,000.
Rule 1: Split the deposit the same way as the rent
If the rent is split by room size, split the deposit by the same percentages. It’s simple, and it means the person who gets the bigger room also has more at stake if the flat is damaged. In the 3BHK example, a ₹90,000 deposit would be split ₹36,600 / ₹26,700 / ₹26,700.
Rule 2: Write down who paid what, and when
Usually one person transfers the whole deposit to the landlord and the others pay them back. Record it immediately: each flatmate’s share, the date and the UPI reference. Years later, when the lease ends, nobody will remember. A shared group in ttmm with a “Deposit” expense keeps it on record for everyone.
Rule 3: Decide now what happens when someone leaves early
Landlords return the deposit at the end of the lease, not when one flatmate moves out. The common, fair solution is:
- The incoming flatmate pays the outgoing one their deposit share directly. The landlord’s deposit doesn’t change.
- If nobody replaces them, the remaining flatmates either pay the outgoing person back (and own a bigger share of the deposit), or the outgoing person waits until the lease ends. Agree which one in advance.
- Before they hand over, walk through their room together and agree on any damage, so the new person isn’t paying for the old person’s broken cupboard.
Rule 4: Agree how deductions are shared
When the lease ends, landlords often deduct for painting, cleaning, damage or unpaid bills. Split them like this:
| Deduction | Who pays |
|---|---|
| Normal painting and deep cleaning | Everyone, in deposit proportion |
| Damage inside one room | The person in that room |
| Damage in shared areas | Everyone equally, unless someone owns up |
| Unpaid utility bills | Whoever’s share was unpaid |
Rule 5: Photos on day one
Take timestamped photos and a video of every room, the kitchen, bathrooms, fittings and meter readings when you move in, and share them with the landlord on WhatsApp so there’s a dated record. Most deposit disputes are about the state the flat was in at the start, and photos end them.
Getting it back
When the landlord returns the deposit, often to one person’s account, add it to ttmm as a payment from the landlord split by deposit shares (minus any agreed deductions), and settle up the same day. Don’t let a refund sit in one person’s account “for a few weeks”.
A short deposit checklist
- Deposit amount and each person’s share agreed and recorded
- Move-in photos and meter readings shared with the landlord
- Rule for early exits agreed
- Rule for deductions agreed
- Rental agreement copies with every flatmate
Questions
How should flatmates split a security deposit?
In the same proportion as the rent. If rent is split by room size, the deposit follows the same percentages.
What happens to my deposit if I move out early?
Usually the person who takes your room pays you your share directly. If nobody does, the flat should agree in advance whether they pay you back or you wait for the lease to end.
Who pays for damage when the deposit is returned?
Damage in a room is paid by the person in that room; normal painting and cleaning are shared.
