11-month rent agreement and security deposit in Bangalore
Why almost every Bengaluru rent agreement runs for 11 months, what it costs in stamp duty, and what to write about the deposit.
Bengaluru agreements run 11 months because a lease of more than a year has to be registered, and registration costs more. The security deposit is often several months’ rent, and we could not find a binding legal limit, so write the amount, the refund date and the deductions into the agreement.
Why 11 months?
Under the Registration Act, 1908, a lease for more than one year, or from year to year, must be registered at the sub-registrar’s office. A lease for 11 months does not. That one rule is why the 11-month agreement became the standard for homes in Bengaluru.
Stamp duty is the other reason. The Karnataka Stamp Act, 1957 (Article 30 of the Schedule) charges a residential lease of one year or less 50 paise for every ₹100, with a maximum of ₹500. Above one year, up to ten years, the rate doubles to ₹1 for every ₹100, and there is no maximum.
| Rent ₹25,000, deposit ₹1,00,000 | 11 months | 24 months |
|---|---|---|
| Stamp duty | ₹500 (capped) | ₹4,000 |
| Registration at the sub-registrar | Not needed | Required, with its own fee |
You can try your own numbers in the stamp duty calculator.
What happens after 11 months
The agreement ends on its end date. If you both want to stay on, sign a new agreement with the new rent and dates, rather than relying on a verbal “same as before”. A new agreement is a new document, so it is stamped again.
If you are renewing, you do not need to start over. Upload last year’s agreement and we fill the form in for you.
Security deposit in Bengaluru
How much is usual
Deposits in Bengaluru are often several months’ rent, and in some areas up to about ten months. That is much more than the one or two months common in many other cities. It depends on the area, the type of property and how much furniture is included. It is a market habit, so it can be negotiated.
Is there a legal limit?
We could not find a binding limit in Karnataka law. The central Model Tenancy Act, 2021 suggests a maximum of two months’ rent for homes, but it only applies in a state that passes its own law based on it, and the sources we checked say Karnataka has not. A few websites say a Karnataka amendment adopted the two-month limit. We could not confirm that, so treat it as unproven. If the amount is a sticking point, ask a lawyer before you sign.
Does the deposit change the stamp duty?
Yes. The Act counts “money advanced”, which it says includes a security deposit, whether refundable or adjustable towards rent, in the amount the duty is charged on. For an 11-month agreement the ₹500 maximum hides this for most homes.
What to write down about the deposit
- The amount and how it was paid. Pay by bank transfer or UPI so there is a record.
- When it is returned, as a number of days after the tenant hands back the keys.
- What can be deducted: unpaid rent, unpaid bills, and damage beyond normal wear.
- Whether it can be adjusted against the last month’s rent. If the agreement is silent, the owner keeps it until the tenant leaves.
- Interest. Deposits normally carry none. Say so.
A sample clause
A sample for guidance, not legal advice. Change the numbers and wording to match what you agree.
Mistakes to avoid
- Writing “12 months” or “1 year” and assuming it needs no registration. Stay at 11 months unless you plan to register.
- Handing over a large deposit in cash with nothing in writing.
- Leaving the refund date and the deductions out of the agreement.
- Moving on after 11 months with no new agreement.
- An agreement that is not e-stamped, which is hard to rely on in a dispute.
Last checked 2 November 2026 against the Karnataka Stamp Act, 1957. Laws and rules change. We are a documentation service, not a law firm, so for a dispute speak to a lawyer.
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Your questions
Is an 11-month rent agreement mandatory in Bangalore?
No law says an agreement must be for 11 months. It is a habit with a reason: a lease of more than a year, or from year to year, has to be registered under the Registration Act, 1908, and registration costs more and takes a visit to the sub-registrar. Keeping to 11 months avoids that.
Can I make a rent agreement for more than 11 months without registering it?
Not safely. A lease longer than one year must be registered. If you want a longer term, plan for registration, the higher stamp duty, and the registration fee.
What happens when the 11 months end?
The agreement ends on its end date. If you both want to carry on, sign a new agreement, usually with the new rent and dates. Do not leave it to a verbal understanding. A new agreement is a new document and is stamped again.
How much security deposit is normal in Bengaluru?
Often several months’ rent, and in some areas up to about ten months. It varies by area, the type of property and how much furniture is included. It is a market habit, not a rule, so it is yours to negotiate.
Is there a legal limit on the security deposit in Karnataka?
We could not find a binding limit. The central Model Tenancy Act, 2021 suggests two months’ rent for homes, but a state has to pass its own law for it to apply, and the sources we checked say Karnataka has not. A few websites claim an amendment; we could not confirm one. If the amount matters, ask a lawyer.
Does the security deposit raise the stamp duty?
Yes. The Karnataka Stamp Act counts money advanced, which includes a security deposit, in the amount the duty is charged on. For an 11-month agreement the duty is capped at ₹500, so you only notice it when the rent and deposit are small.
Can the tenant adjust the deposit against the last month’s rent?
Only if the agreement says so. If it does not, the deposit is held until the tenant leaves. Write down what you agree, because this is a common cause of arguments.
When should the owner return the deposit?
Whenever the agreement says. A common choice is within a set number of days of the tenant handing back the keys and the owner checking the flat. Put the number of days in writing.