Meet Meera: a good flat, a new home, and a flat sitting empty
Meera is 38 and works in Hebbal. Last year she moved into a bigger home and kept her old 2 BHK, about 1,150 sq ft in a gated community in north Bangalore. The flat was empty for two months while she thought about what to do. In that time she still paid the society maintenance every month, so the flat was costing her money before it earned any.
She decided to rent it out. Like many first-time landlords, she thought the hard part was finding someone to pay the rent. By the end of the year she knew that finding a tenant is the easy half. The harder half is choosing the right one and putting everything in writing.
Chapter 1: The price that cost her three weeks
A friend told Meera that flats in her community were going for ₹30,000 to ₹34,000. She looked at her own flat, decided it was better than average, and listed it at ₹36,000.
| Asking rent per month | Weeks listed | Enquiries | Visits | Offers |
|---|---|---|---|---|
| ₹36,000 | 3 | 4 | 1 | 0 |
| ₹32,000 | 1 | 11 | 5 | 2 |
Each empty week cost Meera about ₹8,000 in rent she could have earned. Three empty weeks cost roughly ₹24,000, and the extra ₹4,000 a month she was hoping for would take six months to earn that back.
Chapter 2: Getting the flat ready, and what it cost
Before the new photos, Meera spent ₹14,000 on touch-up paint and a deep clean, and ₹3,500 to fix a dripping geyser. She took the pictures in daylight with the curtains open. The two offers that followed both mentioned that the flat “looked well kept”.
Chapter 3: The 8 steps that worked for Meera
This is the order she followed. For each step you can see what could go wrong, and what Meera did about it.
What can go wrong: Asking ₹36,000 because “the flat is premium” brought four calls in three weeks and one visit.
What Meera did: Meera checked what similar flats in her own society were actually asking, dropped to ₹32,000, and had two offers within a week.
What can go wrong: Scuffed walls, a dripping geyser and a dusty balcony make a good flat look tired, and tenants negotiate harder on tired flats.
What Meera did: She spent about ₹17,500 on touch-up paint, a deep clean and a geyser repair, then took photos in daylight.
What can go wrong: The first offer was ₹1,000 higher, but the applicant’s employer letter had a different spelling of his name and he could not name a previous landlord.
What Meera did: Meera asked every applicant for ID, an employer letter, the last three payslips and a previous landlord’s number. She chose the couple whose papers matched.
What can go wrong: Many gated communities will not allow a move-in until the tenant is registered with the association. Meera had left it to the last day.
What Meera did: The move-in slipped by two days. She now submits the tenant’s details to the local police station and the society office a week ahead.
What can go wrong: Verbal understandings about subletting, repairs, and who pays maintenance are the ones that turn into arguments.
What Meera did: The agreement covered the 11-month term, a 6-month lock-in, a 2-month notice period, a 5 percent yearly increase, no subletting, a repair limit and the deposit refund timeline.
What can go wrong: Without a list, “it was already like that” is impossible to disprove at the end of the stay.
What Meera did: Both sides signed a room-by-room list of fixtures and their condition, with dated photos stored by both.
What can go wrong: Cash and informal transfers leave no proof for you, for the tenant, or for your tax return.
What Meera did: Rent came by bank transfer on the 5th, and Meera issued a rent receipt every month.
What can go wrong: A last-minute conversation about the rent increase is how good tenants leave.
What Meera did: She spoke to the tenants in month 9, agreed a 5 percent increase and signed a fresh agreement before the old one ended.
Chapter 4: What went into Meera’s agreement
Her agreement was for 11 months, which is the usual term for an agreement that does not have to be registered. These are the clauses she was glad to have.
- Monthly rent of ₹32,000, due by the 5th, paid by bank transfer.
- A security deposit of ₹1,92,000, which is six months’ rent, refunded within a fixed number of days after the tenants vacate, less any agreed deductions.
- A 6-month lock-in and a 2-month notice period for both sides.
- A 5 percent rent increase on renewal.
- No subletting and no change of occupants without written consent.
- The tenant pays for minor repairs up to ₹1,000, the owner pays for the rest.
- Society maintenance paid by Meera. Some agreements pass it to the tenant, so decide this before you sign.
To understand the stamp duty and when an agreement must be registered, read our guide to rental agreement registration in Bangalore. For deposits and what an owner may deduct, read our guide to security deposit refund rules.
Chapter 5: What Meera really kept in year one
The rent is ₹32,000 a month, so it is tempting to say Meera earned ₹3,84,000. This is what actually reached her pocket. She lost one month of rent to the time the flat was empty, and she paid for things the rent does not cover.
| Item | Amount (₹) |
|---|---|
| Rent received (11 months at ₹32,000) | 3,52,000 |
| Society maintenance paid by Meera (12 months, illustrative) | − 54,000 |
| Property tax (illustrative) | − 9,000 |
| Painting and deep clean before listing | − 14,000 |
| Geyser repair before listing | − 3,500 |
| Agreement and e-stamp, her half (illustrative) | − 750 |
| What Meera kept in year one | ₹2,70,750 |
That is about ₹22,500 a month on average over 12 months, not ₹32,000. Most owners who plan around the headline rent are surprised by this.
And the tax
Rent is taxable as income from house property. Meera can deduct the property tax she paid, and then a standard deduction of 30 percent of what is left. Maintenance she paid to the society is not deducted. In this example:
| Step | Amount (₹) |
|---|---|
| Rent received | 3,52,000 |
| Less: property tax paid | − 9,000 |
| Net annual value | 3,43,000 |
| Less: 30% standard deduction | − 1,02,900 |
| Rental income added to her taxable income | ₹2,40,100 |
This example leaves out any home loan interest, which can reduce it further, and Meera’s rent is below the ₹50,000 a month level at which a tenant has to deduct tax at source. Read our guide to rental income tax for landlords for the details, and check your own figures with a chartered accountant.
Chapter 6: The renewal, and why Meera spoke early
In month nine Meera sat down with the tenants. She offered the 5 percent increase from the agreement, which made the new rent ₹33,600, and asked whether they planned to stay. They did. She prepared a fresh agreement, collected the new signatures and updated her records.
If you ever want to extend beyond 11 months, ask about registration first. And if a tenancy goes badly, the sooner you act in writing, the better. Our guide on what to do when a tenant does not vacate after the lease ends explains your options.
Where Meera is today
Her flat is now in its second year with the same tenants. It earns more than it cost her, and it takes about an hour of her month: a transfer to check, a receipt to send and a quick call if something needs fixing. She did not find the highest rent. She found a tenant she could trust and a paper trail she could point to.
Frequently asked questions
How much security deposit can I ask for in Bangalore?
In practice there is no single number. Several months’ rent is common, and many flats ask for six to ten months. A very high deposit can slow down finding a tenant, so compare with similar flats in your own society and agree the refund timeline in writing.
Do I have to register a rental agreement?
Agreements of up to 11 months are commonly signed on stamp paper without registration. A lease longer than one year needs to be registered. Our guide to rental agreement registration in Bangalore explains the costs and the process.
Is the rent I receive taxable?
Yes. Rent from a house is taxed as income from house property. You can deduct the property tax you paid and a standard deduction of 30 percent of the remaining amount. If your tenant pays more than ₹50,000 a month in rent, they also have to deduct tax at source. Rules change, so confirm current figures with a chartered accountant.
Is police verification of a tenant required?
It is strongly advised and many societies ask for it before move-in. Follow your local police station’s current process and keep the acknowledgement with the agreement.
How long does it take to find a tenant?
A well-priced flat in a gated community often gets enquiries in the first week. Meera’s took about five weeks, and most of that was her own first price being too high.
What if a tenant stops paying or will not vacate?
Start with a written notice that refers to the agreement, and keep every payment record. Our guide on what to do if a tenant does not vacate after the lease ends explains the options.
Renting out your flat? Do what Meera did.
ApkaComplex helps owners find verified tenants, complete KYC and police verification, and prepare the rental agreement, so you can let your flat with every paper in place.
View servicesRules last verified: October 2026. This article is general information, not legal, tax or financial advice. Rents, deposits, stamp duty, registration requirements and income tax rules change often. Confirm current requirements with the Income Tax e-filing portal, your local sub-registrar office, and a qualified advocate or chartered accountant.