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Verified Rental Data Could Transform India’s Housing Market

Tenants usually pay landlords a security deposit when they move into a home.

This money is meant to cover unpaid rent or damage and should normally be returned later.

India’s rental market has about ₹1.26 lakh crore tied up in these deposits.

Landlords often do not know a tenant’s past payment record.

Tenants may also not know how landlords decide deductions from their deposits.

Verified rental records could give both sides clearer information.

Banks might use regular rent payments when considering some housing-related financial products.

Digital rental agreements could make renting more organized and reduce disagreements.

Key facts

Security deposits: Refundable payments intended to protect landlords against unpaid rent, property damage or other dues.
Estimated deposits: ₹1.26 lakh crore is described as tied up in India’s rental market.
Residential deposit cap: The Model Tenancy Act caps residential security deposits at two months’ rent where adopted by a state or Union Territory.
Commercial deposit cap: Commercial security deposits can be up to six months’ rent under the Model Tenancy Act.
Verified rental data: May show a tenant’s payment behaviour, financial stability, payment capacity and tenancy history.
Potential financial uses: Rental payment behaviour could inform security-deposit financing, rent-linked credit and other housing-related services.
Tenant documentation: Rental agreements should state the deposit, permitted deductions and refund timeline; tenants should document property condition.

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