India, Feb. 7 -- Ashwin G has been searching for flat mates in Bengaluru's prime areas like HSR Layout and Koramangala for over a month due to steep rentals- Rs.40,000 for a 1BHK and Rs.75,000-90,000 for a 2/3 BHK-and an equally exorbitant deposit amount of up to Rs.4.8 lakh. With rentals increasing by 20-30% in the IT Capital over the past two years, the high deposit demands leave potential tenants struggling to afford a place.

In Bengaluru, landlords typically ask for a security deposit of 6-10 months of rent. So, for an apartment with a rent of Rs.40,000 or more, the deposit will be Rs.4.8 lakh. The high-security deposits have made it difficult for new employees moving to the city to rent apartments.

"We see several tenants strugglin...