₹6 lakh sitting in a stranger's bank account for 3 years. Here's what regulated escrow changes — and what it costs.
A 10-month deposit on a ₹60,000 Bengaluru 2BHK is ₹6 lakh. For three years it sits in the landlord's savings account, earning them ~4% (₹72,000) while you earn zero. At move-out, you depend entirely on their goodwill to get it back. This is the default — and it's broken.
What regulated escrow actually means
- Funds held by an RBI-regulated trustee (not Propey, not the landlord).
- Neither party can withdraw unilaterally — release rules are coded in the agreement.
- Interest accrues to the tenant at the prevailing savings rate.
- Auto-release on agreement end-date if no claim is filed in 7 days.
The cost
Propey charges a one-time escrow setup fee of ~1% of the deposit (capped at ₹4,999) plus a small annual custody fee. On a ₹6 lakh deposit that's roughly ₹6,000 setup + ₹2,400/yr — less than the interest the tenant earns back, so the net cost to you is typically negative.
Who benefits more, tenant or landlord?
Both. Landlords get verified tenants, on-time rent (auto-debit), and a documented condition report that protects against false damage claims. Tenants get their money safe, transparent deductions, and a 7-day dispute window with independent reviewers.