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    Security Deposit Escrow: How It Protects Both Tenants and Landlords

    By Mypropey Editorial Team · 5 min read · 2026-02-01

    Security deposit disputes are the #1 source of friction in Indian rentals. Escrow fixes that by removing the trust gap.

    How escrow works

    The tenant transfers the deposit to a regulated escrow account held by Mypropey. The landlord cannot withdraw it during the tenancy.

    At move-out, deductions for verified damages or unpaid rent are released to the landlord; the remainder is returned to the tenant within 7 days.

    FAQs

    Who holds the security deposit?

    Mypropey holds it in a regulated escrow account — neither the landlord nor the tenant can move the funds unilaterally.

    How quickly is the deposit refunded?

    Within 7 days of move-out, after both parties confirm the inspection report.