Short answer: advance rent in Dhaka is usually a lump sum worth several months' rent, paid when you sign. Depending on the owner, it is either held as a security deposit and refunded at the end, or adjusted against later months' rent. Agree the amount, the treatment and the refund date in the lease, pay by bank transfer and keep a signed receipt.
For many foreigners, the upfront payment is the biggest surprise of renting in Dhaka. Alongside the first month's rent, owners commonly ask for an advance or a security deposit before handing over the keys. This guide explains how advance rent in Dhaka and the security deposit on an apartment usually work, what is negotiable, how to document the payment and how to get the money back at the end. Practice varies from owner to owner, so treat the points below as common patterns, not fixed rules.
What is advance rent in Dhaka?
"Advance" is the word most Dhaka owners use for money paid upfront on top of the first month's rent. In practice it takes one of two forms, and the lease should say which:
- Adjustable advance. The advance is set off against rent later in the tenancy, often spread over a number of months or applied to the final months. You pay less rent in those months, and nothing is refunded at the end because it has already been used.
- Refundable security deposit. The money is held for the full term and returned when you leave, minus any agreed deductions for unpaid bills or damage beyond fair wear and tear.
Some owners combine the two, for example a smaller refundable deposit plus an adjustable advance. The important thing is that the treatment is written down, because "advance" can mean different things to different people.
How many months' deposit is normal for an apartment in Dhaka?
There is no single standard. Owners commonly ask for somewhere between two and six months' rent, and larger family homes and newer buildings in the diplomatic and corporate areas may sit at the higher end. Two examples from properties we list show the range:
| Listing (from our current properties) | Monthly rent | Upfront terms stated by the owner |
|---|---|---|
| 4-bedroom unfurnished apartment, Gulshan-1 | BDT 250,000 | 3 months' advance, refundable on completion of the tenure; minimum 2-year lease |
| 4-bedroom independent house, Uttara Sector 14 | BDT 300,000 net, plus BDT 25,000 service charge | Security deposit of BDT 600,000, roughly two months' net rent |
For current rents by area, see the Dhaka apartment rent price guide or browse our available properties. Serviced apartments on monthly terms often ask for a smaller deposit, so if you are staying only a few months, read about serviced apartments in Dhaka.
Is the advance negotiable?
Often, yes, within reason. Owners ask for large advances mainly for reassurance. Anything that reduces their risk can reduce the amount:
- A corporate or organisational lease. Where an embassy, UN agency, NGO or company signs, owners may accept a lower deposit.
- A longer term. Committing to two years instead of one can be traded for a smaller advance.
- Quarterly or half-yearly rent in advance instead of a large deposit, if your employer pays that way.
- Adjustment instead of refund. If an owner insists on a large sum, ask for part of it to be adjusted against rent so it is not locked up for the whole term.
Negotiate the deposit together with the rent, service charge and repairs, not in isolation. A slightly higher rent with a smaller deposit may suit a tenant with a short posting better than the reverse.
What should the lease say about the deposit?
Make sure the written agreement covers each of these points. Our guide to rental agreements in Bangladesh for foreigners explains the rest of the lease.
- The exact amount, in taka, and the date paid.
- Whether it is refundable, adjustable, or split between the two.
- If adjustable, the schedule: which months and how much per month.
- If refundable, the refund deadline after handover, for example within a stated number of days.
- What can be deducted: typically unpaid rent, unpaid utility bills and documented damage beyond fair wear and tear.
- What happens to the deposit if you leave early under a diplomatic or transfer clause.
How should you pay and document the deposit?
Pay by bank transfer or cheque to an account in the owner's name wherever possible, so there is an independent record. If cash cannot be avoided, count it in front of a witness and get a receipt signed on the spot. Every receipt should show:
- the owner's name and signature,
- the tenant's or organisation's name,
- the property address,
- the amount in figures and words,
- what the payment is for (advance, security deposit or rent, and for which months),
- the date.
Keep scans of the receipts with your signed lease. Corporate tenants will usually need formal receipts for their own accounts in any case.
What other upfront costs should you budget for?
The advance is rarely the only payment on day one. When you plan your move-in budget, allow for:
- the first month's rent, usually paid in advance,
- the first month's service charge, if it is billed separately,
- an agency or brokerage fee, where one applies, agreed in writing before viewings,
- an initial top-up for a prepaid electricity or gas meter,
- internet installation and any router or equipment deposit,
- items missing from the inventory, such as extra curtains, water filters or kitchenware.
Asking for a single written summary of every upfront amount before you commit avoids surprises on handover day.
How do you get your security deposit back when you move out?
Deposit disputes usually come down to evidence. The steps that protect you start on the first day, not the last:
- Move-in inventory. A dated list of every item and its condition, signed by both sides, with photos or a short video of each room.
- Report problems early. Tell the owner in writing about faults as soon as they appear, so they are not blamed on you later.
- Give notice properly. Serve written notice as the lease requires and agree a move-out date.
- Settle final bills. Record the final electricity, gas and water readings and pay any outstanding bills and service charge.
- Joint move-out inspection. Walk through the apartment with the owner or their representative against the original inventory, and note any agreed deductions in writing.
- Confirm the refund in writing. Agree the amount and the date, and return the keys against a signed handover note.
Fair wear and tear, such as faded paint or normal use of furniture, is not usually a fair reason for a deduction. Breakage, missing items and unpaid bills are.
What if the owner delays the refund?
Start with a calm written reminder that refers to the lease clause and the move-out inspection note. Most delays are resolved this way. If you have already left Dhaka, a colleague, your employer's administration team or your agent can follow up on your behalf. If the matter becomes a real dispute, speak to a local lawyer rather than relying on informal advice.
How Rent Property helps document your advance and deposit
When we arrange a let, Rent Property helps agree the deposit terms in the English-language lease, prepares the handover inventory, records meter readings and supports the move-out inspection. For organisations moving staff to Dhaka, deposit handling and deposit-recovery support are part of our corporate relocation service. We cannot guarantee any owner's decision, but clear paperwork makes a fair outcome much more likely.
Ask us on WhatsApp
Unsure whether an advance request is reasonable, or how to word the refund clause? Message Rent Property on WhatsApp at +880 1784-222255 and we will usually reply within one working day. Send us a WhatsApp message.