India, March 13 -- During a recent apartment visit in Bengaluru, a senior company executive looking for a flat in the upscale Defence Colony area of Indiranagar decided almost instantly that he wanted to rent the property. With the monthly rent set at about Rs.2.5 lakh and concerns that other prospective tenants might also show interest, the executive transferred an amount equivalent to one month's rent as token money to secure the flat, brokers involved in the transaction said.

Real estate brokers note that such token payments are becoming increasingly common in Bengaluru's highly competitive rental market, where limited supply means homes are often finalised within hours of listing. Tenants are paying this advance to ensure landlords h...