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Renting a home or leasing a commercial space in India was never simple when you moved away from home for work. Once you found a place, everyone noticed that most rentals were made verbally, whether on paper or informally, which led to a lot of confusion, disputes, and legal problems. To solve the problem, the government proposed new house rental laws that everyone should know. This law can lead to a safer, fairer, and more transparent environment for the tenant and the landlord.
In this post, we will look at the new rental regulations that the government has just revised and realise that rental laws are something that everyone, whether they are a property owner, renter, or real estate investor, should be aware of before renting a home.
For a long time of period India’s rental houses have not been regulated, which leads to:
When these issues increase, the government introduces structured tenancy guidelines, such as the Model Tenancy Act, to create a balanced and transparent rental ecosystem.
Indian tenant law revolves around the following acts:
Now tenants must have a digitally stamped and online-registered rent agreement within 60 days you signing a contract. Registering online is mandatory now as per the new rule for the rent agreement.
Landlords cannot charge more than 2 months’ rent as a security deposit for residential properties, and if you are looking for commercial, then the security deposit cannot exceed 6 months’ rent.
If the agreement is not registered, it may incur a penalty starting from INR 5,000, depending on the state. This resolves the long-standing issue of unregistered handwritten contracts that can lead to legal ambiguity and tenant exploitation.
Landlords can only increase rent after 12 months by giving a 90-day written notice to the tenant, and if something in the rented house requires repair, the landlord should have to fix it within 30 days, and if the landlord fails to fix then the tenant can fix it on their own by deducting the repair cost from rent.
Landlords must give the tenant at least 24 hours written notice before entering the rented premises, and the tenant can be evicted from the premises only on legally approved grounds. A landlord can’t force a tenant to leave without due proves.
Police verification of the tenant is necessary before moving into the rented property, and if a landlord forcibly evicts a tenant or cuts water and electricity supply, legal punishment can be imposed on the landlord.
These agreements help not just for tenants but also for landlords, so everyone should know what their rights are and the legal framework governing them in India.
Right to written agreement – if a tenant wants a written rental agreement, you can’t deny which should be signed by both parties, and it is applicable for the landlord also.
Right to privacy – When you enter in property, then it is your home, and nobody has the right to enter those premises without your permission under Article 21 of the Constitution.
Right to fair rent – Under the Model Tenancy Act, the rent should be mutually agreed upon and documented, which allows for appeal if the landlord charges unreasonable rent.
Right to security deposit refund – Tenant allows landlord to collect a security deposit as clearly stated in the agreement, as per the Model Tenancy Act, after adjusting the bills and any damage.
Right to receive rent on time – Landlords have the right to timely rent payments as per the agreement. If the tenant fails, it can issue a legal notice for recovery
Right to Increase Rent – as per the terms of the agreement landlord can increase the rent.
Right to evict tenant – if there is non-payment of rent for two months, illegal activities on premises, and violation of the rental agreement.
Right to compensation for property damage – if property is damaged by the tenant, the landlord has the right to claim compensation or deduct it from the security deposit.
| For Tenants | For Landlords |
| Advance deposit will be reduced, which helps lower financial burdens | With digital marketing, contracts defend rental revenues and real estate |
| With this new regulation, there is legal protection of tenants from sudden eviction, unfair increases in rent | Documentation fraud will stop or fraudulent claims on the part of tenants |
| Everything is put in writing, so no chance of any misunderstanding | If there is damage, non-payment of rent, or contravention of the contract, landlords can take legal action. |
| For dealing with disputes, it is a quick resolution | With proper agreement, there is an organised rental system |
By Landlords:
By Tenants
For Landlords:
For Tenants
People Property Point will assist you with the drafting of legally binding rental agreements and offer advice on rental legislation and documentation. Whether you are renting your first property or managing many properties, with an experienced worker from People Property Point will provide you with peace of mind. They offer:
The rental market is growing more regulated and reliable thanks to uniform deposits, explicit eviction procedures, and structured agreements. The secret to preventing conflicts and establishing enduring rental relationships is to stay informed. People Property Point is your go-to resource for professional advice and real estate solutions when navigating India’s changing rental market.
If you are looking for residential property, there will be 2 months’ rent as a security deposit, depending on the state.
No, you cannot increase rent arbitrarily; you must mutually agree upon and state in the rent agreement with proper prior notice.
They assist landlords and tenants with legally compliant rent agreements, documentation, property consultation, and smoother rental transactions.
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