If you’re renting (or planning to rent) a home in India, 2025 may bring the biggest shake-up to leasing norms in years. With the newly introduced Home Rent Rules 2025 — inspired by the Model Tenancy Act 2021 — many long-standing practices are being overhauled, with new protections for tenants, clearer obligations for landlords, and a formal rental ecosystem replacing opaque, informal agreements.
Here’s what’s changing — and why it matters.
🛡️ What’s New: Key Provisions
– Mandatory Digital / Online Registration of Rent Agreements
From now on, all tenancy agreements must be digitally stamped and registered online within 60 days of signing. No more relying on handwritten or informal contracts. Failure to register can attract penalties (starting at ₹5,000).
– Caps on Security Deposit: Relief from Huge Upfront Costs
For residential properties, landlords can no longer demand 6–10 months’ rent as security deposit. The new limit is a maximum of two months’ rent. For commercial properties, the cap is six months’ rent.
This is a huge relief in expensive metros — making shifting homes easier without draining savings.
– Regulated Rent Hikes & Predictable Renewals
Under the new rules:
- Rent can be increased only after 12 months.
- Any increase must come with at least 90-days written notice.
That means no more surprise jumps in rent partway through a lease.
– Formal Protections: Eviction, Entry, Repairs & Disputes
The 2025 rules bring structure to landlord-tenant interactions:
- Property Entry & Inspections: Landlords must give at least 24 hours’ written (or electronic) notice before entering. Arbitrary unannounced visits or inspections are no longer allowed.
- Evictions: Landlords cannot evict tenants unilaterally. Eviction requires a formal order from a designated “Rent Tribunal” — so no forced lock-outs, utility shutdowns or intimidation tactics.
- Repairs & Maintenance: If a tenant reports major repair or maintenance issues and the landlord fails to act within a certain timeframe, the tenant may have the right to address those repairs and deduct the cost from rent (with proper proof).
- Dispute Resolution: The law introduces a formal “Rent Authority” / “Rent Tribunal” system for resolving disputes — aiming to cut down on protracted legal battles and provide faster, fairer resolution.
✅ What This Means for Renters and Landlords
- For Renters: The new rules could dramatically reduce upfront costs (less deposit), make rent hikes predictable, and protect against arbitrary evictions — giving more security and flexibility, especially for young professionals, students or migrant workers in cities.
- For Landlords: While the law imposes more formalities, it also provides a clear, legally enforceable framework. With properly registered agreements and dispute-resolution mechanisms, landlords gain stronger legal standing if tenants default or misuse property.
⚠️ What to Watch Out For — Implementation Matters
The 2025 rules stem from a central model framework, but real enforceability depends on each state government. Since tenancy laws fall under the State List in India’s Constitution, each state needs to formally adopt or amend its rent laws for the provisions to become binding.
So if you’re renting or leasing now, make sure:
- Your agreement is properly digitised and registered;
- Security deposit demands follow the new caps;
- Rent-increase or eviction notices comply with the new format;
- You’re aware of your state’s local rules and the current status of implementation.
📝 What You Should Do (If You Rent or Lease)
- Request a digitally stamped, registered rent agreement (within the first 60 days).
- Ensure security deposit demanded doesn’t exceed two months’ rent (residential).
- Ask for any notice of rent increase or inspection/entry in writing.
- Keep proof of rent payments (bank transfer/UPI receipts — mandatory for higher rents).
- If landlord is unresponsive to repairs or attempts eviction without due process, consider contacting the state’s Rent Authority or Tribunal.
📣 Final Thoughts
The Home Rent Rules 2025 are a bold step toward formalising India’s rental market — moving it from arbitrary, informal practices to a system built on clarity, accountability and tenant-landlord fairness.
For renters, especially in major metros, this might finally make renting predictable, affordable and legally safe. For landlords, it pushes for transparent and enforceable contracts — even if it means more paperwork, it also reduces ambiguity and legal risk.