India’s rental system is finally getting a clean-up, and the change will be felt most in cities like Bengaluru and Mumbai.
For years, tenants struggled with huge security deposits and unclear agreements.
The new Home Rent Rules 2025 now bring structure, transparency, and fairness for both tenants and landlords.
These rules build on the Model Tenancy Act and aim to reduce heavy upfront payments while ensuring everyone follows one clear format.
Security Deposits Now Capped at Two Months’ Rent
This is one of the biggest reliefs for renters in major cities.
Earlier, tenants in places like Bengaluru and Mumbai often paid 6 to 10 months’ rent as a deposit.
That system is now illegal.
Under the new rules:
Landlords can ask for a maximum of two months’ rent as the security deposit.
This change aligns India with global standards and reduces financial stress for tenants.
Registration of Rental Agreements Becomes Mandatory
For years, renting a house often meant relying on verbal promises or handwritten agreements.
This caused confusion and disputes later.
Now, the rules are strict and clear:
Every rental agreement must be registered within two months.
Registration can be done online or at the local registrar office.
Skipping registration will lead to a ₹5,000 penalty.
A standard rental agreement template has also been introduced.
This prevents last-minute unfair clauses from being added by either party.
Rent Hikes Will Be Predictable
Sudden rent increases will no longer catch tenants off guard.
The new rules make rent adjustments clear and systematic.
Key changes include:
Rent can be increased only once per year.
Tenants must receive a 90-day notice before any hike.
If monthly rent is above ₹5,000, payment must be digital.
For rents above ₹50,000 a month, TDS will be deducted.
This makes the entire rent process cleaner, safer, and more transparent.
Faster and Fairer Dispute Resolution
Rental disputes earlier lasted for years, leading to frustration for both tenants and landlords.
The new system aims to end that.
Special Rent Courts and Tribunals will now handle all rental issues.
Cases must be settled within 60 days.
This means quicker solutions for problems related to deposits, maintenance, or evictions.
