The number of tenants and landlords in the country is rising rapidly, leading to an increase in property-related disputes.
To reduce these issues, the government has introduced the New Rent Agreement 2025.
These rules are based on the Model Tenancy Act (MTA)
and the latest budget provisions. They aim to make the rental system more organised and transparent.
Under the new system, tenant registration will become easier, landlords cannot ask tenants to vacate without proper notice,
and tenants must pay two months’ advance rent for residential properties. Rules have also been updated for renting commercial spaces.
Mandatory Rent Agreement Registration
According to the new rules, every rental agreement must be registered within two months of signing.
You can register the agreement in two ways:
Through your state’s online property registration portal
By visiting the nearest registrar office
If the agreement is not registered on time, a penalty of ₹5,000 will be charged.
Key Changes for Tenants
Mandatory Registration
An unregistered agreement will not be considered valid.
Security Deposit Limit
Residential property: Maximum two months’ rent
Commercial property: Up to six months’ rent
Controlled Rent Hike
Landlords cannot increase rent arbitrarily. They must follow the prescribed rules and give prior notice.
Protection Against Sudden Eviction
Tenants cannot be asked to vacate the house without completing the legal procedure.
Faster Dispute Resolution
Special rent courts and tribunals will handle disputes, with a goal to resolve cases within 60 days.
Benefits for Homeowners
Higher TDS Exemption
The annual TDS limit has increased from ₹2.4 lakh to ₹6 lakh, providing more financial relief.
Easier Tax Reporting
Rental income will now be counted directly as Income from Housing Property.
Quick Action on Non-Payment of Rent
If rent is unpaid for three months or more, the landlord can approach the Rent Tribunal for faster resolution.
Tax Benefits on Repairs
Homeowners may receive tax exemptions under state schemes for repairs, improvements, or for offering rent at a lower rate.
How to Register a Rent Agreement
Visit your state’s property registration website
Upload ID proof of both landlord and tenant
Fill in rent amount and terms
E-sign and submit the form
