Introduction

Renting a home in India has always involved confusion, paperwork, and inconsistent rules that vary across states. In many cities, landlords still use handwritten rent agreements, tenants often pay huge security deposits, and disputes can drag on for years. To fix these long-standing issues, the Government of India has proposed the New Rent Rules 2025, aimed at making renting transparent, digital, fair, and legally secure for both landlords and tenants.

These rules are inspired by the Model Tenancy Act (MTA), which acts as a guiding framework for states. Because “Land and Tenancy” come under the State List, each state must either adopt these rules, amend its existing rent laws, or pass a new legislation for the 2025 rules to actually become enforceable in that state.

However, the 2025 framework gives a clear, modern structure that most states are expected to follow soon.

Also Read: How to Make a Rent Agreement Online in India: A Step-by-Step Guide

What Are the New Rent Rules 2025?

The New Rent Rules 2025 are a modern set of rental guidelines that make renting homes and commercial spaces simpler, digital, and better regulated across India. These rules aim to:

1. Reduce landlord–tenant disputes

2. Ensure legal protection for both parties

3. Promote digital documentation

4. Control unfair security deposits

5. Introduce systematic rules on rent increase

6. Speed up dispute resolution through tribunals

7. Modernize India’s rental housing ecosystem

These rules are not automatically applicable nationwide. States must adopt or adapt them into their local laws.

Also Read: New Rental Rule from July 1: No Digital Stamp? Pay ₹5,000 Fine!

Key Objectives of the New Rent Rules 2025

1. Promote Digital Renting

Every rent agreement must be registered online, digitally stamped, and verified.

2. Reduce Legal Disputes

Clear timelines and rules reduce confusion, manipulation, and false claims.

3. Protect Tenants From Harassment

Rules against lockouts, forced evictions, or service disconnection.

4. Protect Landlords From Illegal Occupancy

Eviction timelines made simpler and legally enforceable.

5. Bring Transparency in Deposits & Rent Hikes

Deposit caps and rent increase rules prevent exploitation.

Also Read: Paying ₹55,000 Rent On Time? You May Still Face ₹1 Lakh TDS Penalty—Here’s Why

Not a Central Law — States Must Implement It

One of the most important points to understand:

The New Rent Rules 2025 are NOT automatically enforceable across India.

Why?

1. “Land and Tenancy” fall under Entry 18, State List (List II) of the Constitution.

2. This means states have exclusive powers to frame tenancy laws.

The Central Government has simply created a modern template.
For the rules to apply:

1. Each State Legislature must pass a new act or

2. Amend its existing Rent Control Act

States like Maharashtra, Karnataka, Delhi, Tamil Nadu, Gujarat, and Uttar Pradesh are already reviewing their rent laws to align with the 2025 framework.

Also Read: Why you should get your rent agreement registered

Biggest Changes Under the New Rent Rules 2025

This is where the New Rent Rules create the strongest impact:

a) Mandatory Online Rent Agreement Registration (Within 60 Days)

One of the biggest transformations:

Every rent agreement must be registered online within 60 days of signing.

This includes:

1. Residential rental agreements

2. Commercial property agreements

3. Partial rentals

4. Shared accommodation (PGs/hostels with formal contracts)

Earlier Situation

1. Handwritten agreements were accepted in most states

2. No uniform requirement for registration

3. Frequent fraud

4. Landlords manipulating unregistered agreements

5. Tenants having no legal proof of tenancy

Now Under 2025 Rules

1. Online portal (state-level) facilitates registration

2. Digital stamp duty

3. Aadhaar + e-KYC verification of both parties

4. Automatic upload of rental records

5. Instant downloadable agreement

6. Legally enforceable in Rent Tribunal

Penalty for Non-Registration

1. States may impose penalties starting ₹5,000 + daily fines until registered.

2. Some states may make it mandatory for police verification too.

This rule alone can prevent 85% of tenancy disputes (as per Ministry of Housing estimates).

b) Security Deposit Limits Made Uniform Across India

Another major reform:

Residential Property

Maximum 2 months’ rent as security deposit

Commercial Property

Maximum 6 months’ rent as security deposit

Why this rule matters?

In big cities like Bengaluru, Chennai, Mumbai, Pune, and Hyderabad, many landlords demand:

1. 6 months’ rent

2. 10 months’ rent

3. Sometimes even 1 year’s rent

This creates major burden on tenants.

The 2025 limit ensures:

1. Affordability for tenants

2. Reduced exploitation

3. Greater transparency

4. Lower entry cost when shifting cities

States may add penalties for overcharging deposits.

c) Rent Increase Rules: No Surprise Hikes

Under new rules:

Rent can only be increased after 12 months.

And:

Landlord must give 90 days’ written notice before increasing rent.

Benefits:

1. Tenants get enough time to plan

2. Landlords follow a regulated, predictable rent increment pattern

3. No abrupt or unreasonable hikes

4. Ensures transparency in long-term tenancy

States may additionally define a maximum percentage of increase per year (usually 3–5%).

d) Stronger Tenant Protection Against Unlawful Evictions

The 2025 rules clearly state:

A landlord CANNOT evict a tenant without an eviction order from the Rent Tribunal.

This rule protects tenants from:

1. Forceful eviction

2. Breaking locks

3. Changing door keys

4. Threats or intimidation

5. Harassment

6. Disconnecting electricity or water

7. Blocking access to property

Additional Tenant Rights:

1. 24-hour notice required before landlord enters the property

2. No surprise inspections

3. Police verification must be completed by both parties

4. Receipt for every rent payment mandatory

Any violation can lead to penalty or criminal action.

e) Repair and Maintenance Rules: Clear Responsibilities

The New Rent Rules clarify:

Landlord Must Handle:

1. Structural repairs

2. Plumbing and drainage

3. Electrical wiring

4. Painting (every 3 years)

5. Water seepage issues

6. Roof damages

7. Common area maintenance

Tenant Must Handle:

1. Minor repairs

2. Daily maintenance

3. Wear-and-tear replacements

4. Keeping the property clean

5. Damage caused by personal misuse

Key Time Limit

If the landlord fails to make essential repairs within 30 days, then:

Tenant can get the repair done and deduct the amount from next month’s rent, provided bills and proof are submitted.

f) Rules for Property Entry & Inspection

To protect tenant privacy:

1. Landlord must give 24-hour prior written notice

2. Visits allowed only between 7 AM and 8 PM

3. No late-night entries

4. No frequent inspections to harass tenants

g) Establishment of Rent Tribunals

The 2025 framework makes dispute resolution FASTER.

Rent Authority: Registers agreements and handles initial complaints

Rent Court: Handles rent, deposit, and maintenance disputes

Rent Tribunal: Final appellate authority

Dispute Resolution Timelines

1. Minor issues (like deposit return): 60 days

2. Standard disputes: 90 days

3. Eviction cases: Maximum 120 days

This makes the rental justice system fast and tenant-friendly.

Also Read: Lease Deed Registration: Everything You Should Know

How Do These Rules Protect Tenants?

The New Rent Rules 2025 provide multiple layers of protection:

1. Protection from Unlawful Eviction

Landlord must approach the Rent Tribunal and get an official eviction order.

2. Protection from Harassment

Any threats, forceful eviction attempts, or tampering with services = Punishable.

3. Protection from Huge Deposits

Deposit capped at 2 months (residential).

4. Protection from Surprise Rent Hikes

Tenant must be given 90 days’ notice.

5. Protection of Privacy

Landlord entry allowed only after 24-hour notice.

6. Verified Tenancy

Police verification protects tenants from false allegations and protects landlords from potential misuse of property.

7. Protection of Rights to Essential Services

Electricity, water, internet, and other services cannot be cut off by the landlord.

Also Read: Gruha Jyothi Scheme, 2024: How to Avail Free Electricity for Your Home

How Do These Rules Benefit Landlords?

Landlords are also given strong legal safeguards under the 2025 rules.

1. Protection From Illegal Occupants

If a tenant overstays after lease expiry, landlord can approach tribunal and get fast eviction order.

2. Digital Record of Tenant

Police verification + online registration create official records.

3. Protects Against Rent Default

If tenant does not pay rent for two consecutive months, eviction can be initiated.

4. Damage to Property Recoverable

Tenants must pay for damages beyond normal wear and tear.

5. Speedy Dispute Resolution

No more waiting years for eviction cases.

Also Read: When Can a Landlord Legally Evict a Tenant in India? A Complete Guide

What Happens If You Do NOT Register Your Rent Agreement?

If a rent agreement is not digitally registered:

1. The agreement may become invalid for legal purposes

2. Rent disputes cannot be filed without a registered agreement

3. Penalty of ₹5,000 or more depending on the state

4. Tenancy status becomes “unofficial”, which weakens legal protection

5. Refund disputes (deposit return) become complicated

6. Police verification cannot be completed

States may increase the penalty to ₹10,000 – ₹25,000 or more in high-demand cities.

Also Read: Perpetual Lease Explained: Everything Property Buyers Must Know

Rules on Security Deposit Return

When a tenant vacates:

1. Landlord must return the deposit within 30 days

2. Deductions allowed ONLY for:

   1. Damages to property

   2. Unpaid rent

   3. Outstanding electricity/water bills

Landlord cannot deduct deposit for:

1. Painting

2. Deep cleaning

3. Fixing normal wear and tear

4. New fittings

All deductions must be clearly justified.

Police Verification Rules

Both landlord and tenant must complete police verification through:

1. State police website

2. Mobile app

3. Local police station (if offline)

Failure to verify tenancy may result in:

1. Penalties

2. Delayed dispute resolution

3. Refusal of protection in case of conflict

Responsibilities of Tenants Under New Rules

Tenants must:

1. Pay rent on time

2. Not sublet without written permission

3. Maintain the property

4. Inform landlord about repairs

5. Not use property for illegal activities

6. Follow society or building rules

Responsibilities of Landlords Under New Rules

Landlords must:

1. Provide a safe, habitable home

2. Ensure uninterrupted essential services

3. Register agreement within 60 days

4. Issue rent receipts

5. Complete structural repairs

6. Respect tenant privacy

When Can a Landlord Legally Evict a Tenant?

Under 2025 rules, eviction is allowed only when:

1. Non-payment of rent for 2 months

2. Tenant damages property

3. Tenant engages in illegal activity

4. Tenant sublets without permission

5. Landlord needs property for personal use

6. Tenant stays after agreement expires

7. Tenant violates agreement terms

But even in these cases:

Landlord must obtain a Rent Tribunal eviction order.

Digital Rental Ecosystem: What States Must Do

The Centre has asked states to upgrade systems to enable:

1. Aadhaar-based e-KYC

2. Online rent agreement creation

3. Digital stamp duty

4. Online police verification

5. Integrated landlord-tenant portals

6. Online filing of disputes

7. Virtual hearings for rent cases

This is expected to modernize India’s rental housing system over the next 2 years.

Impact on the Rental Market in India

The New Rent Rules 2025 will:

1. Increase supply of rental homes

2. Boost trust between landlords and tenants

3. Formalize the rental economy

4. Reduce black-money transactions

5. Encourage NRIs to safely rent property

6. Improve affordability for students and migrants

7. Create uniformity across states

With nearly 1.1 crore vacant homes in India (as per Census data), digital renting can transform the market.

Conclusion

The New Rent Rules 2025 are a major step toward modernizing India’s rental market. With digital registration, transparent deposit rules, regulated rent hikes, and strict protections for both landlords and tenants, these rules bring clarity and fairness to renting homes and commercial spaces.

As states adopt these guidelines, renting in India will become:

• More secure

• More affordable

• More transparent

• More digitally driven

Whether you are a tenant planning to move or a landlord renting out your property, understanding these rules will help you stay compliant, protected, and stress-free.