The landlord and tenant relationship is governed by Home rent rules in India. In 2025, these new laws based on the Model Tenancy Act 2021 also promote fair business. They involve coverage of a rent agreement, deposits, and evictions, safeguarding the rights of both parties.
Why Were Updates Needed?
Street fights and regulation that was no longer up-to-date contributed to the 2025 alterations. The government will also seek to minimize disagreements, standardize agreements and encourage transparency. These revisions focus on such areas as non-justified rent increase and forced evictions.
Key Changes in 2025
The rules in 2025 bring major changes with regard to clarity and fairness. They require written contracts, limit security deposits and expedite the eviction process. Such developments have resulted in an equilibrium of the rental market between tenants and landlords.
Security Deposit Regulations
The maximum amount of security deposit on residential premises is two months rent. As an illustration, in the case rent is 20,000, the deposit cannot be more than 40,000. This makes it cheaper to get the tenants to begin a lease.
Rent Increase Guidelines
The landlords are available to raise rent by 5-10% every year, with a three-month notice, on the basis of the state regulations. This should be standards so that market rates are met, which is between 8 and 10 percent of value of the property, and it can be adjusted in order to eliminate spikes.
Eviction Process Simplified
Evictions are based on legal reasons, such as two months non-payment with form notice. There are also more safeguards against unjustified eviction to tenants and they thus enjoy due process of justice.
Digital Agreement Mandate
Since July 1, 2025, contracts of rental shall be considered legally binding only with the use of digital stamps. Failure to comply would result in a 5,000 Fines which are primarily slapped on landlords. Such positive influences on transparency are promoted by digital platforms such as Kaveri Online Services.
Dispute Resolution Improvements
Disputes are solved within 60 days in special rent courts established in 2025. Any problem, such as a dispute over a deposit or evictions, is effectively dealt with Portals on the Internet provide the ease of fast filing of complains by both sides.
Key Home Rent Rules 2025
| Aspect | Details |
|---|---|
| Security Deposit | Capped at two months’ rent for residential properties |
| Rent Increase | 5-10% annually, with three-month notice, aligned with market rates |
| Eviction | Requires legal grounds, two-month non-payment notice, and due process |
| Digital Agreements | Mandatory digital stamps from July 1, 2025; ₹5,000 fine for non-compliance |
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