Many people in India do not have their own homes and have to live in rented houses. Similarly, many people live in other cities for work or other reasons and they also have to rent a place to live. However, those living on rent often face many problems.
The most common problem is that landlords arbitrarily fix the security deposit and rent. Some people ask for a security deposit equal to 5-6 months’ rent, while others increase the rent without any notice. But this will not happen now. Landlords will no longer be able to demand security deposits arbitrarily. The government has made provisions for this.
No more arbitrary security deposits
Currently, many landlords in the country charge exorbitant amounts as security deposits. To stop this, the government is emphasizing on implementing the Model Tenancy Act across the country. The new rent rules of 2025 clearly state that there will now be a limit on the security deposit. The rent will not be increased arbitrarily, and no one can be evicted from the house without just cause. This change will provide a lot of relief to the tenants.
Under the new rules, a maximum of two months’ rent can be taken as security deposit for a residential property. For commercial places like shops and offices, this limit has been fixed at six months. This will reduce the pressure on tenants to deposit a large amount at once and it will become easier to rent a house. Often, people would avoid taking a home on rent due to the demand for a high security deposit.
No rent without written agreement
After the Model Tenancy Act, a written rent agreement is now mandatory. The rent, increase in rent, responsibility for repairs, notice period and rent period will be clearly mentioned in it. It will have to be submitted to the rent authority within 60 days of making the agreement.
Along with this, states will also have to create an online platform where fare agreements will be registered digitally. This record will be legally valid and will act as the main evidence in any dispute. This will bring transparency for both the tenant and the landlord, ensuring that neither party can unilaterally change the terms later.
