The Central Government has enforced the New Rent Rules 2025 to streamline and secure the rental housing process across India.
These reforms focus on digitising rent agreements, capping security deposits, regulating rent hikes and offering protection to tenants while improving transparency between landlords and tenants.
Under the new framework, all rent agreements must be digitally stamped and registered online within 60 days of signing. Agreements not registered may incur a penalty starting from ₹5,000, depending on the state. The introduction of this rule resolves the long-standing issue of unregistered handwritten contracts that can lead to legal ambiguity and tenant exploitation.
For residential properties, landlords cannot collect more than 2 months’ rent as a deposit. In the case of commercial spaces, the limit is fixed at 6 months’ rent. This cap helps lower financial entry barriers for urban tenants who often struggle with steep upfront deposit demands in cities like Mumbai and Bengaluru.
Landlords can raise the rent only after a 12-month duration of the existing agreement. They must also provide written notice at least 90 days in advance before making any increase. This ensures tenants have ample time to make decisions and helps prevent sudden or arbitrary rent escalations.
Eviction rights are now tied to formal processes. A landlord cannot evict a tenant without obtaining an eviction order from the Rent Tribunal, safeguarding legally abiding tenants from forceful or unjust removals.
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The rules empower tenants by mandating that landlords must give 24 hours’ written notice before visiting for repairs or inspection, thus upholding tenant privacy. In cases of urgent repairs, if landlords fail to act within 30 days of notification, tenants may undertake repairs themselves and deduct the expense from their rent upon providing valid proof.
Police verification of tenants is also now mandatory to help maintain detailed rental records and prevent property misuse. Coercive eviction tactics or cutting essential utilities like electricity or water are now legally punishable.
The New Rent Rules 2025 mark a significant policy shift aimed at protecting tenants and streamlining landlord–tenant relationships. Through digital registration, capped deposits, and formal dispute avenues, the rental ecosystem is expected to become more transparent and fair.
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Published on: Dec 2, 2025, 1:02 PM IST
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