BUSINESS

Renting in 2025? Key Changes in the New Rent Rules You Must Know

Renting a home in India is set for a major transformation in 2025, with the government introducing the New Rent Rules 2025. Designed to make renting more transparent, reduce disputes, and protect both tenants and landlords, the rules bring several important changes for residential and commercial properties.

Mandatory Digital Registration of Rent Agreements

A key feature of the new rules is the requirement that all rental agreements must be digitally stamped and registered online within 60 days of signing. Previously, many agreements were handwritten or physically stamped without formal registration, leading to disputes and illegal evictions.

Failure to register within the deadline can result in penalties starting at Rs 5,000, with state-specific adjustments. The move aims to prevent fake agreements, strengthen legal enforcement, and make the rental process more secure.

Lower Security Deposits for Tenants

Tenants now benefit from capped security deposits:

Residential properties: Maximum of 2 months’ rent
Commercial properties: Maximum of 6 months’ rent

In cities like Bengaluru, Mumbai, and Pune, deposits previously ran into several lakhs, placing a heavy financial burden on tenants. The new cap makes renting more affordable, particularly for working professionals and students.

Structured Rent Increases and Notice Periods

The rules also formalize rent hikes and notices:

Rent can be increased only after 12 months
Written notice of at least 90 days must be given before any increase

This prevents sudden rent spikes, giving tenants time to plan their budgets or decide whether to continue renting.

Clear Eviction and Privacy Guidelines

Landlords cannot evict tenants without following legal procedures. An eviction order from the Rent Tribunal is required before asking tenants to vacate. Actions such as changing locks, cutting utilities, or issuing threats are now punishable.

Tenants also have rights to privacy: landlords must give at least 24 hours’ notice before entering the property for inspections or repairs. For essential repairs, if the landlord fails to act within 30 days, tenants may arrange repairs themselves and deduct the cost from the rent, provided bills or proof of payment are submitted.

Additional Safety Measures

The rules also mandate police verification of tenants, creating an official record and promoting safer rental practices.

What This Means for Tenants and Landlords

With clearer regulations on online registration, deposits, rent revisions, repairs, and eviction, renting in 2025 is expected to become more organized, predictable, and secure. For millions of Indians who frequently relocate for work or education, these rules offer welcome stability and transparency in the rental market.