New Rent Rules Kicked In: What Is It? Who Needs To Do It, Landlord Or Tenant? Check Penalty And Deadline

As more Indians move into rental homes and commercial spaces, the government has introduced the New Rent Agreement 2025 to simplify the rental process, standardise agreements, and ensure faster resolution of disputes. Building on the Model Tenancy Act (MTA) and recent Union Budget provisions, the Home Rent Rules 2025 aim to create a structured and predictable rental framework.

Under the new Act, all rent agreements must be registered within two months of signing, either online through state property registration portals or at the local registrar’s office. Failure to register can result in a Rs 5,000 penalty.

Key Changes For Tenants

• Mandatory Registration: Agreements must be formally registered within two months to avoid penalties.

• Capped Security

  Deposits: Deposits are limited to two months’ rent for residential properties and six months for commercial spaces.

• Predictable Rent Hikes: Any increase in rent must follow prescribed rules and require advance notice.

• Fair Evictions: Eviction procedures are clearly defined, ensuring tenants cannot be asked to leave abruptly.

• Faster Dispute Resolution: Special Rent Courts and Tribunals have been established to resolve disputes within 60 days.

This was detailed in a viral video on Instagram.

View this post on Instagram

A post shared by Binge Wealth (@bingewealth)

A user commented, “Bengaluru landlords are going to cry now.”

Another wrote, “Showed this to my landlord. My landlord says this is AI.”

“Outside every government office there’s a board. Giving and taking bribes is a criminal offence,” read a comment.

Someone shared, “FYI. It’s not applicable for agreements under 11 months.”

Benefits For Landlords

• Higher TDS Exemption: The TDS threshold for rental income has increased from Rs 2.4 lakh to Rs 6 lakh per year, improving cash flow.

• Simplified Tax Reporting: Rental income now falls under ‘income from housing property’.

• Quick Action On Non-Payment: Cases involving three or more missed rent payments can be escalated to Rent Tribunals for faster resolution.

• Incentives For Property Upgrades: Landlords who maintain affordable rents or add energy-efficient improvements may be eligible for tax benefits under state schemes.

How To Register Your Rent Agreement

1. Visit your state property registration portal.

2. Upload ID proofs of both parties.

3. Fill in rent details.

4. E-sign and submit the agreement.