Home Rent New Rules: Government Introduces Major Reforms for Tenants — Know What’s New
National Desk: The Central Government has implemented the Home Rent Rules 2025, which aim to make India’s rental housing market more transparent, secure, and organised. Renting a home will now be easier, with strict checks against arbitrary rent hikes, excessive security deposits, and weak documentation practices.
Under the new rules, both landlords and tenants must register the rent agreement online. Limits will be imposed on security deposits, and clear guidelines will define when and how much rent can be increased. All details related to vacating the house, repairs, inspections, and tenant safety must be included in the agreement. A fixed timeline has also been set for resolving rental disputes. These reforms will particularly benefit millions of tenants in Bengaluru, Mumbai, Hyderabad, and Pune.
Protection for Landlords as Well
The reforms are designed not only for tenant protection but also to provide landlords with legal safeguards and assurance. Digital stamping of rental agreements is mandatory, and the agreement must be registered online within 60 days of signing. Failure to do so may attract a minimum penalty of ₹5,000.
The government has also instructed states to upgrade their property-registration portals and implement faster digital verification systems. This will help curb fraud, illegal evictions, and backdated fake rental agreements.
Major Changes That Bring Relief
1. Cap on Security Deposit
Currently, in many metro cities, landlords demand up to 10 months’ rent as a security deposit. Under the new rules, security deposits for residential properties cannot exceed two months’ rent.
2. Rent Can Be Increased Only Once a Year
Landlords can now raise the rent only once a year, and a 90-day advance notice is required.
3. Digital Payment Mandatory
- For rent above ₹5,000, digital payment is compulsory to maintain transparent records.
- For rent above ₹50,000, TDS under Section 194-IB becomes mandatory, bringing premium leases under the tax framework.
