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If you are renting a home in India—or renting one out—you likely feel like you are walking through a minefield. For decades, the Indian rental market was governed by archaic laws from 1948 that made landlords terrified of losing their property and tenants terrified of arbitrary evictions.

Enter the Model Tenancy Act (MTA).

Often referred to in the media as the "New Rent Law 2025," this framework is the government’s attempt to fix the trust deficit. While housing is a state subject (meaning your specific rules depend on whether you are in Bengaluru, Mumbai, or Delhi), the push for mandatory digital registration and standardized rights is sweeping across the country.

Here is the definitive guide to where you stand in 2025.

The Golden Rule of 2025: "If It’s Not Registered, It Doesn’t Count"

The days of buying a green stamp paper from a notary and calling it a lease are over.

Under the new framework, the most critical change is the Digital Rent Agreement. Whether you are in a state that has fully adopted the MTA (like Assam or Andhra Pradesh) or a state upgrading its own systems (like Karnataka and Maharashtra), the mandate is clear: All rent agreements must be written and registered.

• For Tenants: A registered agreement is your only shield against sudden eviction.

• For Landlords: If your agreement isn't registered, many courts will no longer accept it as evidence if you need to recover unpaid rent.

Tenant vs. Landlord: Who Wins on What?

The new laws don't favor one side; they aim to balance the scales. Here is a direct comparison of your rights under the modern framework.

1. Security Deposits

• Old Era: Landlords in Bengaluru and Mumbai often demanded 10 months’ rent as a deposit.

• New Rule (MTA): The law caps security deposits at:

  • Residential: Maximum of 2 months' rent.

  • Commercial: Maximum of 6 months' rent.

• Who Wins? Tenants. This massively reduces the upfront cost of moving.

• Note: If you are in Mumbai, the Maharashtra Rent Control Act still influences this, but the market is shifting toward the MTA standard.

2. Rent Increases

• Old Era: "I'm raising the rent by 15% next month. Pay or leave."

• New Rule (MTA):

  • Rent increases must be agreed upon in the written agreement.

  • If not specified, the landlord must give 3 months' written notice before hiking the rent.

  • You cannot raise the rent in the middle of a fixed tenure.

• Who Wins? Both. It provides predictability for tenants and a legal mechanism for fair market correction for landlords.

3. Eviction Rules

• Old Era: Landlords often used "muscle power" or cut off electricity to force tenants out. Tenants often refused to leave for years, hiding behind civil court delays.

• New Rule (MTA):

  • Landlords cannot cut off essential supplies (water/electricity) even if rent is unpaid.

  • Tenants can be evicted swiftly for specific reasons: non-payment for 2 months, subletting without consent, or structural damage.

  • The Kicker: If a tenant refuses to vacate after the lease ends, they are liable to pay 2x rent for the first two months and 4x rent thereafter.

• Who Wins? Landlords. The heavy penalty for overstaying finally solves the "squatter" fear.

4. Maintenance and Repairs

The new laws finally answer the age-old question: "Who pays for the broken geyser?"

• Landlord’s Job: Structural repairs, whitewashing, plumbing, and electrical wiring.

• Tenant’s Job: Routine maintenance (drain cleaning, switch repairs, tap washers) and fixing damage caused by their negligence.

Dispute Resolution: No More Civil Courts

This is the game-changer. Previously, tenancy disputes were dragged into civil courts, taking 10 to 20 years to resolve.

The new law removes the jurisdiction of civil courts. Instead, it sets up a three-tier system:

1. Rent Authority: For registering agreements and fixing initial rent.

2. Rent Court: For hearing disputes (eviction, non-payment).

3. Rent Tribunal: For appeals.

The Timeline: These courts are mandated to resolve disputes within 60 days.

Comparison Table: At a Glance

What Should You Do Now?

If You Are a Tenant:

Check your state's status. If you are in Karnataka ("New Rent Rules" discussions are active), negotiate for the 2-month deposit citing the central guidelines. Ensure your agreement is registered, not just notarized, to ensure the 24-hour notice rule applies to you.

If You Are a Landlord:

Stop relying on verbal trust. The new laws impose heavy penalties on you if you don't register the agreement. If you want the power to evict a defaulting tenant quickly (and claim that 4x penalty rent), you strictly need a registered rent agreement.

Conclusion

The "Wild West" era of Indian renting is ending. The Rent Law 2025 landscape is about digital transparency. It might seem like more paperwork today, but it is the only way to ensure your home—whether you live in it or own it—remains safe.