New Rent Agreement 2025: The number of people leaving their homes in search of livelihood and living on rent in other cities is steadily increasing. Whether for education or employment, a large segment of the population relies on rented housing. With this increasing number, disputes between landlords and tenants have also become common. Sometimes complaints about not getting their deposits back, or sometimes orders to vacate without notice. These incidents have become a common story in every city. But now these arbitrary actions are about to be curbed. The government has implemented new rules under the "New Rent Agreement 2025," which are based on the Model Tenancy Act (MTA) and recent budget provisions.
1. Penalty for Delay in Rent Agreement Registration
Until now, many people would obtain a rent agreement but neglect to register it. The new rules have eliminated this laxity. Now, registration of the agreement has been made mandatory within two months of signing. The government's goal is to ensure that every tenancy has a legal record. You can easily register this agreement on the state's online property website or by visiting the nearest registrar's office. However, keep in mind that if the agreement is not registered within the stipulated timeframe, a fine of up to ₹5,000 can be imposed. This rule holds both landlords and tenants accountable, preventing future legal complications.
2. Major Relief for Tenants
The biggest headache for renters used to be security deposits and the pressure to vacate unexpectedly. The new rules have provided a significant "safeguard" in this regard.
Security Deposit Limit: Landlords can now only accept an advance or security deposit equivalent to two months' rent for residential properties. However, for commercial properties, this limit has been set at six months. This will reduce the burden on tenants from having to pay a large lump sum.
Eviction Rules: Now, no landlord can evict a tenant without giving proper notice or following due process.
Rent Increase: Landlords will no longer be able to increase rents at will. Prior notice will be mandatory for any rent increase, and this will be in accordance with the terms of the agreement.
3. Landlords' Benefits
These rules aren't just for tenants; landlords' interests have also been fully addressed. The government has added several attractive provisions to promote the rental housing sector.
Major TDS Relief: The best news for landlords is on the tax front. The TDS deduction limit, which was previously ₹2.4 lakh annually, has now been increased to ₹6 lakh annually. This means that TDS will no longer be deducted even on higher incomes, resulting in more money for landlords.
Fast-Track Dispute Resolution: It's often seen that tenancy disputes drag on for years in court. To address this issue, special Rent Courts and Tribunals have been established. The goal is to resolve any dispute within 60 days.
Protection for Non-Payment of Rent: If a tenant fails to pay rent for three months or more, the Rent Tribunal will provide landlords with swift justice and simplify the eviction process.
Disclaimer: This content has been sourced and edited from TV9. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.
