Home Rent Rules 2025: How India’s New Tenancy Rules Benefit Tenants and Landlords

India’s rental housing system is set for a major shift with the introduction of the Home Rent Rules 2025. The new framework aims to bring clarity, transparency and fairness to a space that has long operated with weak agreements, steep deposits and unpredictable rent hikes. The rules are expected to benefit tenants across big cities like Mumbai, Bengaluru, Hyderabad and Pune, while also giving landlords a smoother path to compliance and dispute resolution.

Key Compliance Requirements Under Home Rent Rules 2025

Mandatory Digital Rent Agreements

• Every tenancy must have a digitally stamped and online-registered rent agreement.
• Registration must be completed within 60 days of signing.
• Non-registration may attract penalties starting at ₹5,000, depending on state rules.
• Informal verbal agreements will no longer hold legal validity.

Capped Security Deposits

• Residential deposits: Maximum of two months’ rent.
• Commercial deposits: Cannot exceed six months’ rent.
• This significantly reduces upfront costs, especially in metros where deposits earlier reached 6–10 months’ rent.

Rules on Rent Revision

• Rent can be revised only after 12 months of the agreement.
• Landlords must issue a 90-day written notice for any increase.
• Mid-term or arbitrary hikes will not be considered valid.

Tenant Rights and Protections

Timely Repairs and Maintenance

• If a tenant reports essential repairs, the landlord must complete them within 30 days.
• If not done, tenants may adjust repair costs from the rent after proper notice.

Entry and Inspection Guidelines

• Landlords must provide 24-hour prior written notice before entering the rented premises.
• Unannounced visits are restricted.

Protection from Forceful Eviction

• Eviction can only be ordered by the Rent Tribunal, not by a landlord’s personal demand.
• Any harassment, threats or forceful disconnection of water or electricity is legally punishable.

Mandatory Police Verification

• Tenants must undergo police verification before taking possession.
• This ensures a formal and trackable tenancy record.

Financial Rules and Digital Payments

Digital Rent Payments

• For rent above ₹5,000 per month, payments must be made digitally.
• This ensures a clear trail of transactions and reduces cash-related disputes.

TDS on High-Value Rentals

• Rentals exceeding ₹50,000 per month require TDS compliance under Section 194-IB.
• This aligns premium property leases with existing income-tax regulations.

Standardised Agreement and Documentation

• The government will release a unified rental agreement template.
• This will replace home-made contracts with unclear clauses.
• The template will cover inspections, maintenance, tenant rights, and eviction norms.

Faster Dispute Resolution

Rent Courts and Tribunals

• Dedicated Rent Courts and Tribunals will handle disputes such as:
  • Deposit refunds
  • Non-payment of rent
  • Eviction requests
  • Property damage
• The aim is to deliver decisions within 60 days of filing, reducing years of court delays.

What the Rules Mean for Tenants

• Lower initial expense due to capped deposits.
• Predictable rent structure with annual revision limits.
• Stronger legal protection backed by documented agreements.
• Faster solutions for disputes and complaints.

What the Rules Mean for Landlords

• Higher compliance responsibilities.
• Fewer prolonged court battles.
• Better enforceability of agreements.
• More discipline and transparency in rental payments and documentation.

📌Good news for tenants in cities like Bengaluru and Mumbai.

The Home Rent Rules 2025 bring long-needed clarity to India’s rental market.

No more random rent hikes, 10-month deposits, or vague agreements.

Here’s how the new rules benefit both tenants and landlords 👇

— TaxBuddy (@TaxBuddy1) November 28, 2025

Why the Home Rent Rules 2025 Matter

The new framework is expected to boost confidence in the rental market, expand housing availability and encourage easier relocation for workers in large cities. By formalising documentation and reducing scope for disputes, the government hopes to build a rental ecosystem where both parties feel protected and informed.

Disclaimer

This article is based on publicly available information about the Home Rent Rules 2025. Readers should consult a qualified lawyer or refer to official government notifications for complete and updated legal guidance. This article is for informational purposes only and should not be treated as legal advice.