From 2025, the rental system in India is becoming more structured and transparent. The government aims to replace informal verbal rent deals with online, written and legally secure agreements. These updates help both landlords and tenants stay protected and avoid future disputes.
Below are the major changes explained in simple words:
Rent Agreement Update in 2025
Digital Stamp & Registration Becomes Mandatory
All rent agreements of 12 months or more must be:
registered online, and
digitally stamped
within 60 days of signing.
This rule will reduce fake documents and protect both parties with a proper legal contract.
If the agreement is not registered within the required time, a penalty of up to ₹5,000 may be charged.
This rule will help prevent fake tenancy documents and ensure both landlord and tenant are legally protected.
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Security Deposit Limits
The government has fixed maximum security deposit limits:
Residential rent: Up to 2 months’ rent
Commercial rent: Up to 6 months’ rent
This change prevents landlords from asking for very high deposits, making renting more affordable, especially for tenants.
Notice Before Rent Increase
Landlords can only increase rent after completing 12 months of tenancy, and they must give the tenant a 90-day written notice before raising the rent.
This protects tenants from sudden or unfair rent hikes and gives them enough time to plan.
Eviction Through Tribunal Only
Landlords cannot remove tenants forcefully.
To evict someone, they must:
apply to the Rent Tribunal, and
get an official eviction order.
Actions like changing locks, cutting electricity or water to push tenants out will be illegal.
Maintenance Responsibilities Clearly Defined
The government has separated maintenance duties:
Tenants will handle regular and minor repairs
Landlords will handle major structural and building repairs
This avoids confusion and conflicts over repair expenses.
Landlord Entry
A landlord must provide at least 24 hours’ written notice before entering the rented property.
This ensures freedom and privacy for tenants.
Police Verification
Now, every tenant has to complete a police verification form before moving into a rented house. This helps keep official records and makes the living environment safer for everyone.
Why These Changes Matter?
These updates are designed to create a fair and safer rental system by:
promoting written and registered agreements
preventing high deposits
avoiding misuse of power by landlords
reducing disputes
speeding up resolution through tribunals
Overall, India’s rental framework is shifting towards more transparency, fairness and legal protection for everyone involved.
Mandatory Points That Rent Agreement Must Include
From 2025 onwards, a rent agreement must clearly mention a few important details. These points help avoid confusion and protect both the tenant and the landlord. Here’s what needs to be written in the agreement in very simple terms:
1️⃣ Monthly Rent Amount
The agreement must show exactly how much rent the tenant will pay every month.
2️⃣ Security Deposit
It must mention how much deposit has been paid by the tenant and under what conditions the landlord will return it.
3️⃣ Rent Increase Rules
The agreement should explain when and how the rent will increase—like every year or after a specific period.
4️⃣ Duration of Stay
It must clearly state how long the tenant is allowed to live in the property (for example, 11 months or 1 year).
5️⃣ Notice Period
It should mention how many days or months of notice must be given before leaving the house or asking the tenant to vacate.
6️⃣ Repair and Maintenance Responsibility
The agreement should explain:
who will fix what,
what repairs the landlord will handle, and
what the tenant must take care of.
7️⃣ Deposit Refund Process
It must show the process of returning the deposit at the end of the agreement, including any deductions in case of damage.
8️⃣ Eviction Rules
The document should explain the conditions under which the landlord can ask the tenant to leave the house legally.
9️⃣ Late Payment Terms
If the rent is delayed, the agreement should clearly say whether there will be any penalty or charge for late payment.
🔟 Utility Bill Sharing
The agreement must mention how electricity, water, and maintenance charges will be paid—fully by tenant or shared.
Compliance and Penalties Under New Rent Agreement Rules (2025)
The updated rent agreement framework introduces stronger compliance requirements for both landlords and tenants. These reforms aim to create transparency, boost security, and ensure tax accountability across rental transactions in India. Here’s a simplified breakdown:
1️⃣ Penalty for Non-Registration
A rent agreement must be officially registered under the new framework.
If a landlord or tenant fails to register their agreement, they may have to pay a penalty of up to ₹5,000.
However, this amount can differ depending on the state government rules and local authority charges.
2️⃣ Mandatory Police Verification
Police verification has now been made compulsory for tenants before moving in.
This step helps maintain official records and significantly improves safety and accountability for rental properties.
3️⃣ Digital Rent Payments Required
Any rent payment above ₹5,000 must be paid through digital modes such as:
UPI
bank transfer
online wallets
This requirement ensures that every transaction remains traceable and legally documented.
4️⃣ TDS Deduction for High-Value Rentals
If the monthly rent amount is more than ₹50,000, tenants are required to deduct TDS under Section 194-IB and deposit it to the government.
This rule mainly applies to luxury or high-value rental properties.
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Frequently Asked Questions
To make a valid rent agreement in 2025, you usually need:
Aadhaar / ID proof of both parties
Property papers or address proof of the house
Two passport-size photos
Rent terms written clearly
Digital stamp paper & registration details
These basic papers make the agreement official and safe.
Yes, registration is compulsory for all cities and towns.
If you don’t register the agreement:
It may not be accepted in court
You may have to pay a penalty
Police verification cannot be completed
You won’t have legal protection as a tenant or landlord
So, an unregistered agreement has almost no legal value.
Old rent agreements remain valid until their expiry date.
But when they end, they must be renewed according to 2025 rules to stay fully legal and safe.
Yes. Digital stamping is legally valid and safe.
It is directly recorded in the government database and reduces the risk of fraud, fake stamp papers or tampering.
Yes. These rules apply to most rented living spaces.
However, commercial hostels and PGs may have their own additional policies.
Notarized agreements are helpful as proof, but they are not enough.
A registered agreement is required to be fully legal and enforceable now.
Online registration usually takes a few hours to a few days, depending on the state system and document accuracy.
It depends on the agreement.
Both parties can share the cost, or one person can pay if they both agree.
Yes, it can be made for 1 year, 3 years, or even 5 years.
The 11-month format was only followed earlier to avoid paperwork.
Before signing, tenants should check:
Monthly rent
Deposit amount
Notice period
Maintenance terms
Rent hike rules
Police verification status
This avoids future disputes.
Late fees depend on what the agreement says.
Usually, a small daily or monthly penalty can be added if rent is delayed.
No.
Residential and commercial agreements have different rules:
Deposit limits differ
Rent terms differ
Usage purpose differs
Basic day-to-day repairs are usually the tenant’s responsibility.
Major structural repairs must be handled by the landlord.
This rule is written clearly in the agreement to avoid confusion.
