New Home Rent Rules 2025: A Complete Guide for Landlords & Tenants

The Indian government has revealed updated guidelines to make the renting process safer, smoother, and more transparent for tenants as well as home owners – Home Rent Rules 2025. This is a ground-breaking framework executed to overhaul the rental housing sector by launching full digital compliance and solid protections. These rental housing rules intend to streamline rental agreements, reduce illegal disputes, and build trust across the rapidly expanding urban housing market.

In this article, we cover key highlights of the home rent rules 2025, their impact on tenants, landlords, major cities, and potential factors to watch out for.

New Regulations for Rental Agreements

All rental agreements must be written and registered; informal or oral agreements are no longer valid.

• Require all rental agreements in writing.

• Require registration (within two months of signing the rental agreement).

• Digital registration is encouraged for improved accuracy and transparency.

• Agreements that aren't registered and/or signed may incur penalty fees, and/or can be argued to not hold any legal validity.

Standardized Limits for Security Deposits

One of the greatest benefits for tenants:

• Residential Security Deposits: Maximum is two months' rent; and

• Commercial Security Deposits: Maximum is six months' rent.

By standardizing the limits for security deposits, tenants in major cities (Bengaluru, Mumbai, and Delhi) will no longer have to deal with landlords asking for an unreasonable amount for security deposits.

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No Surprise Rental Rate Increases

• Rental Increase Procedures should be pre-established through written notice before being implemented, with a maximum of thirty days’ notice given prior to the new rental rate taking effect.
• All rental rate increases annually are to be conducted in the manner outlined in the rental agreement, but are not to be more than five to ten percent annually.
• Rental rate increases cannot occur during a reasonable period unless both parties to the rental agreement have agreed upon the increase prior to.

Legal Process Must Be Followed For Evictions

In addition, the new tenant eviction laws offer strong protections against unexpected evictions. The following circumstances must exist for a landlord to initiate an eviction:

a. The tenant breaches the rental agreement;

b. The landlord needs to reclaim the rental property for personal use;

c. The tenant has not paid their rent for a certain period of time;

d. The landlord must give appropriate legal notice of the eviction before.

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Mandatory Clauses in Agreements

To be valid under a Rent Agreement for the year 2025, the following clauses must be included in all Rent Agreements:

• Amount of Monthly Rent

• Amount of Security Deposit

• Rent Revision Methodology

• Duration of Tenancy

• Notice Period for Termination

• Repair/Maintenance Responsibilities of Landlord/Tenant

• Refund for Security Deposit

• Eviction Process

• Conditions for Late Payment

• Sharing of Utilities (Electricity, Water, and Maintenance)

Online Registration of Digital Stamped Agreements

Your state will make it easier to rent a home by:

• Allowing you to register your rent agreement online.
• Providing you with digital stamped paper instead of traditional stamp paper.
• Keeping your rental agreement records in a secure, tamper-proof, and easily accessible location electronically.

Impact of Home Rent Rules on Tenants and Landlords

Tenants:

• A lower burden than what normally comes with moving.
• Tenants will be protected from arbitrary rent increases & surprise eviction notices.
• Tenants will have more clarity and rights when dealing with maintenance issues, lease extensions/renewals, and deposit refunds.

Landlords/Owners:

• There will be a well-defined legal framework and a binding contract (enforceable).
• There will be complete transparency through the use of electronic documents.
• The use of a standard contract format will allow landlords/owners to save time.
• There will be a reduced likelihood of fraudulent contracts being executed.

Pre-Rental Checklist (2025 Compliance)

• You should insist on having a written lease that uses the standard lease format required by law.
• You'll need to digitally stamp and register your lease within 2 months of the date you signed it.
• The amount of your security deposit must not exceed the legal limit. You will need to confirm the key components of the lease, including: rent, notice, maintenance, revisions, and deposits.
• You should maintain copies of both the registered lease and the receipts associated with the lease.
• Tenants are discouraged from entering into a verbal lease agreement, as it will not be recognized or enforced under the 2025 rules for leases.

What to Keep in Mind

• Implementation of the 2025 Rules may vary by state.
• Some landlords may not comply with the 2025 rules.
• Tenants must have a digitally registered lease, or there is no lease; therefore, renewing the lease may require registering and stamping a new lease.
• All disputes will be resolved by the rent authority, as per the operational guidelines established between landlords and tenants.

Impacts of New Rent Rules 2025 across Major Metropolitan Cities

• Lower upfront costs due to capped security deposits (major relief in high-rent metros like Mumbai, Bengaluru, and Delhi).
• Greater predictability with regulated rent hikes and mandatory advance notice, helping tenants plan finances better.
• Reduced arbitrary evictions, improving housing stability for students, migrant workers, and professionals.
• Higher transparency through mandatory digital rental agreements, limiting informal/undocumented renting practices.
• Fewer landlord-tenant disputes as formal processes and tribunal oversight become standard.
• Improved mobility for renters since lower deposits and clearer rules make shifting cities or houses easier.
• More trust and professionalism in metro rental markets, encouraging wider participation from both landlords and tenants.

Frequently Asked Questions

What happens if a landlord demands that the tenant pay more than 2 months’ deposit?

Tenants can refuse to pay or file a complaint, as it is illegal under the 2025 rules.

What if I am living on rent already under a conventional informal rental agreement?

Make a new compliant agreement, stamp digitally, and register it to ensure legal protection.

Are these 2025 rules applicable across all Indian states?

Yes, the home rent rules 2025 are designed for all states in India. However, the implementation process may differ based on digital infrastructure and local regulations.