Looking for a rented place? Know these rent rules before you move in

Here's what tenants and landlords must file, pay and track to avoid fines, shocks and disputes.

If you’ve ever moved houses, you know the drill- a thick deposit, an agreement someone forgot to register, and the constant worry that a dispute could leave you stuck. Most of these headaches come down to one thing, unclear paperwork and mismatched expectations between tenants and landlords.

 

That’s why understanding how India’s rent framework actually works- who registers what, how deposits are capped, when notices must be given, and what happens if you skip a step- can save you real money and stress. This explainer walks through those moving parts so you know exactly what affects your rent, your rights, and your budget.

Rent rules: Model Tenancy Act

 

The Ministry of Housing and Urban Affairs (MoHUA) approved the Model Tenancy Act (MTA) in June 2021 to standardise rental pacts across states. Till now, 14 states, including Uttar Pradesh and Tamil Nadu, have adopted it, with others urged to follow suit. It caps security deposits (just two months' rent for homes, six for shops), no sudden evictions without cause, and quicker fixes for rows.

 

From July 1, digital e-stamping became mandatory for all agreements, tying into the budget's hike in TDS exemption on rent income to Rs 6 lakh a year (up from Rs 2.4 lakh). This eases the load on small landlords, potentially lowering rents as properties become easier to let.  ALSO READ | From lock-ins to rent hikes: Rental clauses that can trip up tenants

Who handles registration? Landlord, tenant, or both?

It's a team effort. Both sides must jointly notify the state Rent Authority, online via portals like UP's IGRS or offline at offices, within two months of signing the deal. It generates a unique ID, making the agreement public and enforceable. Skip it, and you're out of luck in court. Tenants get proof of tenancy, landlords shield against bogus claims.

 

Pro tip: Use MoHUA's free 11-point template to avoid pitfalls.

Deadlines and penalties: Don't get caught out

Register by month two, or face a Rs 5,000 fine per the new e-stamp rules. This penalty, rolled out nationwide from July 2025, targets dodgy deals that fuel 70 per cent of rental disputes, according to MoHUA data. No registration? You can't chase dues or fight evictions legally. For disputes, new rent courts promise wrap-ups in 60 days.  ALSO READ | Renting your home to foreigners: Follow these rules to avoid legal trouble

How does this affect your pocket?

 

For tenants: Expect upfront savings, goodbye to three-to-six month deposits that tie up cash. Rent hikes? They need 15 days' notice and mutual nod, curbing shocks.

 

Landlords: The TDS bump means less paperwork if earnings stay under Rs 6 lakh, freeing funds for maintenance or new buys.

 

·  Tenant tip: Budget Rs 500- Rs 1,000 for e-stamp fees; hunt state portals for subsidies.

 

·  Owner tip: Formalise to attract reliable payers and claim tax breaks on repairs.

 

In short, these rules nudge India towards a rental market that's transparent and tenant-friendly, potentially unlocking Rs 1.5 trillion in formal housing stock by 2030, according to the budget estimates. Check your state's housing site for local tweaks.