New rental laws in India: What you should know
Big changes are coming to how renting works in India.
The government is rolling out a new framework (based on the Model Tenancy Act, 2021) to replace handshake deals with proper written agreements, so everyone knows exactly where they stand.
States will adapt the rules in their own way, but the goal is clear: more transparency and fairness for both sides.
Key highlights of the new law
Security deposits are now capped at two months' rent for homes (and six months for shops), so no more massive upfront payments.
The law lays out who fixes what, when rent can go up, and clear reasons if someone needs to move out—like not paying rent.
There's also a faster way to resolve disputes through special Rent Authorities instead of dragging things through regular courts, though states may need some time to get everything running smoothly.