living on rent made easy
New Rent Agreement 2025: The number of people leaving their homes and living on rent in other cities in search of livelihood is continuously increasing. Be it studies or job, a large section of people are dependent on rented houses. With this increasing number, disputes between landlord and tenant have also become common. Sometimes a complaint of not getting the deposit back, sometimes an order to vacate the house without informing. These stories have become the story of every city. But now these arbitrariness is going to be curbed. The government has implemented new rules under the ‘New Rent Agreement 2025’, which are based on the Model Tenancy Act (MTA) and recent budget provisions.
1. Penalty for delay in rent agreement registration
Till now many people used to get the rent agreement made, but were careless in registering it. The new rules have completely eliminated this laxity. Now its registration has been made mandatory within two months of signing the agreement. The government’s objective is to ensure that there is a legal record of every tenancy. You can easily get this registration done on the state’s online property website or by visiting the nearest registrar office. But keep in mind, if the agreement is not registered within the stipulated time limit, a fine of up to Rs 5,000 can be imposed. This rule makes both the landlord and the tenant accountable, so that any legal complications can be avoided in the future.
2. Big relief to the tenant
The biggest headache for people living on rent was the security deposit and the pressure to suddenly vacate the house. The new rules have provided a big ‘security blanket’ here.
- Security Deposit Limit: Now, for residential properties, landlords can take advance or security deposit only equal to a maximum of two months’ rent. Whereas for commercial property this limit has been kept for six months. This will reduce the burden on tenants to deposit huge amount in lump sum.
- Eviction rules: Now no landlord can evict a tenant from the house without giving proper notice or following the procedure.
- Rent Increase: Landlords will no longer be able to increase the rent whenever they wish. It will be mandatory to give prior notice for increase in fare and this will be as per the terms of the agreement.
3. The landlords’ squabbles
It is not that these rules are only in favor of tenants; The interests of the landlords have also been taken full care of. The government has added many attractive provisions to promote the rental housing sector.
- Big relief in TDS: The best news for landlords is on the tax front. The TDS deduction limit, which was earlier Rs 2.4 lakh per annum, has now been increased to Rs 6 lakh per annum. This simply means that now TDS will not be deducted even on higher income, which will bring more money into the hands of landlords.
- ‘Fast-track’ settlement of disputes: It has often been seen that tenancy disputes drag on for years in the courts. To solve this, special ‘Rent Courts’ and Tribunals have now been created. The aim here has been to resolve any dispute within 60 days.
- Protection against non-payment of rent: If a tenant does not pay rent for three months or more, the landlord will get quick justice through the Rent Tribunal and the eviction process will be easy.