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🏠 New Rental Rules 2025 β€” What Tenants & Landlords Should Know

πŸ“„ Digital + Registered Agreements Only β€” From now on, all rent agreements must be registered online or with digital stamping, and filed within 60 days of signing. No more informal or paper-only contracts.

πŸ’Έ Security Deposit Cap β€” For residential properties, security deposit is limited to 2 months’ rent; for commercial premises, up to 6 months.

πŸ“ˆ Rent Hike Rules β€” Rent can be raised only after 12 months, and landlord must give at least 90 days’ written notice before hike.

πŸ› οΈ Repair & Maintenance Obligations β€” If a tenant reports major repair/maintenance issues, landlord must address them β€” giving clarity on landlord’s maintenance liability under the new regime.

πŸšͺ Landlord Access Needs Notice β€” Landlords can’t just β€œdrop in.” Entry or inspection requires prior written notice (e.g. 24-hour notice) or as per agreement terms.

βš–οΈ Eviction Only Via Legal Order β€” Eviction cannot be arbitrary. It must follow due process via the relevant tribunal/authority under the Act.

πŸ›‘οΈ Faster Dispute Resolution β€” Special Rent Authorities / Tribunals handle disputes (rent default, eviction, deposit disagreements etc.) β€” designed for quicker resolutions compared to protracted civil court suits.

⚠️ Applicability β€” What About Your State (e.g. Gujarat)?

The framework behind these reforms is the Model Tenancy Act 2021 (MTA). Under MTA, rent laws have to be formally adopted by each state before they apply there.

For Gujarat: The state government had earlier announced intention to replace the old rent-control laws with its own tenancy act based on MTA.

However β€” as of now β€” there is no clearly published notification or gazette indicating full adoption of the 2025 rental reforms across Gujarat. Public coverage shows that the new law’s nationwide announcements are based on central model law and proposed β€œNew Rent Law 2025.”

This means that in Gujarat (and some other states), tenancy laws may remain under the older regime until the state formally enacts the updated law. Landlords / tenants should verify local status before assuming full applicability.

βœ… What You Should Do (Given Uncertainty in Some States)

Before signing or renewing a lease: Check with your local Sub-Registrar / municipal or housing authority whether the new 2025-rules (or MTA-based tenancy law) have been notified in your state.

If in a state where adoption is pending (like Gujarat), consider getting the agreement registered and stamped under existing stamp laws, to ensure legal validity.

Clearly incorporate deposit limits, rent hike clauses, notice periods, repair obligations, and entry notice clauses in the agreement β€” even if old law applies β€” to safeguard rights.

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    CA Malav Sheth

    CA Malav C. Sheth is a Fellow Member of the Institute of Chartered Accountants of India. He is also a Commerce and Law Graduate.

🏠 New Rental Rules 2025 β€” What Tenants & Landlords Should Know

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