New Rent Rules 2025: Tenants and Landlords, ‘Beware’! Rules Changed: Do This Work Immediately.
For people who live in rental homes around the nation, there is some very important news. The ‘New Rent Agreement Rules 2025’ were put into effect by the government to simplify and improve the transparency of the leasing procedure.
All rent agreements must now be registered within two months after signing under new regulations, which are based on the Model Tenancy Act.
A fine of up to ₹5,000 may result from failing to comply. This modification was intended to standardize the procedure and promptly settle disagreements between landlords and tenants.
Agreement Registration Is Now “Mandatory”
The new Act requires that you register the agreement within two months of signing it, regardless of whether you are the landlord or the tenant. This registration can be completed in person at the local registrar’s office or online via the State Property Registration Portal. There are provisions for severe consequences for noncompliance.
For tenants, what has changed?
Limited Security Deposit: It will no longer be possible for landlords to require arbitrary security deposits. The maximum amount that can be collected as an advance is two months’ rent for residential properties and six months’ rent for commercial premises.
Rent Hike Rules: Any rent increase must now be announced in advance and adhere to certain guidelines.
Limitation on Misconduct: Tenants cannot be abruptly ordered to leave the property. For this, explicit eviction processes have been devised.
Dispute Resolution: To settle any disagreement, Special Rent Courts and Tribunals have been established; a ruling will be rendered within 60 days.
What Advantage Do Landlords Get?
Increased TDS Limit: The owners now have more money because the annual TDS (Tax Deducted at Source) limit on rental revenue was raised from ₹2.4 lakh to ₹6 lakh.
Ease of Tax Reporting: Rental income will now be classified as “Income from Residential Property,” making tax reporting easier.
Action on Non-Payment of Rent: The landlord may request quick action from the Tribunal if the tenant has neglected to pay rent three times in a row.
Incentive: Under state programs, owners who maintain reasonable rentals or make home upgrades may be eligible for tax benefits.
How Can I Sign Up?
The registration procedure has been greatly simplified. All you need to do is go to the Property Registration Portal in your state, upload both parties’ ID proofs, and enter the rental information. Next, e-sign the agreement to submit it.
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