Home Rent New Rules: The government has taken a big decision for those living on rent, learn about the new rules.
Government Notifies Home Rent Rules 2025: Caps Deposits, Mandates Online Registration, and Ensures Tenant-Landlord Protection: The central government has officially implemented the Home Rent Rules 2025, aimed at bringing greater transparency, security, and efficiency to the country’s urban rental housing market. The new framework is expected to significantly benefit millions of tenants and landlords, especially in metropolitan cities such as Bengaluru, Mumbai, Hyderabad, and Pune, where rental disputes and unregulated practices have been common.
Under the revamped rules, all rent agreements must be registered online, with mandatory digital stamping. Both landlords and tenants are required to complete the online registration within 60 days of signing the agreement. Non-compliance may lead to a penalty of at least ₹5,000. States have been instructed to upgrade their property registration portals and adopt faster, more secure verification systems to curb fraud, illegal evictions, and misuse of backdated lease agreements.
A major relief for tenants comes in the form of a cap on security deposits, which will now be restricted to a maximum of two months’ rent for residential properties—significantly lower than the 6–10 months’ deposit commonly demanded in major cities.
Additionally, rent can now be increased only once a year, and landlords must provide 90 days’ notice before implementing any hike. To ensure financial transparency, the rules make digital payment mandatory for monthly rent above ₹5,000, while rents exceeding ₹50,000 will attract TDS under Section 194-IB, bringing high-value leases under the income tax framework.
The guidelines also cover aspects such as eviction procedures, property repairs, periodic inspections, and tenant safety, along with a defined timeline for dispute resolution—features aimed at reducing long-standing friction between renters and property owners.
While the reforms offer substantial protection to tenants, they also ensure that landlords receive legal clarity and protection, encouraging more homeowners to confidently participate in the rental market. As the system becomes more organized and accountable, the government believes the changes will promote a healthier, more trustworthy rental ecosystem across the country.
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