Model Tenancy Act India: Rights & New Rent Rules for Tenants and Landlords in 2025

The Model Tenancy Act was enacted in 2021 to create a better rental system for homes and commercial spaces. It explains the rights of tenants and landlords regarding rent, agreements, repairs, and deposits. The act also introduces legal steps for eviction, dispute resolution, and rent updates to avoid misunderstandings. This blog focuses on understanding the Model Tenancy Act in 2025 in India, which encourages written agreements and organised renting. This law is essential because it protects both parties and supports a smoother, more trustworthy renting environment.

Why Was the MTA Conceived?

The Model Tenancy Act in India was conceived to make renting homes fair, transparent, and legally secure. It aims to protect tenants and landlords, reduce disputes, and encourage the use of formal rental agreements nationwide. Below are a few points to understand better:

• Modernizes renting: Supports safe, organised, and trustworthy rental housing.
• Protects tenants: Stops unfair rent hikes and ensures proper maintenance.
• Protects landlords: Provides clear rules for rent collection and eviction.
• Reduces disputes: Legal clarity prevents misunderstandings between parties.
• Encourages agreements: Promotes written and registered tenancy contracts.

Recent News and Updates About the Model Tenancy Act

The Model Tenancy Act was introduced to make renting homes fair, clear, and legal in India. The 2025 India home rent rules build on this, ensuring better protection, transparency, and security for both tenants and landlords. Below are a few of the latest news and updates to keep an eye on:

Digital Agreement Registration:

All rent agreements must be digitally stamped and registered online within 60 days of signing. Failure leads to a ₹5,000+ penalty, preventing informational ‘verbal deals’ and protecting tenants. (2)

Security Deposit Limits:

Security Deposits for residential rentals are now capped at 2 months' rent, and for commercial spaces at 6 months' rent. This reduces the upfront burden for renters and limits arbitrary demands. (3)

Rent Increase & Eviction Rules:

Rent hikes are allowed only once a year with at least a 90-day written notice. The landlord must follow the formal tribunal process for eviction rather than taking sudden action. (4)

New Rental Laws Under the Model Tenancy Act

The Model Tenancy Act (5) introduces clear and modern rules to make renting fair, safe, and transparent for tenants and landlords. It focuses on legal protection, digital systems, and standard procedures to avoid disputes and confusion. Check the points below:

Digital Registration Required:

The rent agreement must be digitally stamped and registered online within a fixed timeframe. Usually, 60 days, ensuring transparency, legal proof, and reducing informal verbal agreements.

Clear Rights & Responsibilities:

Both tenants and landlords receive standardized rules on rent increases, notice periods, repairs, entry permission, and eviction procedures, in line with the new rent agreement law. 

Digital Transaction & Faster Resolution:

Rent payments, receipts, and refunds are to be digital, while disputes are to be handled by Rent Authorities and Tribunals for quicker, simpler resolution.

Maintenance & Repair Rules:

The landlord must handle structural repairs, major issues, and safety concerns, while tenants must manage day-to-day maintenance and minor repairs.

No Forced Evictions:

Eviction can only occur through proper legal notice and procedure. Immediate removal without notice or approved process is not permitted under the act.

Eviction Rules Under MTA

The Model Tenancy Act sets clear eviction guidelines to ensure fairness for both landlords and tenants. It prevents sudden removals and ensures all steps are followed legally and transparently. Check the points below for rules:

• Eviction is only allowed with proper written notice and legal process.
• Failure to pay rent after the permitted grace period can result in eviction.
• Tenants must move out when the agreement expires, and renewal is not approved.
• Property damage, illegal activities, or misuse can justify eviction under new rent agreement rules.

New Provisions for Landlords under New Rental Rules

The updated rental rules give landlords clearer rights, stronger protections, and a structured process for rent payments, maintenance, and evictions.

• Landlords can legally increase rent once a year with proper written notice as per agreed terms, avoiding sudden or unfair changes.
• Property inspections are allowed with proper notice, provided they ensure maintenance and prevent damage, and respect tenants' privacy and the terms of the agreement.
•  Eviction is now simpler through a legal tribunal process when the tenant fails to make payments, misuses the property, or refuses to vacate after the agreement expires.

New Provisions for Tenants under New Rental Rules

 The updated rules provide tenants with stronger protections, fairer rent practices, and greater clarity. They also ensure safety, written agreements, and transparency under the new rent law in India.  

• Rent increases are allowed only once a year with written notice, preventing sudden changes and protecting tenants from unexpected financial pressure.
• Security deposits are capped at two months' rent for residential properties, reducing upfront cost and making renting more affordable.
• Tenant cannot be evicted without proper notice and legal proceedings, ensuring safety, fairness, and protection from forced removal.

Why Rental Compliance Varies Across Indian States?

Rental Compliance differs across states, as each adopts, modifies, or partially follows the Act based on local housing needs, population, market demand, and existing rent laws in India. 

• Some states fully adopt the Act, creating uniform rules for rent agreements, deposits, evictions, and digital registration.
• Some states modify provisions such as rent caps or notice periods to align with regional housing conditions and affordability needs.
• A few states still follow older laws, so implementation is lower due to administrative changes, legal adjustments, and alignment with policy requirements.

States Adoption Status (2025 Update)

Different Indian states are adopting the Model Tenancy Act at their own pace. Some have fully applied it, others are updating their rules, while many are still reviewing the Act. The table below will make things a bit easier to understand:

State/UT	Status	Notes
Assam	Fully Adopted	First state to pass the Act & implement it in 2021 (6)
Karnataka	Partially Adopted	Working toward aligning with MTA, but older rent-control laws still exist in parts. (7)
Tamil Nadu	Fully Adopted	Modern tenancy rules are already in place. (8)
Andra Pradesh	Fully Adopted	Revised tenancy laws on MTA lines even before the 2021 finalisation.
Uttar Pradesh	Fully Adopted	Revised state law in line with MTA. (9)
Maharashtra	Partially Adopted	Updating older rent-control rules.
Other States	Not Adopted	Still reviewing or planning changes.

How the 2025 Reforms Could Impact the Rental Market?

The 2025 reforms are expected to make renting clearer, safer, and more organised. These changes may create a fairer renting experience for both landlords and tenants across India.

• Better clarity in agreements: A digital and written rent agreement will reduce confusion and protect both sides.
• Lower moving cost: Security deposits will be limited, making it easier and more affordable for tenants to move.
• Stable renting system: Clear rules for rent increases and evictions will reduce sudden changes and disputes, creating a more secure rental environment.

Key Features of the Model Tenancy Act 2021

1. After the entry of the act, all property, residential and commercial, will be put out for rent only upon a written agreement between the parties on mutually agreed terms.
2. The Act establishes a three-tier dispute system comprising the rent authority, the rent court, and the rent tribunal for the resolution of rental conflicts.
3. For residential properties, the security deposit is 2 months' rent.
4. For non-residential property, it will be as per the rental agreement, with a maximum of 6 months.
5. The landlord will refund the security deposit once the tenant has vacated the property, after deducting any unpaid dues or damage.
6. The landlord is entitled to get compensation if a tenant does not vacate the premises after tenancy has been terminated by order the compensation is double the monthly rent for two months and four times the monthly rent thereafter.
7. If the property's condition deteriorates to the point that the tenant cannot leave, the landlord will allow the tenant to stay for another month, extending the rental agreement.
8. The tenant cannot sublet the property or have any structural changes done unless the landlord and the tenant agree upon it.
9. The rent authority needs to be informed about the signing of the rental agreement within two months of its signing.
10. An officer who has the rank of deputy collector or higher has the responsibility to act as a rent authority to mediate any issue that comes about out of a rental disagreement.

Benefits of the Model Tenancy Act

The Model Tenancy Act helps make renting safer and transparent for both parties. It improves trust and reduces disputes through clear guidance.

• Fair Agreements: Standard written agreements ensure clear terms, reducing misunderstandings, and protecting both parties throughout the rental period.
• Lower Financial Burden: Security deposit limits prevent landlords from demanding excessive amounts, making renting more affordable for tenants.
• Faster Dispute Resolution: Dedicated rent authorities and tribunals provide quicker solutions than lengthy civil court proceedings, improving rental confidence.

Key Issues And Analysis Of The Model Act

Below are some of the key issues that the Indian real estate sector should and is seeking to address, such as:

• The accessibility, availability, and need to formalize the real estate rental market in India.
• Specifying the smallest details of what must be included in the rent agreement including regular structural repairs, maintenance, as well as security deposit. 
• Mandating the Aadhaar number for submission can also lead to the violation of the privacy of either party to a rental contract.
• The adjudicatory bodies' failure to mention the resolution timelines of certain disputes is vital when disputes lead to the withholding of essential services and rent revisions.  

How NoBroker Can Help With Online Rent Agreement

NoBroker makes creating a legal online rent agreement quick and hassle-free. Their expert team handles drafting, e-stamp, doorstep biometric verification, and registration. With transparent pricing, no brokerage fees, and guided support, tenants and landlords can easily follow the house rent rules in 2025. NoBroker ensures accuracy, secure documentation, and timely delivery, making the renting process smooth and convenient. 

Disclaimer: This content is for general information only and does not constitute legal advice. Always consult official sources or legal professionals for state-specific tenancy laws and updates.

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