Rent Rules 2025: New rules for tenants and landlords, learn the full details
The Rent Rules 2025 introduce significant changes for both tenants and landlords. Security deposits will now be limited to two months' rent, rent can be increased only once a year, and disputes will be resolved within 60 days.
Rent Rules 2025: The Rent Control Act has been enacted in India to regulate the relationship between tenants and landlords. Its purpose is to protect tenants from unfair evictions, maintain reasonable rents, and balance the interests of both parties. The central law came into effect in 1948, but each state has developed its own rules, which may cause some rules to vary depending on the location of the property.
Rent Rights
The Rent Control Act provides protection for both landlords and tenants. Tenants have the right to protection from unfair evictions, secure fair rent, and have uninterrupted access to essential services. Eviction can only be made for legal reasons, and in most states, a court order is required.
Landlord's Rights
The landlord has the right to secure the use of the property, set the rent, and require repairs or short-term occupancy if necessary. The Act helps landlords ensure the safety of their investment and property.
Simple Rent and Tax Rules
- Simple Tax Rules: Both landlords and tenants know how much tax they will pay.
- A Type of Rent Agreement: A written and registered contract, reducing disputes.
- Clear Rent Increase: Rent can only be increased once a year with notice.
- Deposit Limit: Security deposits are limited to only 2 months' rent.
- Quick Dispute Resolution: Rent Tribunals will resolve disputes within 60 days.
- TDS Benefits: TDS will not be levied on annual rental income up to ₹6 lakh.
A written contract is mandatory for renting or leasing any residential or commercial property in India. The contract must be signed and dated by both parties, be on stamp paper, and registration is required if the period exceeds 11 months. Without a valid contract, the rights of the landlord and tenant are not legally protected.
When the Act Does Not Apply
The Rent Control Act does not apply to properties leased to a private or public company with a capital of ₹1 crore or more. It also does not apply to properties leased to PSUs, banks, corporations under state or central laws, or to foreign companies and international agencies.
Documents and Validity of Contracts
For a commercial rental contract, it is mandatory to have a PAN card, government identification, passport, business proof, a stamped agreement, the company's memorandum of association, and other necessary documents. All parties must be given a copy of the contract and given time to read and understand it.
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