What Changes Under Rent Agreement 2025? New Rules to Stop Arbitrary Rent Hikes & Speed Up Dispute Settlements

The Central Government has enforced the new “Rent Agreement 2025” rules across the country with the aim of reducing disputes between landlords and tenants. The updated policy is expected to make renting a house easier and bring more transparency and reliability to the property leasing system. As per the information received, every rent agreement must now be registered within two months from the date of signing. Registration can be completed either on the State Government’s Online Property Registration Portal or at the Registrar’s office. Failure to register within the deadline will attract a fine of ₹5,000.

Key Relief for Tenants Under New Rules

Tenants are likely to receive major relief due to several favourable changes. For residential properties, landlords can now collect only a security deposit equivalent to two months’ rent, preventing the earlier burden of unusually high advance payments, especially seen in cities like Bengaluru where one year’s rent was demanded upfront. For any increase in rent, landlords must mandatorily issue prior notice to the tenant to avoid arbitrary increments. Additionally, no tenant can be forcefully evicted without proper notice and completion of legal procedure, ensuring protection from sudden displacement.

Benefits for Landlords and the Rent Agreement Registration Process

Landlords, too, receive significant support under the revised law. If a tenant fails to pay rent for three consecutive months or more, the landlord is allowed to take the matter to the Rent Tribunal. Special tribunals have been set up to resolve disputes within 60 days, providing a much faster dispute-redressal mechanism. Tax benefits have also been improved, increasing the TDS exemption limit on rent to ₹6 lakh annually, allowing more savings for property owners. To register a rent agreement, users must visit their state’s property registration portal, upload ID proofs of both parties, fill in rent details, e-sign the document and submit it for completion.