As rents surge across Indian cities, disputes between tenants and landlords over sudden rent hikes, eviction threats and security deposits are becoming increasingly common.For many renters, the biggest concern is whether a landlord can legally increase rent without prior notice during an active tenancy agreement.What is the New Rent Law? The Rent Law is based on the Model Tenancy Act, 2021, introduced by the Centre to reform India’s rental housing sector. The framework seeks to balance the rights of landlords and tenants by introducing:
- Mandatory written tenancy agreements
- Regulation of rent increases
- Limits on security deposits
- Faster dispute resolution through Rent Tribunals
- Protection against illegal eviction.
However, experts point out that the Model Tenancy Act is not automatically enforceable nationwide. States must adopt or amend their own tenancy laws based on the model framework.According to the Ministry of Housing and Urban Affairs (MoHUA), Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam have already revised tenancy laws broadly in line with the MTA.Can landlords increase rent anytime? Under the new framework, rent revision depends primarily on the terms mentioned in the tenancy agreement. “The revision of rent between the landlord and the tenant shall be in accordance with the terms of the tenancy agreement,” the Act stated.This means landlords cannot suddenly impose a rent hike during an active tenancy period unless the agreement allows it or the tenant gives written consent.Under the proposed rules:
- Rent can generally be revised only once every 12 months.
- Landlords must provide at least 90 days’ prior written notice before increasing rent.
- Any mid-term rent revision requires mutual written consent.
- Arbitrary increases without agreement or notice are prohibited.
Tenants can approach the Rent Authority in case of disputes. “In case of any dispute between a landlord and tenant regarding revision of rent, the Rent Authority may, on an application made by the landlord or tenant, determine the revised rent and other charges payable by the tenant,” the Act said.Security deposit rules in 2025 The new rules also cap the amount landlords can demand as security deposits.As per the Act:
- Security deposits for residential properties cannot exceed two months’ rent.
- For commercial properties, the limit is six months’ rent.
“The security deposit to be paid by the tenant in advance shall… not exceed two months rent, in case of residential premises,” the Act states.The law also says the deposit must be refunded after deducting any legitimate liabilities once the tenant vacates the property.Can landlords enter rented homes without notice? No. The proposed framework states that landlords must provide prior notice before entering a rented property. Under the 2025 rules:
- Landlords must provide at least 24 hours’ written notice.
- Entry should happen during reasonable hours
- Cutting off electricity, water or other utilities to pressure tenants is prohibited.
One of the key features of the proposed rent reforms is the creation of dedicated Rent Authorities and Rent Tribunals aimed at resolving rental disputes faster.Unlike traditional civil court cases that often drag on for years, the tribunals are designed to settle disputes within 60 days. The move comes as tenant-landlord conflicts continue to rise in major Indian cities amid soaring rents, housing shortages and growing urban migration.
