New Rental Laws Explained: Security Deposit Cap, Entry Rules & Key Changes Tenants and Landlords Must Know

The landscape of rental housing is becoming structured and friendly due respect to the tenants at last. These latest rental laws anchored in the 2021 MTA model are laced up with reforms aiming at, if nothing, some transparency and fairness for the tenants and the landlords.

The rental experience is expected to improve much further with all these changes, especially in cases where most disputes between the landlord and the tenants take place in major cities. Under these changes, the security deposit will not exceed two months; in cities with a bigger commercial presence, that amount can range up to six months.

Signing a lease agreement in writing, which serves as an informal agreement and may lead to legal disputes, is now mandatory.

-Must be jointly notified of the same to the Rent Authority of the respective District.

-Now having the rental document digitally stamped and registered online. Even as two months from the execution of the said document should be adhered to.

- Settlement within sixty days--

This ensures transparency for tenants and offers legal protection to landlords.

🚪 Entry Rules: Notice Required

A landlord or a property manager cannot enter anyone's rented space without notifying them via written or digital notice provided at least twenty-four hours beforehand.

For those purposes, they can enter the said residential space only when

- requested to be present for doing repair or maintenance work,

- inspecting the premises' habitability, or

- any reasonable cause whatsoever under the rental agreement.

⛔ During an emergency, like fire, flood, or earthquake, or even after sundown, no entry must be made before sunrise.

🏠 Eviction Rules

Eviction requires Rent Authority intervention and cannot be just for no reason or without any fairness. The reasons for eviction are as follows:

Two consecutive months without rent due

Rent property misuse

Withdrawal is considered an unauthorized act.

Failure to fully vacate at expiration of rental term, the corporation may seek to recover escalated rent from the tenant.

🔧 Who Does What Regarding Repairs & Maintenance?

Landlord Responsibilities for Maintenance

Major structural repairs

Wall whitening & external painting of doors/windows

Major plumbing lines and heavy electrical wiring

External building maintenance and safety

Tenant Responsibilities

Leaking taps or bathroom fixtures

Drain cleaning

Minor electrical repairs (switches, sockets, and hazardous wire break)

Maintaining any garden or open space.

In case the rental becomes uninhabitable and no repairs are made quickly by the landlord, the tenant is entitled to immediate vacation after giving a written notice of fifteen days. No rent will be payable during the rehabilitation period of the property.

🗺️ States Implementing MTA

The model act was adopted in Andhra Pradesh, Tamil Nadu, Assam, and Uttar Pradesh and is now being expanded. Following suit, Maharashtra and Karnataka are recently imposing similar rules leading to a significant increase in formal rental registrations.

📊 Example:

In Mumbai during the H1 FY2024, the log of rental agreements saw an increment of 13% that needs to be further augmented.

⚡ Who gains significantly more – landlords or tenants?

Expert views consider that the law is balanced and hence it is fair.

Lessons for Tenants Benefit under the new law:

Massive relief from high security deposits (previously 6 to 12 months in cities like Mumbai & Bangalore)

Protection from sudden rental hikes and whimsical eviction

What’s there for the landlords?

Protection against the misuse of the property by the lessee/purchaser

Compensation for overuse of premises after the lease has expired

No subletting without written approval

Conclusion

The new laws related to rent will promote clarity, transparency, and accountability in the Indian housing markets. This will let a young professional, students, and migrant workers enjoy a more hassle-free experience on rent, therefore advancing the rights of the landlords even more.

With more states coming forth wherein implementation of the Model Tenancy Act, the rental ecosystem will grow more organized and trustworthy.