Rent Agreement Rules 2025: Check Out the Key Provisions – Fines Up to ₹1 Lakh and Seven Years of Imprisonment for Violations

Are you bound to live in another rental house in a city and are working or have taken a house on lease for commercial reasons? If yes, then you need to know of the new rental rules of 2025. If you do not adhere to these laws, you may need to pay a fine of up to ₹1 lakh and spend up to 7 years in jail.

Bibliophile

Many move to cities in search of jobs, business prospects, and settle in rental accommodations. Unfortunately, most renters don't know what a rent agreement is. There are cases when landlords offer their places on lease without proper written agreements, causing complications such as tax deductions and legal matters later.

For the purpose of protecting tenants and ensuring transparency, the government is implementing the new lease laws in 2025. The objective of these rules is to simplify living in rented houses, reduce the unnecessary fiscal vista and also enhance transparency between landlords and tenants on all rent related bargains.

Salient points in 2025 New Rent Laws

Dereggistration of Rent Agreement

All leases must be recorded and stamped within 60 days,from thereon digitally obliging both sides to be on a firm legal ground.

Security Line Suspension

• Residential properties: Maximum of two months rent as a security deposit.
• Commercial properties: Maximum of six months' rent as a security deposit.

Non-Hiking for 12 Months

Rent cannot be increased for at least 12 months from the date the rent deed is made.

Cancellation Period for Landlords

Received requests will require landlords to act on repairs within thirty days of the property maintenance issues of the issues.

Tax Rule Compliance

When certificate the merchandise exceeds a limit, the lessee is supposed to enforce a 2% TDS on the landlord and then deposit the same with the government, otherwise suffering severe penalties.

Penalties for Non-Compliance

Possible penalties for failure to comply with new rent laws could amount to:

They may condemn the fine up to ₹1 lakh

7-year rigorous imprisonment

These measures are targeted towards bringing clarity and fairness into the rental system while securing the rights of tenants.

Our opinion:

Since leasing is done for residential or commercial purposes, it is essential for the parties to have online rent agreements, security deposits, and putting into action all tax norms. Take action now; this will take care of all unnecessary penalties and legal issues that may arise in the future.