Tenant’s Checklist 2025: What You Must Know Before Signing A Lease Under The New Rent Agreement Rules?

The Model Tenancy Act serves as the foundation for the New Rent Agreement 2025, which has been presented by the Union government and will now focus on providing transparency, accountability, and structure to the relations between renters and landlords.

Digital contracts and orderly deposits and timely dispute resolution will bring order to the rental system, which has otherwise been rather unorganized. Selected members of the real estate industry share with us the insights tenants should keep in mind during the time of lease signing next year.

Digital Contracts & Mandatory Registration Bring Clarity

Moving towards mandatory digital stamping and registration of rental agreements is a significant improvement. This policy aims to provide certainty and ensure all parties possess documentation that is legally accepted.

Sandeep Mangla, Managing Director, Forteasia Realty Pvt. Ltd., says that, "With the Home Renting 2025 coming into effect, the New Model Tenancy Act will bring formal structure to the renting ecosystem. By requiring landlords to register, the ease of the renting process will be increased, as there will be little ambiguity within the agreements."

The clearly defined terms of the evictions and 60 days of tribunal resolution protect the absence of guarantees for tenants and serve as a protective measure for landlords, as there will always be a resolution of balance with the process of standing empty housing.

Standardised Rent Agreements to Reduce Disputes

The purpose of the introduction of standardised rental agreements is to bring to an end the disorganised and fragmented agreements that are prevalent within tenancy. With clear rules regarding rent increments, fines, notice periods, and other variables, landlords and tenants work on predefined and harmonised agreements.

According to Anurag Goel, Director, Goel Ganga Developments,"this will be the first rent legislation for the Indian real estate sector in all its 2025 reforms. Systematic rent agreement formats eliminate the extreme cases of the unregulated agreements. The mandatory three-month notice period for rent increases is a welcome addition to transparency."

For small to medium landlords, increasing the TDS exemption threshold on rental income to Rs 6 lakh is a plus. These measures reduce conflict with landlords and will, in all likelihood, enhance long-term stays in the rental housing for a more stable and structured market.

Deposit Caps & E-Agreements to Improve Affordability

Given that there is a two-month cap placed on the security deposit, removing the affordability hurdle is now more attainable, particularly for first-time renters, working professionals, and students. The generation of easily accessible, enforceable, and traceable electronic agreements is also an added advantage in terms of legal protection.

As Siddharth Maurya, Founder & Managing Director, Vibhavangal Anukulakart Pvt. Ltd. states: "All contracts to be stampable e-agreements mean every deal is enforceable, giving peace of mind to the landlords. The deposit cap drives affordability. Prolonged disputes will be prevented by Special rent courts and 60-day tribunals, aiding operators to manage delinquency more efficiently."

Faster Dispute Resolution to Unlock Idle Housing Stock

Having legal processes that are speedy, especially for disputes that are targeted for 60 days, will help encourage landlords to bring in properties that are unused to the rental market. Standardised agreements help with the prevention of hidden clauses that tend to disadvantage the tenants.

As Pramod Kumar Gupta, Director, Kadamashree Developers India LLP, states, ''The Home Rent Rules 2025 clarify the confusion within the rental market. Standardising agreements prevents the inclusion of hidden clauses."

Capping the amount landlords are able to charge for deposits will make housing within the market more affordable. Protection from arbitrary evictions will assist the most unprotected of tenants. Moreover, the whistleblowers will be encouraged to make available housing stock that is underutilised.

What Tenants Should Prioritise in 2025?

Tenants should focus on the following things as the rules come into effect:

• Registered with the government and digitally stamped agreements
• Two months' housing deposits.
• Rent hike provisions must provide a 3-month notice
• Evictions must include safeguards to provide adequate notice.
• The new and improved tribunal system.

The Home Renting Rules 2025 represent a monumental change in India concerning the rental housing market and the ease of access tenants have within the market. This is the beginning of a new, more innovative housing ladder in India.

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