If you’ve ever rented a home in India, you probably know the feeling. A hefty security deposit. A vague verbal promise. And the constant worry of sudden rent hikes or eviction. Now here’s the surprising part. In 2026, that messy system is finally being cleaned up.
Thanks to wider adoption of the Model Tenancy Act rental rules 2026, India’s rental market is becoming more transparent, fair, and predictable. Not overnight. Not perfectly. But the shift is real, and it matters if you’re a tenant or a landlord.
Mandatory Written and Registered Rental Agreements
Here’s the thing. Verbal rental agreements are slowly losing their charm and their safety.
In many states, all new rental agreements must now be written and digitally registered with the local Rent Authority, usually within 60 to 90 days. This creates an official record with a unique ID. No more “he said, she said” arguments.
I’ve seen disputes drag on for years simply because nothing was written down. Registration changes that. It protects both sides and makes informal arrangements risky rather than convenient.
Security Deposit Caps That Actually Help Tenants
This is one of the biggest relief points for renters.
Under the Model Tenancy Act rental rules 2026, security deposits are capped. For residential homes, landlords can collect a maximum of two months’ rent. For commercial properties, the cap is six months.
In cities like Mumbai or Bengaluru, where tenants once paid six to ten months upfront, this is a real financial breather. Refunds must also be processed within 30 to 45 days after the tenancy ends, minus genuine repair costs.
Rent Increase and Eviction Are No Longer Random
Think about it. Would you accept a sudden rent hike with no warning?
Now, rent increases must follow what’s written in the agreement, usually with a prior notice of around 90 days. Arbitrary hikes are restricted.
Evictions also need valid reasons, such as non-payment or property misuse. Most disputes go through Rent Authorities or Rent Courts instead of slow civil courts, which means faster outcomes and less stress.
Key Differences at a Glance
| Aspect | Residential Details | Commercial Details |
|---|---|---|
| Security Deposit Limit | Maximum two months’ rent | Maximum six months’ rent |
| Agreement Registration | Mandatory within 60 to 90 days | Mandatory within 60 to 90 days |
| Rent Increase Notice | As per agreement, often 90 days | As per agreement |
| Eviction Process | Rent Authority or Court | Rent Authority or Court |
| Maintenance | Landlord structural, tenant daily | As agreed |
| Dispute Resolution | Fast-track Rent Courts | Fast-track Rent Courts |
Clearer Responsibilities for Both Sides
Landlords must handle structural repairs and cannot cut essential services like water or electricity. Tenants are expected to maintain daily upkeep and pay rent on time.
This clarity reduces friction. Everyone knows their role, and conflicts drop before they even start.
Why These Rental Rules Matter in 2026
Urban migration is rising fast. A massive part of India’s housing market still runs informally. These rules help bring order without scaring landlords away.
Tenants get protection and affordability. Landlords get quicker recovery and legal backing. Just remember, implementation varies by state, so always check your state’s official portal.
Fair rules build trust. And trust is exactly what India’s rental market needed.
Frequently Asked Questions
Is the Model Tenancy Act mandatory across all Indian states?
No. The Model Tenancy Act provides a framework. States choose how and when to adopt it. Many have already implemented key provisions, while others are rolling them out gradually. Always verify local rules.
How long does it take to register a rental agreement?
In most adopting states, registration must be completed within 60 to 90 days of signing the agreement. Digital portals have made the process faster and more transparent than traditional paperwork.
Can landlords still evict tenants under the new rules?
Yes, but only with valid reasons such as non-payment of rent or misuse of property. Evictions now go through Rent Authorities or Courts, which speeds up resolution and reduces unfair practices.