The real estate rental market in India has long faced challenges ranging from disputes over rent hikes to unclear eviction rules. Historically, old rent control laws skewed heavily towards tenant protection, discouraging landlords from renting out vacant properties. This imbalance led to a rental housing shortage despite rising urban demand.
To resolve these issues, the Government of India introduced the Model Tenancy Act (MTA) in 2021. As of 2025, several states have either fully or partially adopted the Act to create a balanced, transparent, and modern rental framework. The MTA seeks to protect both landlords and tenants by clearly defining rights, responsibilities, and dispute resolution mechanisms.
This blog takes a deep dive into every important aspect of the Model Tenancy Act in 2025, answering critical questions tenants and landlords are asking today.
What is the Model Tenancy Act and how does it work in 2025?
The Model Tenancy Act, 2021, is a framework law designed to regulate rental housing in India. In 2025, its adoption ensures:
- Written rental agreements are legally mandatory.
- Rent disputes are handled by a Rent Authority, Rent Court, and Rent Tribunal.
- Tenancy terms are balanced to safeguard both landlords and tenants.
The Act does not automatically override state laws, but states can adopt or adapt it. Its central aim is to formalize rental housing, reduce disputes, and increase supply in the rental market.
How is the Model Tenancy Act different from old rent control laws?
Unlike archaic rent control laws, which froze rents and made eviction nearly impossible, the MTA allows market-driven rents while protecting tenants from arbitrary actions.
- Rent is mutually agreed upon by landlord and tenant.
- Rent increases follow clear guidelines instead of arbitrary hikes.
- Tenants can’t be forced out without proper legal grounds.
- Landlords regain confidence to rent out vacant properties.
This shift transforms the rental housing ecosystem by balancing interests instead of favoring one side.
What is the security deposit limit under the Model Tenancy Act?
The Act specifies:
- Residential properties: Maximum two months’ rent as security deposit.
- Commercial properties: Up to six months’ rent.
This limit prevents landlords from demanding excessively high deposits, which was a major deterrent for many tenants in urban areas.
Does the Model Tenancy Act cap security deposits at two months for residences?
Yes. For residential properties, landlords cannot demand more than two months’ rent as a deposit. This is particularly beneficial in metros, where deposits often equaled 6–12 months of rent under old practices.
Can a landlord raise rent under the Model Tenancy Act and by how much?
Yes, landlords can raise rent, but conditions apply:
- Rent hikes must be as per the terms of the rent agreement.
- In absence of an agreement, landlords must give three months’ written notice before increasing rent.
- Arbitrary, sudden hikes are not permitted.
This structured approach creates predictability for tenants while allowing landlords fair returns.
What are the eviction rules for tenants under the Model Tenancy Act?
The Act lays down clear eviction rules, ensuring tenants cannot be forced out unfairly. Grounds for eviction include:
- Tenant not paying rent for more than two consecutive months.
- Tenant misusing the property or causing significant damage.
- Landlord needing the property for personal use.
- Expiry of the tenancy period without renewal.
This clarity eliminates the ambiguity that plagued older rent laws.
Can tenants be protected from arbitrary eviction under the Model Tenancy Act?
Yes. The Act ensures tenants cannot be evicted without due legal process. A landlord must present valid grounds before the Rent Court, offering protection against harassment or forced eviction.
How fast are disputes resolved under the Model Tenancy Act (Rent Authority/Rent Court)?
One of the Act’s most significant improvements is time-bound resolution of disputes:
- Rent Authority must resolve cases within 60 days.
- Rent Court and Tribunal must also deliver decisions within timeframes specified under the Act.
This is a big shift from older systems, where disputes dragged on for years.
Is a written rent agreement mandatory under the Model Tenancy Act?
Yes. Every tenancy under the Act requires a written rent agreement registered with the Rent Authority. Oral agreements have no standing, ensuring transparency and legal enforceability.
What are a landlord’s maintenance responsibilities in the Model Tenancy Act?
The Act clearly divides responsibilities:
- Landlord’s duties: Structural repairs, whitewashing, external maintenance, and utilities.
- Tenant’s duties: Day-to-day upkeep, minor repairs, cleanliness, and damage caused by negligence.
This eliminates disputes about who pays for what, creating accountability on both sides.
Does the Model Tenancy Act require landlord notice before inspections/entry?
Yes. Landlords must give at least 24 hours’ written notice before entering the premises for inspections, repairs, or other purposes. Entry is allowed only between 7 AM and 8 PM, ensuring tenant privacy.
How do I file a complaint with the Rent Authority under the Model Tenancy Act?
Tenants or landlords can file a complaint directly with the Rent Authority.
Steps typically include:
- Submitting a written complaint or online application (if available in your state).
- Providing a copy of the rent agreement and supporting documents.
- Awaiting a hearing, after which the Rent Authority issues an order.
This system prevents overcrowding of civil courts and ensures faster justice.
Are real estate agents or brokers covered by compliance under this Act?
Yes. Brokers facilitating rental transactions must also comply with the Act’s provisions. This includes ensuring proper documentation, adherence to rent agreement rules, and fair brokerage practices.
How to check if my state has adopted the Model Tenancy Act in 2025?
Since housing is a state subject, adoption varies. You can check by:
- Visiting your state’s housing or urban development department website.
- Contacting the local Rent Authority.
- Consulting real estate professionals familiar with state-specific updates.
By 2025, several states have adopted or are in the process of aligning with the Act, but adoption is not yet uniform.
What’s the difference between the Model Tenancy Act and RERA for renters?
While both aim at real estate reforms, their scope differs:
- RERA (Real Estate Regulation Act): Governs developers, builders, and buyers in property sales.
- MTA (Model Tenancy Act): Regulates landlord-tenant relationships in rental housing.
Together, they address both buying and renting aspects of India’s real estate sector.
Conclusion
The Model Tenancy Act in 2025 is a transformative step in creating a transparent, fair, and efficient rental housing ecosystem in India. By capping security deposits, mandating written agreements, regulating rent increases, and setting clear eviction rules, the Act brings much-needed clarity to landlord-tenant relationships.
For tenants, it offers protection from exploitation and arbitrary eviction. For landlords, it restores confidence by enabling faster dispute resolution and ensuring rent recovery. By fostering balance, the Act is expected to unlock millions of vacant homes for rental use, benefiting the overall housing market.
At Housiey, we aim to keep homebuyers and renters informed with the latest updates on real estate policies, regulations, and market trends.
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