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India’s rental market just got a new rulebook.
Several states have begun implementing what is being called the New Rent Rules 2026 — a framework built on the Model Tenancy Act that changes how rental agreements work, how deposits are handled, and what happens when a tenant refuses to leave.
Most tenants have no idea this exists. And most landlords are carrying on as usual.
Here is what has actually changed.
Deposits are now capped — officially
The rules restrict landlords from asking for more than two months’ rent as a security deposit for residential properties. This ends the long-standing practice of demanding six, eight, or even eleven months upfront.
In cities like Bengaluru and Hyderabad, this is increasingly being followed. In Mumbai and Delhi NCR, two to three months is becoming the norm — though enforcement is still patchy.
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Digital registration is now the standard
Agreements must be registered through state digital portals. In Bengaluru, the Kaveri Online Services portal handles this. The old system of printing on stamp paper, getting signatures, and hoping for the best is being replaced with tracked, timestamped digital records.
This matters because it creates a paper trail that neither party can quietly alter later.
Overstay now has a real cost
This is the part landlords will love and some tenants will dread.
If a tenant stays beyond their lease end date without agreement, the landlord can now claim compensation at up to twice the monthly rent for the first two months of unauthorised stay. After that, it goes up to four times the monthly rent.
The intent is straightforward — stop tenants from treating an expired lease as an indefinite right to stay.
What this means for you
If you are renting right now, check whether your state has adopted the framework. The compliance requirements vary — Delhi, Gurgaon, and Noida operate under different jurisdictions even within the same metro area.
Get your agreement digitally registered. Keep your payment records. And know your deposit cap.
The rules exist. Whether anyone enforces them is a separate matter. But having the law on your side never hurt anyone.
