Renting in India: the rules, simplified
What the law actually says about rent agreements, security deposits, registration, and your rights as a landlord or tenant — plus how big India's rental market really is.
Source: Census of India 2011. Nearly four-fifths of India's rented households are in urban areas.
The Model Tenancy Act, 2021
Approved by the Union Cabinet in 2021, the Model Tenancy Act is a template law that states adopt and adapt. It rebalances landlord–tenant rights. Here's what it sets out:
A written agreement is mandatory
Every tenancy must be backed by a written agreement specifying the rent, tenure, terms for rent revision, security deposit, and each party's maintenance responsibilities.
Security deposit is capped
The deposit is capped at a maximum of 2 months' rent for residential premises, and 6 months' rent for non-residential (commercial) premises.
Register with the Rent Authority within 2 months
Both landlord and tenant must jointly inform the District Rent Authority of the tenancy within two months of signing, via the prescribed (digital) process.
Rent can be revised only once a year
A landlord cannot raise rent arbitrarily mid-tenancy. Rent may be revised as per the agreement, and any increase requires 90 days' prior written notice.
24 hours' notice before the landlord enters
The landlord must give at least 24 hours' written notice before entering the premises for repairs or inspection, protecting the tenant's right to privacy.
Deposit must be refunded on exit
The security deposit must be returned at the time the tenant hands back vacant possession, after lawful deductions for unpaid dues or damage.
Dedicated dispute resolution
Disputes go to a three-tier system — Rent Authority, Rent Court, and Rent Tribunal — instead of regular civil courts, for faster resolution.
The Model Tenancy Act applies only where a state has adopted it. Always check your state's specific tenancy/rent control act for binding rules.
What makes a rent agreement valid
Stamp paper / e-stamp is required for legal validity
The agreement content must be printed on stamp paper of the value prescribed by your state (or e-stamp via SHCIL/NeSL). Stamp duty varies by state and by rent + deposit value.
The 11-month convention
Many agreements are made for 11 months because tenancies of 12 months or more typically trigger compulsory registration under the Registration Act, 1908.
Registration vs notarisation
Registration at the Sub-Registrar's office gives the strongest legal standing. Notarisation is lighter-weight and accepted for short tenures in several states — check your state's rule.
Two witnesses are standard
Most states expect the agreement to be signed by the landlord, the tenant, and two witnesses, each with identity details.
Rent rules & data by city
Rent agreement in Mumbai
Maharashtra · 1,24,42,373 people (2011) · 27% urban rented
Rent agreement in Delhi
Delhi (NCT) · 1,67,87,941 people (2011) · 28% urban rented
Rent agreement in Bengaluru
Karnataka · 84,43,675 people (2011) · 46% urban rented
Rent agreement in Hyderabad
Telangana · 68,09,970 people (2011) · 44% urban rented
Rent agreement in Ahmedabad
Gujarat · 55,77,940 people (2011) · 24% urban rented
Rent agreement in Chennai
Tamil Nadu · 46,46,732 people (2011) · 40% urban rented
Rent agreement in Pune
Maharashtra · 31,24,458 people (2011) · 27% urban rented
Rent agreement in Lucknow
Uttar Pradesh · 28,17,105 people (2011) · 15% urban rented
Ready to create your agreement?
Score99 builds a legally formatted, state-specific rent agreement in 2 minutes for ₹199 — with all the clauses the law expects.
Create My Agreement — ₹199Sources & references
- The Model Tenancy Act, 2021 — PRS Legislative Research
- Ministry of Housing & Urban Affairs — Model Tenancy Act
- The Registration Act, 1908 (registration of leases)
- Census of India 2011 — Houselisting & Housing data (Office of the Registrar General)
- Ministry of Housing & Urban Affairs — State/UT-wise urban rental share, Census 2011 (data.gov.in)
- Knight Frank Research — Institutionalising the Rental Housing Market in India (2019)
This guide is general information, not legal advice. Consult a lawyer for your specific situation.