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Tenants and Landlords in India – What the Kanoon Angle of it as per Model Tenancy Act 2021?

Updated: Dec 9, 2025


Have you ever rented a house and suddenly faced a steep rent hike? Or struggled to get your security deposit back? On the other hand, are you a landlord dealing with a tenant who refuses to vacate or pay rent on time?


Such disputes are extremely common in India, which is why tenancy laws exist—to protect the rights of both landlords and tenants and maintain a fair balance.


The first central law in this area was the Rent Control Act, 1948. But since “land and property” fall under the State List in the Constitution, every State enacted its own tenancy legislation. Naturally, this led to wide variations across India.

To modernise the rental sector and bring some uniformity, the Government introduced the Model Tenancy Act (MTA), 2021. The MTA was approved by the Union Cabinet on 2 June 2021 and circulated by the Ministry of Housing and Urban Affairs on 7 June 2021 for States and UTs to adopt. But because land is a State subject, the Act does not automatically apply across India. Each State must either adopt it as-is or adapt it into its own tenancy law.


MANDATORY DIGITAL RENT PORTAL

Now under the Tennacy act 2021, after this Act comes into force in any state, within three months of being appointed, the Rent Authority must set up a digital platform—in the local or State language—to allow people to submit all required documents online.


WRITTEN AGREEMENT

  • No landlord or tenant can rent a property without a proper written agreement. Once the agreement is signed, both parties must inform the Rent Authority about it—together—using the form given in the First Schedule of the act. This has to be done within two months of signing the tenancy agreement.If the landlord and tenant fail to jointly inform the Rent Authority within the original two-month period, they must separately inform the Authority within the next one month.

  • If a landlord appoints a property manager, the scope of the manager’s authority must be clearly mentioned in the tenancy agreement and mutually agreed upon by both landlord and tenant.

  • Also, the information submitted to the Rent Authority—whether jointly or separately—will be treated as final proof of the tenancy. If neither party submits this information, they cannot claim any benefits or protections under this Act.

  • Once the Rent Authority receives the tenancy agreement and the required documents, it must, within seven working days, issue a unique ID to both parties and upload the details of the agreement on its website in the local or State language.


RENEWAL OF AGREEMENT

  • Every new tenancy will last for the period agreed upon in the written tenancy agreement. If the tenant wants to stay longer, they must request a renewal within the agreed time, and a fresh agreement can be made if the landlord agrees.

  • If the tenancy ends and the tenant doesn’t vacate or renew, they must pay enhanced rent.

  • In case the tenancy expires during a natural disaster (force majeure), the tenant may request to stay, and the landlord must allow them to remain for up to one month after the disaster ends, on the same terms.


SUB-LETTING

  • After this Act comes into force, a tenant cannot sub-let the premises or transfer/assign any part of their tenancy rights unless they sign a supplementary agreement with the landlord.

  • If any sub-letting is done through such a supplementary agreement, both the landlord and tenant must jointly inform the Rent Authority within two months using the form in the First Schedule.


RENT AND REVISION

  • Rent will be whatever the landlord and tenant mutually agree to in the tenancy agreement. Any revision of rent must also follow those agreed terms.

  • If the landlord makes improvements or structural changes with the tenant’s written consent, the rent can be increased as mutually agreed, effective one month after the work is completed.

  • If there is any dispute about revised rent, the Rent Authority will decide the new rent and the date from which it applies.


SECURITY DEPOSITS

The tenant and landlord can mutually decide the security deposit, but it cannot exceed:

  • 2 months’ rent for residential premises

  • 6 months’ rent for non-residential premises

The deposit must be refunded to the tenant when they hand over the vacant possession, after deducting any dues or liabilities.


DUTIES AND OBLIGATIONS OF TENANT AND LANDLORD

  • The tenancy agreement must be signed in duplicate by both the landlord and tenant, with each retaining one copy, and rent or other charges must be paid as agreed in the agreement.


  • The landlord or property manager is required to issue a receipt for every payment, and in the case of electronic payment, the bank acknowledgment serves as sufficient proof. If the landlord refuses to accept rent or provide a receipt, the tenant may pay via postal money order or deposit the amount with the Rent Authority until the matter is resolved.


  • MAINTAINANCE OF THE PREMISE

    • Regardless of any written agreement to the contrary, both the landlord and tenant must maintain the premises in the same condition as at the start of the tenancy, except for normal wear and tear. The tenant shall be responsible for day-to-day upkeep and minor repairs, while both parties are responsible for repairs as specified in the Second Schedule of the act or agreed to in the tenancy agreement.For any common facilities shared among tenants or with the landlord, the responsibility for repair and maintenance of such facilities will be as specified in the tenancy agreement.

    • If the tenant fails or refuses to carry out required repairs, the landlord may do the repairs or remove any unauthorized structures and deduct the cost from the security deposit. If the cost exceeds the deposit, the tenant must pay the excess amount within one month of receiving notice from the landlord.If the landlord refuses to carry out necessary repairs, the tenant may do the repairs themselves and deduct the cost from future rent, provided that the deduction in any single month does not exceed 50% of the agreed monthly rent.

    • If the rented premises becomes uninhabitable due to a force majeure event—such as war, flood, drought, fire, cyclone, earthquake, or any other natural calamity—the landlord cannot charge rent until the premises are restored to a habitable condition. If the landlord fails to carry out the necessary repairs or the premises cannot be made habitable, the security deposit and any advance rent must be refunded to the tenant within 15 days of the notice period, after deducting any tenant liabilities.


ENTRY INTO PREMISE

A landlord or property manager may enter the rented premises for repairs, inspections, or other reasonable purposes specified in the tenancy agreement, after giving at least 24 hours’ written or electronic notice stating the day, time, and reason. Entry cannot be before sunrise or after sunset, except in emergencies like war, flood, fire, cyclone, earthquake, or other natural calamities, where prior notice is not required.


PROPERTY MANAGER

  • If a landlord appoints a property manager, they must inform the tenant of the manager’s name, proof of authorization, the specific purposes and duration of their authority, and, if the manager is a legal entity, the name of the entity and authorized contact person.

  • The property manager is responsible for collecting rent and issuing receipts, carrying out essential repairs, inspecting the premises, issuing notices for maintenance, delayed rent, rent revision, vacation, or renewal, and helping resolve disputes, but must act on all other tenancy matters only as instructed by the landlord.

  • If the property manager acts against the landlord’s instructions or violates these duties, the Rent Authority may remove them or impose costs to compensate any loss incurred by the landlord or tenant.


WITHHOLDING OF ESSENTIAL SERVICE

  • No landlord or property manager shall, directly or indirectly, withhold any essential supply or service—such as water, electricity, piped gas, lighting in passages, lifts, conservancy, parking, communication links, sanitary services, or security features—from the tenant.

  • If they do, the tenant can apply to the Rent Authority, which may issue an interim order to restore the services immediately and conduct an enquiry within one month.

  • After giving both parties a fair hearing, the Rent Authority may award compensation up to two months’ rent to the tenant for any loss incurred. However, if the application is found to be frivolous or vexatious, the Authority may levy a penalty up to twice the monthly rent on the tenant.


EVICTION AND RECOVERY OF POSSESSION

A tenant cannot be evicted during the tenancy unless agreed in writing, except under certain conditions. The Rent Court may order eviction on grounds such as:

  1. Non-payment of rent as agreed;

  2. Arrears of rent or other charges for two consecutive months;

  3. Sub-letting or transferring possession without the landlord’s written consent;

  4. Misuse of premises, including encroachment, public nuisance, damage, or illegal/immoral use;

  5. Need for repairs, construction, rebuilding, addition, alteration, or demolition that requires vacating the premises, subject to mutual agreement for re-occupation;

  6. Change in land use authorized by the competent authority requiring the premises;

  7. Tenant’s written notice to vacate where landlord’s interests (e.g., sale of premises) would suffer;

  8. Structural changes or erection of permanent structures without landlord’s consent.


Special Povision

A tenant cannot be evicted for non-payment of rent if they pay the arrears, along with any interest, within one month of receiving the demand notice. However, if the tenant fails to pay rent for two consecutive months after availing this relief in a year, they cannot claim the same relief again. Additionally, in cases of partial repair or construction, the Rent Court may allow eviction from only a part of the premises, provided the landlord agrees.


PENALTY FOR OVERSTAYING TENANCY

If a tenant fails to vacate the rented premises after the tenancy ends or is terminated, they must pay the landlord double the monthly rent for the first two months and four times the monthly rent thereafter until they leave the premises.


PAYMENT OF RENT DURING EVICTION PROCEEDINGS

The eviction proceedings (except for non-payment of rent or arrears), if the tenant contests the claim, the landlord can request the Rent Court to direct the tenant to pay the due rent and other charges, including any penal charges for delay, as per the tenancy agreement.


STRUCTURAL CHANGES AND IMPROVEMENTS

  • A tenant cannot make any structural changes or erect permanent structures in the rented premises without the landlord’s written consent.

  • If the landlord wishes to make improvements or construct additional structures and the tenant refuses, the landlord may apply to the Rent Court. If satisfied that the work is necessary, the Court may permit it, ensuring that the improvements do not reduce or deteriorate the tenant’s accommodation.

  • Any unauthorized structures built by the tenant must be removed by the tenant.


TENANT'S RIGHT TO VACATE

A tenant may surrender the rented premises by giving written notice as required in the tenancy agreement. If the agreement does not specify a notice period, the tenant must provide at least one month’s notice to the landlord before vacating.


TENANCY AUTOMATICALLY PASSED TO LEGAL HEIRS

If the landlord or tenant dies, the tenancy agreement remains binding on their legal successors. The successors will have the same rights and obligations under the agreement as the original parties.


EVICTION ON BONAFIDE REQUIREMENT BY LEGAL HEIRS

If the landlord dies and their legal heirs have a bonafide need for the rented premises during the tenancy, they may apply to the Rent Court for eviction and recovery of possession. The Rent Court, if satisfied that the requirement is genuine, can order the tenant to hand over vacant possession of the premises to the legal heirs.



CONCLUSION

The Model Tenancy Act, 2021 aims to create a fair and transparent rental system in India, protecting the rights of both landlords and tenants by clearly defining rent, security deposits, maintenance responsibilities, eviction rules, and dispute resolution mechanisms. However, it is important to note that the Act is only a proposed framework, and states or union territories may modify it when enacting their own tenancy laws. So far, only four states—Andhra Pradesh, Tamil Nadu, Uttar Pradesh, and Assam—have adopted or revised their rent laws based on this model. This article is therefore most relevant for residents of these states, while tenants and landlords in other states should refer to their own state-specific tenancy laws and regulations.


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