The Model Tenancy Act, 2021: What Renters and Landlords Should Know
India's Model Tenancy Act caps deposits, mandates written agreements and sets up dedicated rent courts — here's what actually changes.
- Act
- Model Tenancy Act, 2021 (2021)
- Act number
- Not a numbered central Act — a model law approved by the Union Cabinet on 2 June 2021 for voluntary adoption by states and UTs
- Enacting authority
- Ministry of Housing and Urban Affairs (MoHUA), Government of India
This article is for general information only and does not constitute legal advice. Always verify current provisions against the official source before relying on them.
Why the Act exists
The Model Tenancy Act, 2021 is a framework law passed by the Union Government for states to adopt, aimed at formalising India's largely undocumented rental market and balancing the interests of landlords and tenants.
Because rental housing sits under the State List, each state must separately adopt or adapt the model before it takes legal effect locally — it is not automatically binding nationwide.
Security deposit caps
Residential security deposits are capped at two months' rent and six months' rent for non-residential (commercial) premises — a firm ceiling in states that adopt the Act as written.
The deposit must be refunded when the landlord takes back vacant possession, after adjusting for legitimate dues.
Written, registered agreements
Every tenancy needs a written agreement specifying rent, tenancy period and terms. A key reform requires agreements to be digitally stamped, registered online and jointly reported to the District Rent Authority within two months of execution.
This creates a public record that both parties can rely on in a dispute.
Rent revisions and eviction grounds
Landlords must give at least three months' written notice before revising rent and any increase has to follow what the agreement already specifies.
Eviction is only permitted on defined grounds: refusal to pay agreed rent, non-payment for more than two months, occupying more area than agreed without consent, or misusing the premises after a written warning.
Faster dispute resolution
The Act sets up a three-tier system — Rent Authorities, Rent Courts and Rent Tribunals — so tenancy disputes bypass slow civil courts.
Most cases are meant to be resolved within sixty days, with reasons recorded if that timeline slips.