Rental property has always been a great source of regular income for the property owners. It is an affordable provision for those who can’t purchase a property as of now and for those with nuclear families. You can refer to a property listing site in India for the latest updates on the Rent Control Act.
In this informative, we will discuss the latest amendments in the Rent Control Act in 2025. Every landlord and tenant needs to know about which clauses have been changed by the government under the said act.
Indian Rent Control Act 1948
The Rent Control Act was formed in 1948 with the sole motive of safeguarding the interests and rights of both the parties that are registered under this act. It was clearly mentioned in an act that if someone wants to rent a property and the other one wants to work out a rental accommodation to live in, an agreement is mandatory between both parties. This legal deed will further protect them against any fraud or forced action.
Amendment Failure In The Rent Control Act In The 1992
Later, the central government wanted to increase the per year hike percentage to protect properties from being devalued. It was found that irrespective of the increase in the market value of properties, some people were paying the same rent for years. However, the change couldn’t take place then due to strong protests from the people against this amendment.
The Rent Cap Policy, 2025
Recently, in 2025, some major amendments have been made to the rent cap policy to protect the interest of both parties registered under the act. Everybody should know about these changes before working out any apartments on rent in Chandigarh, and other cities in the country.
Rent Agreement In India
Under the latest amendments in the Rent Control Act, it will be necessary for every landlord and tenant to register themselves under an agreement. A copy of this agreement must be submitted to the respective State rent agreement department.
- Annual Rent Hike Capped – Rent increases limited to 5–8% per year
- Mandatory Written Agreements – All rental agreements must be in writing
- Security Deposit Limits – Capped at 2 months’ rent for residential properties.
- No Unauthorized Subletting – Tenants cannot sublet without landlord’s consent.
- Eviction Rules Streamlined – Landlords can evict for non-payment after 2 months.
- Rent Agreement Registration – Landlords responsible for registering agreements.
- Tax Benefits for Homeowners – Up to ₹2 lakh deduction on home loan interest.
- TDS Threshold Increased – TDS on rent applicable if annual rent exceeds ₹6 lakh.
Tenant’s Rights Under The Rent Cap Policy, 2025
The latest amendments in the act protect the rights of tenant.
Essential Services
- The tenant has the right to receive all essential services such as electricity and water. The owner cannot discontinue these services, even if previous rents are pending. From 2025, a standard rent will be implemented—calculated based on property location, number of rooms occupied, available space, and amenities offered. Landlords will no longer be allowed to demand extra charges beyond this regulated amount.
Stay updated with the latest rental laws and property rights only on your trusted online property portal. - Unfair Eviction – The tenant is protected against any unfair Evictions under the latest amendments. At least 3 months of advance notice must be served by the landlord to let the tenant work another place.
Landlord’s Rights Under The Rent Cap Policy, 2025
The latest amendments in the act protect the rights of landlords.
- Rent Charges – It is nowhere mentioned how much rent must be charged by the owner from a tenant for renting a property. However, the owner can now increase the rental charges by 5% – 8% every year.
- Right To Evict – The property owner has all the rights to evict a tenant if, the landlord himself wants to reside in the property due to personal reasons. In case of any discrepancies with a tenant, the owner must go to the court for eviction.
Temporary Repossession Of The Property
A landlord can take the temporary repossession of the property if he wants to make some changes in the physical structure of the house, or for any major repair. However, such changes must not discomfort the interest of a tenant.
Conclusion
You can connect with the best real estate agents in Chandigarh to learn more about your rights protected under the Rent Cap Policy, 2025. Register under an agreement to protect your rights being a landlord or a tenant.
