Mumbai’s renting system is set to become fairer and more structured with the introduction of the Home Rent Rules 2025. For years, tenants in Mumbai had to pay huge security deposits, sometimes equal to six to ten months’ rent, just to move into a property. But with the new rules in place, this is expected to change soon.
The new rules are based on the Model Tenancy Act and will make renting transparent, affordable, and safe for both tenants and landlords. Previously, many rental agreements in Mumbai were informal, with no proper documentation or legal clarity. This led to disagreements between tenants and owners, unregulated rent hikes, unclear eviction rules, and large deposits causing financial strain. The new guidelines are designed to solve these problems.
Here are the benefits under the new system:
* Security deposits will now be limited to two months’ rent for homes and six months’ rent for businesses.
* Rent agreements have to be submitted to the local Rent Authority within two months to avoid disputes later.
* Rent increases will follow set rules, and tenants must be informed in advance.
* Evictions cannot happen suddenly; legal procedures must be followed through the rent tribunal.
* Special Rent Courts will resolve disputes within 60 days, providing faster solutions.
* For the landlords, the TDS exemption has increased from INR 2.4 lakh to INR 6 lakh per year.
* From April 2025, all rental income will be taxed under one category, “income from housing property”, simplifying taxation.
* Landlords can take quick action on tenants who miss payments three times a year through the payment tribunal.
* They can also claim tax credits for making improvements, especially for affordable rent or energy-efficient upgrades.
The rules encourage digital processes, including online paperwork, e-stamping, and digital rent agreements to reduce fraud and help make official records.