Understanding the Model Tenancy Act: Key Changes for Landlords and Tenants

The Model Tenancy Act, 2021, aims to resolve disputes between landlords and tenants in India by establishing clear responsibilities and protections for both parties. This comprehensive law mandates written agreements, regulates security deposits, and sets limits on rent increases. It also outlines valid grounds for eviction and ensures tenant rights, including protection against unjust eviction and the right to privacy. As states begin to adopt this act, understanding its implications is crucial for both landlords and tenants.

By Narendra Chaudhary | Mar 15, 2026, 05:13 IST

Understanding the Model Tenancy Act: Key Changes for Landlords and Tenants

Introduction to the Model Tenancy Act

In India, misunderstandings and legal disputes often arise between landlords and tenants regarding rental agreements. To address these issues, the central government introduced the Model Tenancy Act (MTA), 2021, a comprehensive law designed to provide equal protection to both parties and enhance transparency in rental arrangements.

Implementation of the Model Tenancy Act

This law comes into effect only when a state decides to adopt it or amend its existing rental regulations. Several states, including Tamil Nadu, Andhra Pradesh, Assam, and Uttar Pradesh, have either implemented this model or are in the process of doing so.

What Changes with the Model Tenancy Act?

The new legislation clearly defines the responsibilities of both landlords and tenants, ensuring that tenants are not abruptly evicted and landlords are protected from property damage.

Landlord Rights and New Restrictions

1. Mandatory Written Agreements

Under the new law, rental agreements cannot be based on verbal consent. Both landlords and tenants are required to create a written rental agreement. Starting from July 1, 2025, digital stamping will be mandatory, and failure to comply may result in a fine of ₹5,000.

2. Restrictions on Security Deposits

Landlords can no longer demand arbitrary security deposits. For residential properties, the maximum security deposit allowed is equivalent to two months' rent, while rules for commercial properties may vary by state.

3. Regulations on Rent Increases

Previously, landlords could increase rent at their discretion each year. However, with the introduction of this act, arbitrary rent hikes will be restricted. Landlords will now be permitted to increase rent by 5–10% annually.

4. Grounds for Tenant Eviction

Tenants can only be evicted for valid reasons, such as failure to pay rent for two consecutive months, causing damage to the property, or violating the terms of the agreement.

Tenant Protections and Rights

Key Tenant Rights

Protection Against Unjust Eviction: Landlords cannot evict tenants without legal grounds and proper notice.

Maintenance Responsibilities: Landlords must keep the property habitable. Tenants can seek legal advice and withhold rent if necessary repairs are not made.

Right to Privacy: Landlords may only enter a tenant's home with 24 hours' notice, except in cases of inspection or repair.

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