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Quick answer: The Model Tenancy Act, 2021 is a template law approved by the Union Cabinet on 2 June 2021 for states to adopt. It requires written tenancy agreements reported to a Rent Authority, caps deposits at two months' rent for homes and six for commercial premises, sets up fast-track Rent Courts and Tribunals, and charges overstaying tenants double and then four times the rent. It only applies where a state has enacted it.
Every few months a viral post announces "new rent rules" for all of India: deposits capped, registration within 60 days, fines for landlords. Most of these posts are describing the Model Tenancy Act. Some of what they say is in the Act. Some isn't. And the part they usually leave out is the most important: rent and tenancy are on the State List of the Constitution, so a central template changes nothing in your city until your state legislature acts.
What is the Model Tenancy Act?
The Ministry of Housing and Urban Affairs released a draft in July 2019. The Union Cabinet approved the final text on 2 June 2021 and circulated it to states and union territories to adopt, either by passing a new law or amending their existing rent laws.
It had a clear aim: unlock homes that owners keep vacant because they fear tenants who won't leave (the government cited Census 2011, which counted over 1 crore vacant houses in urban India), and give tenants protection from arbitrary deposits and evictions. Old rent control laws, written for an era of scarcity, had frozen rents in some cities and made landlords wary of letting at all.
Which states have adopted it?
In a written reply to the Rajya Sabha on 25 July 2022, the Ministry said four states had revised their tenancy laws in line with the Model Act:
State
LawAndhra Pradesh | Amended tenancy law aligned with the Model Act
Assam | Assam Tenancy Act, 2021
Tamil Nadu | Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 (predates the Model Act and was a template for it)
Uttar Pradesh | Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021
Other states have announced plans or drafts since. Before relying on the Act, check whether your state has notified its own version and its rules. If you rent in Uttar Pradesh or Tamil Nadu, our state pages cover the local registration steps.
How to check whether your state has adopted it
Three quick checks will tell you where you stand:
- Search your state's gazette or legislative assembly website for a tenancy or rent Act passed after 2021. Titles vary: "Regulation of Urban Premises Tenancy", "Tenancy Act", "Rights and Responsibilities of Landlords and Tenants".
- Look for a Rent Authority. States that have adopted the model usually notify Rent Authorities district by district and often run an online portal for registering agreements, as Tamil Nadu does at tenancy.tn.gov.in.
- Ask the Sub-Registrar's office or an advocate. Local practice tells you quickly whether the new law is actually being used.
If none of these turns up a new law, your tenancy is still governed by the older rent control Act (where it applies), the Transfer of Property Act and your agreement.
Key provisions of the Model Tenancy Act
Written agreement and the Rent Authority
No tenancy can be created without a written agreement. Within two months of signing, landlord and tenant must inform the Rent Authority (a Deputy Collector-level officer) in the prescribed form, and the Authority issues a unique identification number. States are expected to run this through a digital platform in the local language.
This is the source of the "register within 60 days" claim that circulates online. It's real, but only in states that have enacted the Model Act or something like it. Tamil Nadu, for instance, requires registration with the Rent Authority within 90 days.
Security deposit cap
Premises
Maximum depositResidential | Two months' rent
Non-residential | Six months' rent
The deposit must be refunded when the tenant hands back possession, after lawful deductions. In Bengaluru, where ten months' deposit has been common, this would be a major change. For how deposits work today in states without a cap, see our security deposit rules guide.
Rent revision
Rent is revised as the agreement says. If the agreement is silent, the landlord must give the tenant three months' written notice of the new rent. The Act doesn't impose a percentage cap on increases; that was left to the market and the contract.
Repairs and maintenance
The Act splits repairs in a schedule. Structural repairs, whitewashing, painting and major plumbing go to the landlord; minor fixtures, switches and drain cleaning to the tenant. If the landlord doesn't carry out a repair within a reasonable time after notice, the tenant can do it and deduct the cost from rent. If the tenant refuses their share, the landlord can deduct it from the deposit.
Landlord's entry
The landlord may enter for inspection or repair only after giving the tenant at least 24 hours' prior written or electronic notice.
Essential supplies
The landlord can't withhold supply of water, electricity or other essential services. The Rent Authority can order restoration.
Subletting
A tenant can't sublet all or part of the premises without the landlord's written consent through a supplementary agreement.
Eviction grounds
A landlord can apply to the Rent Court for possession on grounds including:
- refusal to pay rent for two consecutive months,
- subletting without consent,
- misuse of the premises after notice,
- the landlord genuinely needing the premises for repairs or construction that can't be done with the tenant in occupation,
- the tenant holding over after the tenancy ends.
Double and four times the rent for overstaying
A tenant who doesn't vacate after the tenancy ends or is terminated must pay twice the monthly rent for the first two months, and four times the rent after that. This one clause is aimed squarely at the landlord's biggest fear.
Rent Courts and Rent Tribunals
A three-tier structure (Rent Authority, Rent Court, Rent Tribunal) replaces civil courts for tenancy disputes, with civil courts barred from hearing matters the Act covers. Rent Courts and Tribunals are expected to decide cases within 60 days.
Model Tenancy Act vs old rent control laws
The Model Act is a deliberate break from the rent control laws most states passed decades ago. The contrast explains why landlords welcomed it and why some tenant groups were wary.
What the Model Tenancy Act does not do
- It doesn't apply retrospectively. Existing tenancies continue under the old law unless the state's version says otherwise.
- It isn't a national law. Nothing in it binds a landlord in a state that hasn't adopted it.
- It doesn't cap rent increases by percentage. Posts claiming "rent can only rise 5% a year" are not quoting the Model Act.
- It doesn't cover every property. Premises owned by government, companies or religious and charitable institutions are generally excluded.
What it means for your rent agreement today
Even where your state hasn't adopted it, the Model Act is a good drafting guide. Agreements that follow its structure (clear deposit and refund terms, repair schedule, notice before entry, written consent for subletting, holding-over rent) are the ones that hold up in disputes under any law.
The rent agreement you create on Law At Ease includes these clauses, and you can adjust them before signing. For the wider set of rules that apply right now, read rent agreement rules in India and our guide to tenant rights.
Legal references
- Model Tenancy Act, 2021 (Ministry of Housing and Urban Affairs); Union Cabinet approval, 2 June 2021
- Rajya Sabha written reply on state adoption, 25 July 2022 (reported by Housing.com)
- Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017
- Uttar Pradesh Regulation of Urban Premises Tenancy Act, 2021
- Assam Tenancy Act, 2021
- Constitution of India, Seventh Schedule, List II, Entry 18
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Frequently asked questions
Marked up with FAQPage schema so answers can appear directly in search results.
What is the Model Tenancy Act 2021?
It's a template law approved by the Union Cabinet on 2 June 2021 for states and union territories to adopt. It sets rules on written agreements, deposits, rent revision, repairs, eviction and fast-track rent courts.
Is the Model Tenancy Act applicable in my state?
Only if your state has enacted it or aligned its law with it. As of the government's July 2022 reply to Parliament, Andhra Pradesh, Assam, Tamil Nadu and Uttar Pradesh had done so.
What is the maximum security deposit under the Model Tenancy Act?
Two months' rent for residential premises and six months' rent for non-residential premises.
Does the Model Tenancy Act cap rent increases?
No. Rent is revised as per the agreement. If the agreement is silent, the landlord must give three months' written notice before revising rent.
What happens if a tenant doesn't vacate after the agreement ends?
Under the Model Act, the tenant must pay twice the monthly rent for two months and four times the rent thereafter, and the landlord can seek eviction from the Rent Court.
Is registration with the Rent Authority mandatory?
In states that adopt the Model Act, both parties must inform the Rent Authority within two months of signing. Tamil Nadu's own law sets 90 days.
Can a landlord evict a tenant for not paying rent?
Yes. Under the Model Act, failure to pay rent for two consecutive months is a ground for the landlord to seek possession through the Rent Court.
Are the "new rent rules 2025" the same as the Model Tenancy Act?
Mostly, yes. Popular "new rent rules" posts largely restate Model Act provisions. They apply only where a state has enacted them.
Does the Model Tenancy Act apply to existing tenancies?
No, it's prospective. Existing tenancies continue under the earlier law unless the state's enactment provides otherwise.
How quickly are disputes decided under the Model Tenancy Act?
Rent Courts and Rent Tribunals are expected to dispose of cases within 60 days.
This article is general information, not legal advice on your specific matter. For advice on your own facts, talk to an advocate on Law At Ease.
