Effective from early 2025, the government has introduced a landmark rent regulation that obliges every property owner to register the rental agreement before handing over a house to a tenant. This move aims to bring transparency to the rental market, curb illegal sub‑letting, and protect both landlords and tenants from disputes. The rule, announced in the recent press release, outlines a clear procedure, associated fees, and strict penalties for non‑compliance. In the sections that follow, we unpack the key elements of the law, the step‑by‑step registration process, its expected impact on the housing ecosystem, and what the future may hold for renters and owners alike.
Understanding the new registration requirement
The legislation classifies a rental agreement as a registered contract only when it is entered into the state’s online portal within 30 days of the tenant taking possession. Registration creates a public record that includes the landlord’s identity, property details, rent amount, and lease duration. This record can be accessed by courts, tax authorities, and prospective tenants, thereby reducing fraudulent listings and ensuring compliance with rent‑control caps where applicable.
Procedure and documentation
Landlords must follow a four‑step process:
- Create an account on the official Rent Registry Portal.
- Upload scanned copies of the property title, identity proof, and a signed agreement.
- Pay the registration fee as per the schedule below.
- Obtain a unique registration number, which must be displayed in all future communications with the tenant.
The fee structure, updated to 20 December 2025, is shown in the table.
| Property type | Annual rent | Registration fee (INR) |
|---|---|---|
| Residential | Up to ₹1 lakh | ₹500 |
| Residential | ₹1 lakh – ₹5 lakhs | ₹1,000 |
| Commercial | Any | ₹2,000 |
Impact on landlords and tenants
For landlords, the registration creates a verifiable trail that can be cited in eviction cases, potentially reducing litigation costs. However, the added administrative step and fee may deter informal rentals, pushing some owners to seek professional property‑management services.
For tenants, the law offers greater security. A registered lease can be used as proof of residence for utility connections, bank accounts, and school admissions. Moreover, the public record helps tenants verify that the landlord actually holds title to the property.
Enforcement and penalties
The state’s housing department will conduct random audits. Unregistered rentals discovered after the 30‑day window will attract a fine of twice the registration fee, plus a possible suspension of the landlord’s ability to list new properties on official portals. Persistent violators may face criminal prosecution under the Housing Act, 2025.
Future outlook
Analysts predict that the registration mandate will gradually professionalise the rental market, encouraging the emergence of digital platforms that streamline compliance. In the medium term, the data generated could inform policy adjustments, such as region‑specific rent caps or incentives for affordable housing. Stakeholders are urged to adapt quickly, as the benefits of a transparent, accountable rental ecosystem are expected to outweigh the short‑term adjustment costs.
Conclusion
The new rent‑registration law marks a decisive step toward a more regulated and trustworthy housing market. By mandating a simple online filing, the government aims to protect both landlords and tenants, curb illegal sub‑letting, and lay the groundwork for data‑driven policy. While the initial compliance burden may pose challenges, the long‑term gains—reduced disputes, clearer tenant rights, and a more professional rental sector—are poised to reshape India’s real‑estate landscape.
Image by: Alena Darmel
https://www.pexels.com/@a-darmel
