The Government of Karnataka has ushered in significant changes to the rental system starting from 2025. These new regulations are designed to address long-standing issues faced by tenants, such as the burden of excessive security deposits, uncontrolled rent hikes, and abrupt eviction demands. The new laws aim to create a more transparent, fair, and legally sound rental environment.
Key Changes Introduced by the Karnataka Government
The new rules focus on regulating the landlord-tenant relationship through clear, enforceable mandates:
1. Digital Agreement Registration is Mandatory
- Online Registration: All new rental agreements must be compulsorily registered online within 60 days of their execution. This move is intended to formalize the rental market and ensure legal validity for all contracts.
2. Security Deposit Capped at Five Months' Rent
- Major Relief: Under the new rental laws implemented in Karnataka in 2025, landlords are permitted to collect a maximum of only five months' worth of rent as a security deposit (deposit).
- Legal Mandate: Collecting a deposit exceeding this five-month limit is now illegal, providing significant financial relief to tenants who previously had to pay deposits stretching up to 10 or 12 months.
3. Rent Hike Control
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Regulation on Increase: Rent increases will now be strictly controlled within specified periods and percentage limits. This prevents arbitrary and sudden hikes, offering stability to tenants.
4. Protection Against Abrupt Eviction (Vasanthi Theravu Rakshane)
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Tenant Security: The new rules prevent landlords from suddenly forcing tenants to vacate the premises, providing greater security of tenure and reducing the stress of unexpected displacement.
5. Clear Rights on Maintenance and Inspection
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Defined Responsibilities: The rights of both landlords and tenants regarding property maintenance and inspection have been clearly outlined. This clarity is expected to minimize disputes over repairs and property upkeep.
A New Era of Transparency and Fairness
These regulations are expected to benefit various groups, particularly students, working professionals, and middle-class families, who often struggle with the upfront costs and unstable nature of the previous rental market.
While the restriction on security deposits may come as a "shock" to some landlords accustomed to high deposits, the government notes that these laws also offer legal protection to property owners by formalizing agreements and providing a framework for dispute resolution. The overall expectation is a reduction in rent-related conflicts and a more ethical and regulated rental ecosystem in Karnataka.
