In short
The Model Tenancy Act (MTA) is a central template, not a law that applies to your tenancy. The draft circulated in 2020 says it is meant to be enacted by each State or Union territory as its own “(Name of State/Union territory) Tenancy Act”, coming into force on a date that state notifies. It applies prospectively only. Its best-known features are a written agreement reported to a Rent Authority within two months, and a security deposit capped at two months’ rent for homes. Whether any of this binds you depends on whether your state has enacted it.
What the MTA is, and what it is not
I could not open the final text of June 2021 on the housing ministry’s site, so this guide rests on two official texts I did read: the background note and draft Model Tenancy Act, 2020 circulated for comment (comments requested by 31 October 2020), and a real adoption by a Union territory, the Dadra and Nagar Haveli and Daman and Diu Tenancy Regulation, 2023. Where the final model differs from the draft, read the final text on the ministry’s website.
The background note explains the aim: to balance the interests of landlords and tenants, create “an accountable and transparent ecosystem for renting the premises”, and to bring vacant premises into the rental market. It adds that state rental laws “discourage renting”, and that the MTA is to be applied “prospectively”, while “existing tenancies shall continue to be governed by the respective extant rental laws of the States/UTs”.
What the text provides
From the note’s list of salient features and the draft’s articles:
- Written agreement. After commencement, no premises are to be rented “except by an agreement in writing”. Landlord and tenant jointly inform the Rent Authority within two months (draft clause 4); if they do not, each informs separately within a further month.
- Scope. Residential and commercial tenancies, in urban and rural areas, with no monetary threshold.
- Rent. Fixed by mutual agreement; revision follows the agreement (clause 9), with the Rent Authority deciding in a dispute (clause 10).
- Security deposit. Agreed in the tenancy agreement but not above two months’ rent for residential premises and six months’ for non-residential premises; refunded on the day the landlord takes vacant possession, “after making due deduction of any liability of the tenant” (clause 11).
- Subletting. Not allowed without a supplementary agreement.
- Holding over. A landlord is entitled to double the monthly rent for the first two months, and four times the monthly rent after that, if a tenant does not vacate after the tenancy ends.
- Disputes. A fast-track quasi-judicial mechanism: Rent Authority, Rent Court, Rent Tribunal.
See security deposit and rent rules for how these caps compare with other texts.
How a state or territory applies it
Adoption is by the state: the draft’s commencement clause says the Act comes into force “on such date as the State Government/Union territory Administration may, by notification”. I found no official list of adopting states that I could open on 14 October 2026, so I name none. To find out, search your state legislature’s or housing department’s website for a “Tenancy Act” enacted after 2021.
The 2023 Regulation for Dadra and Nagar Haveli and Daman and Diu shows what adoption looks like. Section 4(1) copies the two-month reporting rule; section 11(1) copies the deposit caps of two and six months; section 11(2) copies the refund rule. It also adds something the draft lacked: under section 4(2), a tenancy “exceeding eleven months” must be registered under the Registration Act, 1908. A state can therefore keep, drop or add to the model. Read the state’s own Act.
If your state has not adopted it
Your tenancy is then governed by the existing state rent law. For example, the Maharashtra Rent Control Act, 1999 (the text I read) requires a written, registered agreement for any leave and licence or letting (section 55), makes it lawful for a landlord to receive a premium or deposit on the grant of a lease (section 56), and requires a written receipt for any amount a landlord receives (section 31). That is not the MTA’s scheme. For stamp duty and registration, see rent agreement registration.
What it costs
The MTA text sets no fee that I read. Costs depend on the state: stamp duty, registration fees and any fee of the Rent Authority.
Which professional to consult
A property lawyer (advocate) enrolled with the State Bar Council can tell you whether your state has adopted the MTA or kept an older law, and which forum hears disputes. The local office that handles rent matters (Rent Authority, Rent Controller or the civil court, depending on the state) can say how to file a tenancy.
Frequently asked questions
Is the Model Tenancy Act in force across India?
No. It is a model for states and territories to enact. The draft I read leaves the commencement date to the state.
Does it cap my security deposit at two months?
Only if your state has enacted that rule. In the draft MTA and in the 2023 Regulation I read, the cap is two months’ rent for residential premises.
Does it change my existing tenancy?
The background note says the MTA applies prospectively and that existing tenancies stay under the old state law.
Do I have to register with a Rent Authority?
Only if your state has created one. Under the draft, the landlord and tenant jointly inform the Rent Authority within two months of the agreement.
Where is the final text?
On the housing ministry’s website. I could not open the final text of June 2021, so I describe the 2020 draft and flag it as a draft.
More guides on renting
Sources
- Background note on the Model Tenancy Act and draft Model Tenancy Act, 2020 (government-hosted copy) (consulted 14 October 2026)
- Dadra and Nagar Haveli and Daman and Diu Tenancy Regulation, 2023 (Gazette of India) (consulted 14 October 2026)
- The Maharashtra Rent Control Act, 1999 (Government of Maharashtra) (consulted 14 October 2026)