Gujarat Rent Bill 2026 Passed Unanimously: Written Agreements Mandatory, Security Deposit Capped At 3 Months
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Summarized by AI; it may make mistakes. Check important info
The Gujarat Legislative Assembly has unanimously passed the Gujarat Rent Bill, 2026, replacing the decades-old Bombay Rents, Hotel and Lodging House Rates Control Act, 1947, with a new framework aimed at bringing greater transparency and order to landlord-tenant relationships.
Urban Development Minister Kanubhai Desai introduced the Bill in the Assembly. The legislation makes written rental agreements mandatory for residential and commercial properties and provides a three-tier mechanism for resolving rent-related disputes.
Written Rental Agreement And Unique ID Mandatory
Under the new law, residential and commercial properties cannot be rented out without a written rental agreement.
The Rent Authority will develop a digital platform within three months. Every rental agreement will have to be uploaded on the platform and assigned a unique identification number.
Security Deposit Capped At Three Months' Rent
The Bill caps the security deposit at an amount equivalent to three months' rent.
After the tenant vacates the property and all accounts are settled, the landlord will have to return the security deposit within one month.
Three-Tier System For Rent Disputes
The legislation establishes a three-tier mechanism comprising:
- Rent Authority
- Rent Court
- Rent Tribunal
The system is intended to provide a faster mechanism for resolving disputes between landlords and tenants.
Landlords Cannot Cut Essential Services
The Bill bars landlords from withholding essential services such as electricity, water and gas from tenants.
Grounds For Eviction
Under Section 21, landlords can approach the Rent Court seeking eviction in cases including persistent non-payment of rent, damage to the property or unauthorised subletting.
Relief If Property Becomes Uninhabitable
The Bill also provides relief to tenants if a rented property becomes uninhabitable because of natural disasters such as floods, earthquakes or cyclones.
In such circumstances, the tenant can be entitled to a rent waiver or an extension of the lease agreement.
Property Managers Allowed
Under Section 18, landlords can appoint a property manager within the legal framework to handle matters relating to the rented property.
Certain Properties Exempt
Section 3 exempts government premises, service quarters and properties owned by religious or charitable institutions, Waqf Boards and public trusts from the legislation.
However, such properties can come under the Act if both parties mutually agree to do so.
Government Says Law Meets Modern Requirements
Desai said the new legislation has been drafted to address modern requirements and resolve legal complexities associated with the old rent-control framework.
The government said the new law would improve transparency in the rental and real estate sector and provide a clearer legal framework for both landlords and tenants.
The Bill was passed by the Gujarat Assembly without opposition.
