Trying to mitigate landlord-tenant conflicts in K'taka

The relationship between house owners and tenants has traditionally been one that is reminiscent of a saas-bahu drama. Movies and plays often depict landlords as control freaks. They tend to restrict visitors. They barge into the house without notice, and some are even inquisitive about the food choices of their tenants. Dirty dishes stacked in the kitchen sink annoy them. So do pets, girlfriends, and plants. A lot of tenants in Bengaluru find such scenes relatable. Despite all these, a reality check could make you more empathetic towards your landlord. Tenants sometimes damage property. They engage in late-night partying and drinking that ruin the landlord’s reputation in the society. Some even conveniently forget to pay the rent. How can landlords stop worrying?

Karnataka govt is trying to bring new rules that could bring some order into this relationship. The Karnataka Rent Control Act 1999 is being modernised with elements drawn from The Model Tenancy Act, 2021 and Home Rent Rules 2025, both of which are regulations that are being implemented across India, superseding previous practices.




Under the Karnataka Rent (Amendment) Act 2025, illegal eviction of tenants by landlords could attract hefty fines. It is being proposed that tenants pay just two months’ rent as security deposit. Bengaluru has had a tradition of collecting 10 months’ rent as deposit, though many house owners now don’t demand that much. Still, with rentals having risen dramatically, deposits have become a big burden. The problem is compounded by house owners who refuse to return any part of the deposit, especially to students. The new rules, if implemented, will provide relief to tenants.

The amendments also aim to decriminalise rental disputes and impose heavy penalties on unfair practices. Tenants subletting property could be fined Rs 50,000.

Tenants have reasons to rejoice

“The implications to Bengaluru's rental market are considerable as the Act only allows rent increases once a year with 90 days' notice, besides limiting security deposits,” says Ashish Sharma, director & city head - Bengaluru at property consultancy Anarock Group. “These changes protect tenants more while also making things clearer for landlords by allowing Rent Tribunals to settle disputes more quickly, within 60 days,” he adds.

The intent, of course, is progressive. But Samir Arora, president and chairman of Confederation of Real Estate Associates of India (CREA-I) has a word of caution. “The amendment must avoid over-regulation,” he says. “Policy should be a bridge, not a barrier – the right amendment can make rentals Karnataka’s next growth engine. The state needs a rental environment that protects tenants without discouraging private investments. Investments in flats and villas benefit not just property owners but also the state, by fuelling urban growth,” says Arora, who is also the founder of Huts Global, a real estate advisory and marketing company based out of Bengaluru.

Akanksha Vyas, a real estate agent in the city, says landlords seek 10 months’ rent as security because rent control limits annual increases and delays eviction processes. The higher deposit protects against defaults, property damage, and long vacancy cycles, ensuring financial safety in a system where recovery of dues is slow and uncertain. Landlords, she says, face delayed payments, difficult evictions, and uncertainty in recovering dues, while tenants deal with steep deposits, arbitrary rent hikes, and limited legal clarity. “Both sides struggle with outdated laws, slow dispute resolution, and a trust deficit in rental relationships. Replacing imprisonment with penalties is pragmatic. Criminalising landlord-tenant disputes often escalated tensions without improving compliance. Monetary penalties create accountability while keeping disagreements civil, encouraging more people to enter the rental market and reducing fear-driven litigation. It’s a balanced, modern approach,” she says.

Sharma believes more changes are needed to develop affordable rental housing. He says there should be tax breaks for properties below a certain threshold. “Fixing infrastructure problems in outlying areas and encouraging co-living models could increase the number of rental units available. Also, creating standard rental valuation frameworks that take into account market conditions and running more awareness campaigns would help create a healthier, more open rental ecosystem that benefits everyone involved,” he says.

VOICE BOX

These amendments are long overdue. I’m glad action is finally being taken...

.A lot of students like me had to fight really hard to get our security deposits back. I used to stay in an independent house near St Joseph’s University, along with a friend. We had paid a security deposit of Rs 1 Lakh, and the landlord was supposed to return us Rs 78,000 after all deductions. Initially, we felt helpless as he refused to return it. But we followed it up with him relentlessly. We also took help from parents and locals, and finally, he returned Rs 76,000 several months after we vacated the place.

Namitha Susan Philip, 21, STUDENT

The Jan Vishwas (Amendment of Provisions) Act, 2023 (Central Act 18 of 2023), has been enacted by the govt of India with the objective of improving ease of living and ease of doing business by rationalising offences and penalties across various Central laws.

The Act seeks to replace imprisonment provisions with monetary penalties wherever feasible, enhance transparency, and reduce compliance burden on citizens. In order to bring the Karnataka Rent Act, 1999 (Karnataka Act 34 of 2001), in harmony with the reform principles envisaged under the Jan Vishwas Act, 2023, it has become necessary to rationalise the penalties prescribed under the Act. Several provisions of the Karnataka Rent Act currently contain penal clauses which require revision to ensure proportionality, certainty, and alignment with the national framework. Accordingly, the govt of Karnataka proposes to enact the Karnataka Rent Control (Amendment) Act, 2025.

Rajender Kataria, PRINCIPAL SECRETARY, REVENUE DEPT, KARNATAKA GOVT

For years, rental policies have lagged behind the pace of urbanisation. This amendment can modernise how Bengaluru lives, provided implementation is simple and enforcement is swift.

The proposed amendment to the Karnataka Rent Control Act is a step toward unlocking supply in the rental market. By giving landlords more confidence and tenants clearer frameworks, the ecosystem becomes more transparent and investable. A balanced rental law doesn’t tilt the scale – it lets the rental market finally stand on its own feet.

Samir Arora, CHAIRMAN & PRESIDENT, CONFEDERATION OF REAL ESTATE ASSOCIATES OF INDIA (CREA-I)

There’s a lot of noise right now about ‘new’ tenancy rules, but the truth is that nothing new has actually come into effect.

The Centre did release fresh guidelines in 2025, but they’re essentially the same principles we first saw in the Model Tenancy Act back in 2021. And because tenancy is a State subject, these Central guidelines don’t automatically become law. They only matter when a State chooses to adopt them. Some States like Tamil Nadu, Andhra Pradesh, Uttar Pradesh and Assam have already moved ahead, but Karnataka hasn’t. So, Bengaluru is still operating under the old framework, with only small tweaks that don’t address the real issues, like high security deposits or lack of standardisation. When Karnataka eventually adopts the Act, it will be genuinely positive for the rental market, but until then, nothing actually changes.

Saurabh Garg, CO-FOUNDER & CHIEF BUSINESS OFFICER, NOBROKER

I live in a 2BHK. Now that I’m planning to move again, the thought of arranging security deposit all over again is stressful.

The proposal to reduce the security deposit to just two months’ rent feels like a huge relief. I’ve also seen many of my friends struggle to get their full deposit back after vacating. In one case, my friend got only a small part returned, with most of it deducted without clear reasons. This is a very common issue for tenants in Bangalore. The rule that landlords cannot evict tenants without proper notice is also very reassuring.

Under the new Rent Rules, 2025, a tenant who undertakes essential repair work-such as rectification of structural defects or replacement of original fixtures - may claim reimbursement from the landlord upon submission of proper bills and valid supporting invoices. This entitlement does not extend to minor or routine maintenance expenses arising from usage, wear and tear, or day-to-day upkeep, which remain the tenant's responsibility. The revised framework, by clearly delineating the obligations of both landlord and tenant, is a welcome reform and is expected to substantially reduce disputes.

Sujatha G, GOVERNING COUNCIL MEMBER, BANGALORE APARTMENTS’ FEDERATION (BAF) AND PAST PRESIDENT, KARNATAKA STATE CHARTERED ACCOUNTANT ASSOCIATION (KSCAA)

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