Back to Articles
Legal

Understanding RERA Rules for Tenants and Landlords in Pune: The Complete 2025 Guide

Jaankumar
Dec 24, 2024
10 min read
Person signing a real estate contract with pen, representing RERA rules and legal guidelines

Understanding RERA Rules for Tenants and Landlords in Pune: The Complete 2025 Guide

The rental scene in India, and particularly in a bustling metropolitan hub like Pune, has undergone a seismic shift in the last decade. Gone are the days of informal verbal agreements and cash transactions. With the introduction of the Real Estate (Regulation and Development) Act, 2016 (RERA), and the subsequent push for the Model Tenancy Act (MTA), the relationship between landlords and tenants is now governed by a robust legal framework. For Pune—a city that hosts lakhs of students and IT professionals—understanding these rules isn't just "good to know"; it's a necessity to safeguard your financial and legal interests.

Whether you're a techie moving to Hinjewadi for your first job, a family relocating to Kothrud, or a property owner in Viman Nagar looking to monetize your asset, this guide covers every nook and cranny of the rental laws in Maharashtra. We move beyond the basics to explore the practical realities of renting in Pune, dispute resolution mechanisms, and the future of tenancy laws.

1. The Key Laws: RERA, MTA, and the Rent Control Act

To navigate the rental market, you must first understand the laws that govern it. There is often confusion between RERA and the Rent Control Act. Let's clarify.

RERA (Real Estate Regulatory Authority)

Primarily designed to protect home buyers from unscrupulous developers, RERA's direct impact on rentals is limited but significant in specific contexts. RERA make sures that the property being rented out is legal and has all necessary approvals. For instance, you can't legally rent out a flat in a project that doesn't have an Occupancy Certificate (OC), and RERA status helps verify this.

Maharashtra Rent Control Act, 1999

This is the primary legislation governing rentals in Maharashtra. It controls rent pricing (in older buildings), eviction rules, and the rights of landlords to recover possession. But, it was often criticized for being pro-tenant and discouraging property owners from renting out their homes due to fear of squatting.

Model Tenancy Act (MTA), 2021

Proposed by the central government, the MTA aims to overhaul the rental market by balancing the interests of both parties. Maharashtra is in the process of adopting key provisions of the MTA, which will likely replace or amend the old Rent Control Act. The MTA introduces rent authorities, caps security deposits, and legalizes digital agreements.

2. For Landlords: Protecting Your Asset and Income

Owning a property in Pune is a great investment, with rental yields in areas like Kharadi and Wakad hovering around 3-4%. But, a bad tenant can turn this asset into a liability. Here is your landlord's playbook.

The Iron-Clad Rental Agreement

The foundation of a trouble-free tenancy is a registered Leave and License Agreement. In Maharashtra, a notarized agreement is not legally binding for rental disputes in the same way a registered one is.
Key Clauses to Include:

  • Lock-in Period: Specify a period (e.g., 6 months) during which the tenant can't vacate without penalty.
  • Escalation Clause: Clearly state the percentage increase in rent upon renewal (typically 5-10% in Pune).
  • Maintenance Charges: Who pays the society maintenance? Usually, it's the landlord, but if it's the tenant, put it in writing.
  • Usage Policy: Explicitly forbid subletting or using the residential premises for commercial activity.

Police Verification: It's Mandatory

In Pune, police verification of tenants is mandatory under Section 144 of the CrPC. Failure to do so can lead to a fine or even imprisonment under Section 188 of the IPC. Fortunately, the Pune Police has made this process online. You simply need to upload the tenant's details and ID proof on the Pune Police Citizen Portal.

Right to Eviction

Under the new rules, you can evict a tenant on specific grounds:
1. Non-payment of rent for two consecutive months.
2. Subletting without consent.
3. Misuse of property or causing structural damage.
4. If the landlord needs the premises for their own bona fide use (though this is harder to prove and requires legal notice).

3. For Tenants: Know Your Rights and Don't Get Bullied

Pune is a tenant-friendly city, but awareness is key. You are paying for a service (housing), and you have consumer rights.

The Security Deposit Myth

Scenario: You pay a deposit of ₹50,000. When you leave, the landlord deducts ₹20,000 for "painting and cleaning." Is this legal?
The Law: The Model Tenancy Act proposes capping security deposits at 2 months' rent for residential properties. As for deductions, "normal wear and tear" (fading paint, minor scuffs) can't be deducted. Only "damage" (broken tiles, holes in walls, broken fixtures) is chargeable. Always take photos of the flat before moving in and before moving out to have evidence.

Right to Privacy and Peaceful Possession

Just because they own the house doesn't mean they can barge in anytime. The law respects your privacy. A landlord must give 24 hours' notice before visiting the premises for inspection or repairs. They can't come at odd hours (late night) or harass you.

Essential Services are Sacrosanct

A landlord can't cut off your electricity, water, or lift access to force you to pay rent or vacate. This is a criminal offense. If this happens, you can approach the local police station or the Rent Controller immediately.

4. The Registration Process in Pune: A Step-by-Step Guide

Registering your Leave and License agreement is the single most important step for both parties. Here is how it works in Pune:

Step 1: Draft the Agreement. Use a standard government-approved format or hire a lawyer to draft a custom one. Make sure all terms (rent, deposit, tenure, clauses) are accurate.

Step 2: Biometric Verification. You don't always need to go to the sub-registrar's office. Many authorized service providers in Pune offer "doorstep service" where they bring a biometric device to your home/office to capture fingerprints and photos of the landlord, tenant, and two witnesses.

Step 3: Payment of Stamp Duty and Registration Fees.
Stamp Duty: 0.25% of the total rent for the period + non-refundable deposit.
Registration Fee: ₹1,000 for properties in municipal limits.

Step 4: Approval. Once the data is uploaded to the IGR (Inspector General of Registration) Maharashtra website, it typically takes 2-3 working days to get the registered document via email.

5. Dispute Resolution: The Rent Court Authority

One of the biggest changes proposed by the MTA is the establishment of a Rent Court and Rent Tribunal to hear civil cases. This removes rental disputes from the burden of regular civil courts, which can take decades to decide.

How it Works:

  • Timeline: The Rent Court is mandated to resolve disputes within 60 days.
  • Jurisdiction: Civil courts will no longer have jurisdiction over rental matters, ensuring specialized attention.
  • Appeal: If unhappy with the Rent Court's order, you can appeal to the Rent Tribunal, but you generally have to deposit 50% of the disputed amount first to prevent frivolous appeals.

6. NRI Landlords: A Special Case

Pune has a significant number of NRI (Non-Resident Indian) investors who rent out their apartments. For NRIs:

  • Power of Attorney (PoA): You must issue a specific PoA to a local relative or friend to handle the registration and legal matters.
  • TDS on Rent: If the tenant pays rent exceeding ₹50,000/month to an NRI, the tenant is required to deduct TDS (Tax Deducted at Source) at 31.2% (30% + cess) and deposit it with the government. Failure to do so falls on the tenant!
  • Repatriation: Rental income can be repatriated abroad, subject to payment of taxes in India.

7. Case Studies: Learning from Others' Mistakes

Case Study A: The "Friendly" Verbal Agreement

Situation: Amit rented a flat in Baner from his friend's uncle. They didn't register an agreement to "save money." After 6 months, the uncle asked Amit to vacate in 1 week because his son was returning from the US.
Outcome: Amit had no legal standing. He had to vacate. Had he had a registered agreement, he would have been protected for the agreed tenure (usually 11 months).

Case Study B: The Withheld Deposit

Situation: Sarah moved out of her flat in Koregaon Park. The landlord refused to return her ₹1 Lakh deposit, citing "the flat needs painting." Sarah had photos from her move-in date showing the walls were already scuffed.
Outcome: Sarah sent a legal notice attaching the "before" and "after" photos. The landlord, realizing he would lose in Consumer Court/Rent Authority, returned the deposit minus a small cleaning fee.

8. Checklist for a Smooth Tenancy

For Landlords:

  • [ ] Verify tenant's employment and permanent address.
  • [ ] Complete Police Verification online.
  • [ ] Register the Leave and License Agreement.
  • [ ] Take a security deposit (preferably via bank transfer, not cash).

For Tenants:

  • [ ] Check if the landlord is the actual owner (ask for an electricity bill or property tax receipt).
  • [ ] Read the agreement for "hidden" charges (maintenance, clubhouse fees).
  • [ ] Inspect the house for water pressure, electrical points, and seepage.
  • [ ] Get receipts for the security deposit and monthly rent.

9. How to File a RERA Complaint

If you're a tenant in a new building and the amenities promised (gym, pool) aren't functional, you might have recourse under RERA if the project is still under development.
Step 1: Go to the MahaRERA website (maharera.mahaonline.gov.in).
Step 2: Create a user account and click on "New Complaint".
Step 3: Fill in the details of the project and the nature of the violation.
Step 4: Pay the fee (₹5,000) online.
Step 5: Attend the hearing (now mostly online) and present your case.

10. Drafting a Bulletproof Agreement

Don't rely on the "copy-paste" format from the internet. Make sure these specific clauses are present:
1. Force Majeure: What happens if there is another lockdown? Can you delay rent?
2. Sale Clause: If the landlord sells the flat, the new owner must honor the existing lease until it expires.
3. Notice Period: Usually 1 month. Make sure it's mutual.

11. RERA for Redevelopment Projects: A Pune Special

Pune is witnessing a redevelopment boom, especially in old areas like Deccan, Kothrud, and Sadashiv Peth. If you're a tenant in a building undergoing redevelopment, or a landlord negotiating with a builder, RERA has specific protections.

For Tenants of Old Buildings:

Alternate Accommodation: The developer must provide alternate accommodation or rent compensation to existing tenants during the construction period.
Agreement: A "Permanent Alternate Accommodation Agreement" (PAAA) must be signed and registered. This guarantees your right to a flat in the new building.

For Landlords (Society Members):

Consent: 51% consent is now sufficient for redevelopment (down from 70%), accelerating the process.
Bank Guarantee: RERA mandates that the developer provides a bank guarantee of 20% of the project cost to make sure they don't abandon the project halfway.

12. The Role of a RERA Conciliator

Litigation is expensive and time-consuming. MahaRERA has introduced a unique "Conciliation Forum" to resolve disputes amicably.

What is it? A panel comprising representatives from consumer bodies (like Grahak Panchayat) and developer bodies (like CREDAI) who act as mediators.
Success Rate: Over 80% of cases referred to conciliation are resolved without going to court.
Cost: It is practically free compared to legal fees.
Process: If you have a dispute about possession delay or defects, apply for conciliation first. It saves years of mental trauma.

13. RERA FAQs

Common questions from Pune tenants and landlords:
Q: Can a landlord increase rent arbitrarily? No. It must follow the agreement terms (usually 5-10% annually).
Q: Is the broker entitled to 1 month's brokerage on renewal? Not legally, unless specified in the original agreement. Most renewals are done directly.
Q: Can a bachelor be denied a flat? Legally, a society can't discriminate based on marital status, but in practice, many societies in Pune have "Family Only" by-laws. RERA does not explicitly ban this yet.

Conclusion

Renting a home in Pune doesn't have to be a battleground. The laws—RERA, the Rent Control Act, and the upcoming MTA—are designed to create a fair ecosystem. For landlords, the key is proper documentation and vetting. For tenants, it's awareness and assertiveness. By following the rules and maintaining clear, written communication, both parties can enjoy a mutually beneficial relationship. Whether you're providing a home or building one, remember: a signed, registered paper is worth more than a thousand words of promise.

Share this article