What is the rental housing policy in India?

India's rental housing policy refers to the framework of laws, schemes, and guidelines that govern the renting of residential properties, the rights of landlords and tenants, and the expansion of the formal rental housing market.

Model Tenancy Act, 2021

• Introduced to replace outdated Rent Control Acts that discouraged landlords from renting out properties.
• Establishes Rent Authority, Rent Courts, and Rent Tribunals for dispute resolution.
• Mandates written tenancy agreements registered with Rent Authority.
• Caps security deposit at 2 months' rent for residential and 6 months for commercial.
• States can adopt and customise the Act — adoption still patchy across states.

Affordable Rental Housing Complexes (ARHC)

• Launched under PMAY-U to provide affordable rental accommodation for urban migrants and industrial workers.
• Uses vacant government housing stock converted into managed rental units.
• Private developers can also build new ARHCs with government support.
• Target group: EWS workers migrating to cities for work.
• Long-term lease model at subsidised rents managed by government agencies or PPP operators.

India's rental housing policy is at a critical inflection point. The Model Tenancy Act and ARHC scheme lay the groundwork, but large-scale adoption, formalisation of the sector, and institutional investment are needed to bridge the massive urban rental housing gap.