Rental Agreements in India: What MTA-2021 Means for Tenants & Landlords
By Mypropey Editorial Team · 7 min read · 2026-01-15
The Model Tenancy Act 2021 (MTA-2021) standardises residential and commercial tenancies across India. Here's what you need to know before signing.
Security deposit caps
Under MTA-2021, residential security deposits are capped at 2 months' rent. Commercial deposits are capped at 6 months' rent.
Mypropey holds the deposit in escrow so neither side can withhold it unfairly at move-out.
Notice periods
Either party can terminate with notice as agreed in the rent agreement — typically 1 month for residential leases.
FAQs
Is the Model Tenancy Act 2021 mandatory across India?
MTA-2021 is a model law that each state must adopt. Several states have already notified their own tenancy acts based on it.
What is the maximum security deposit a landlord can ask for?
Under MTA-2021, two months' rent for residential and six months' rent for commercial tenancies.