Tamil Nadu Rent Act 2017: Rental Agreement Rules for Owners

Short answer: Renting in Tamil Nadu is governed by the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017, often called the Tamil Nadu Rent Act. It applies to homes and shops in towns and villages. Every tenancy must be a written agreement registered online with the Rent Authority within 90 days, including 11-month agreements. The deposit is limited to three months' rent unless the agreement says otherwise. Since June 2022, a landlord can no longer evict a tenant just because they want to use the property themselves.

This guide is for owners letting a house, flat, shop, office or godown in Tamil Nadu. It was checked against the Act and every amendment up to 2022 as published in the Tamil Nadu Government Gazette, the Rules, the Rent Authority's FAQ and the Registration Department's fee table in October 2026. It is general information, not legal advice for your own tenancy.

Which law applies

• The Act: Tamil Nadu Act 42 of 2017 came into force on 22 February 2019 (G.O. Ms. No. 35). It replaced the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960, so "fair rent" under the old Act no longer applies to new tenancies.
• Where: it applies in all corporations, municipalities, town panchayats and cantonments, and since 4 February 2021 in all villages as well (G.O. (Ms) No. 28).
• What it covers: any building or part of a building let for living in or for business, so homes, flats, shops, offices and commercial godowns.
• What it does not cover: premises registered under the Factories Act, premises let for educational use (removed in 2022), and hotels, lodges and inns. Section 3 also excludes premises of the government and its bodies, some religious and charitable institutions, Waqf and registered trusts, and staff quarters given to employees.
• Amendments: the Act was amended in 2018, 2019, 2020 and, most recently, by Act 19 of 2022, in force from 10 June 2022. Many guides online still describe the 2017 text.

The rental agreement must be in writing

No one may let or take premises on rent except by a written agreement (section 4(1), as amended in 2018). This applies even where other law would allow an oral monthly let. Calling it a "licence" or "leave and licence" makes no difference if it gives the tenant a right in the property (Rent Authority FAQ). The agreement should state:

• the names and addresses of the landlord and the tenant;
• the premises, the date the tenant gets possession and the term;
• the rent, when it is paid, and how and when it will be revised;
• the security deposit;
• other charges, such as electricity, water and maintenance, and any furniture provided;
• the notice period for ending the tenancy, and any extra reasons you may enter the premises.

If the agreement does not say otherwise, interest on late rent is 8% a year (Rule 7).

Registering the agreement with the Rent Authority

Every tenancy agreement must be registered with the Rent Authority, a Deputy Collector-rank officer in each district (usually the Sub Collector or RDO):

• When: within 90 days of signing it.
• Any term: this covers every agreement, whatever its length, so 11-month and 6-month agreements too. A renewal counts as a new agreement and must be registered again.
• How: apply online at tenancy.tn.gov.in, as landlord, tenant or an appointed property manager, with the landlord's and tenant's details, the premises, the term and the rent. The Rent Authority then asks you to present the original agreement, a copy of your title deed or patta, and the original ID proofs.
• The result: it must register the agreement within 30 days and gives a Tenancy Registration Number (T.R. No.). You download a digitally signed certificate.
• Cost: there is no government fee; the online service charges ₹100.
• The tenant's copy: give the tenant one original of the signed, registered agreement within 15 days of registration.
• When it ends: when the tenancy ends, landlord and tenant tell the Rent Authority on Form II within 15 days.

If you do not register: an unregistered agreement does not affect the property and cannot be used as evidence (section 4-A), and the Rent Court decides only on agreements filed with it (section 40(2)). There is no fine, but an unregistered owner may struggle to use the Rent Court to recover rent or the premises. Registration costs ₹100, so register every agreement.

Stamp duty, the Sub-Registrar and the 11-month agreement

There are two separate registrations, and doing one does not replace the other:

That is why 11-month agreements are common: a term under one year does not have to be registered at the Sub-Registrar. It still has to be registered with the Rent Authority and stamped.

Stamp duty is due on every rental agreement under Article 35 of the Indian Stamp Act as it applies in Tamil Nadu. For a term below 30 years it is 1% of the total rent for the whole term, plus any premium, fine or advance. Since 3 May 2024 the security deposit also counts, whether or not it is refundable (Act 13 of 2024). Longer leases pay 4% (30 to 99 years) or 7% (above 99 years).

Example: an 11-month agreement at ₹15,000 a month with a ₹45,000 deposit: 1,65,000 + 45,000 = ₹2,10,000, so the stamp duty is ₹2,100.

Stamp paper is sold by licensed stamp vendors, and denominations of ₹10,000 and above also at Sub-Treasuries (Treasuries and Accounts). The 2020-21 budget speech announced a cut to 0.25% for residential rental agreements of up to five years, but the Registration Department's current table still shows 1%, so check at the Sub-Registrar's office before you rely on the lower rate.

The security deposit

The Act's words are: "Save an agreement to the contrary, it shall be unlawful to charge a security deposit in excess of three times the monthly rent" (section 11(1)).

• The limit: three months' rent, unless the written agreement fixes a different amount.
• Homes and shops: the rule is the same for both. The "two months for a home, six months for a shop" figures often quoted online come from the central Model Tenancy Act, 2021, not from Tamil Nadu law.
• The refund: it is due when you take back the vacant premises, minus anything the tenant owes. Older guides still say "within one month"; that changed in 2018.
• Disaster: if a disaster makes the premises uninhabitable and the tenant leaves, the deposit and any advance rent are refunded within 15 days of the notice period ending.

Rent, increases and receipts

• The rent: for a new tenancy it is whatever the agreement says. There is no government-fixed rent.
• Increases: rent is revised as the agreement sets out. If it is silent, give three months' written notice before a revised rent becomes due. In a fixed-term tenancy, rent cannot be raised during the term unless the agreement states the increase or how to work it out. The Act sets no percentage cap.
• Receipts: give a signed written receipt for every payment. For a bank or UPI payment, the bank acknowledgement is proof (section 13(2)).
• Refused rent: if a landlord refuses rent for two months running, the tenant may deposit it with the Rent Authority.

Repairs, entry and services

The Second Schedule of the Act splits repairs:

• The landlord: structural repairs, whitewashing and painting doors and windows, plumbing pipes, and the electrical wiring.
• The tenant: taps, drains, toilets, washbasins, the geyser, switches and sockets, small electrical items, kitchen fixtures, locks, fly nets, glass panes, and the garden.
• If the landlord will not repair: the tenant can have the work done and deduct it from the rent, up to half of one month's rent.
• If the tenant will not: the landlord can do it and the tenant pays within a month of notice.
• Entry: you may enter for repairs, an inspection or a reason stated in the agreement, after at least 24 hours' notice in writing or electronically (since 2022). Visits must be between 7 am and 8 pm.
• Services: neither side may cut off water, electricity or other essential services. The penalty is up to ₹5,000.

Sub-letting and a tenant's death

• Sub-letting: since June 2022, a tenant can sub-let or assign the tenancy only by a supplementary agreement to the main agreement. The landlord and tenant must jointly tell the Rent Authority within two months, on Form III (section 7).
• Without your consent: a tenant who hands over possession without your written consent can be evicted.
• A tenant's death: if the tenant dies, the tenancy passes for the rest of the term to the spouse, then children or a widowed daughter-in-law, then parents, provided they lived or worked there.

Ending a tenancy and eviction

During the tenancy, a tenant can be evicted only by an order of the Rent Court, on one of these grounds (section 21(2), as amended in 2022):

• rent and charges for two months unpaid within one month of a written demand. The tenant can avoid eviction once by paying all arrears with interest within that month;
• handing over possession of any part without your written consent;
• continued misuse after notice, such as encroachment, nuisance, damage or illegal use;
• repairs, rebuilding or demolition that cannot be done with the tenant inside, or works needed after a change in land use;
• the tenant gave notice to quit and you acted on it, for example by agreeing to sell;
• refusing to pay the rent payable under the Act (added in 2022);
• a structural change or permanent structure without your written consent (added in 2022).

Own use is no longer a ground. The 2022 amendment removed the landlord's need to occupy the premises personally or for family. Only the legal heirs of a landlord who has died can apply for possession on a genuine need. Many websites, and some AI answers, still list own use.

When the term ends:

• Staying on: if the tenant stays on and you have not asked for possession, the tenancy continues month to month on the same terms for up to six months.
• Double rent: once the tenancy has been ended by order, notice or agreement, a tenant who does not leave owes compensation of double the monthly rent (section 23).
• The tenant's notice: a tenant must give the notice in the agreement, or at least one month if it is silent.

The courts:

• Rent Courts: the Small Causes Courts in Chennai and the District Munsif Courts elsewhere. Most eviction cases are to be decided within 90 days.
• Appeals: an appeal goes to the Rent Tribunal (the District Court) within 30 days. Its decision, due within 120 days, is final.
• The Rent Authority: it deals with rent revision, repairs, deposits of refused rent and cut-off services.

Police verification

The Act does not require police verification of tenants, and we found no current statewide order making it compulsory. The Tamil Nadu Police citizen portal offers tenant verification as a paid service: ₹500 for an individual, with the tenant's photo, address proof and consent letter, and the report is issued within 15 days (TN Police FAQ). It is a sensible check; ask your local police station whether they expect it in your area.

For finding a tenant and checking their ID, see how to find tenants without a broker, and for the tax on the rent, tax on rental income in India. Gmore has rent-out pages for Chennai, Coimbatore, Madurai, Trichy and Namakkal.

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Checked against the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017 and its amendments of 2018, 2019, 2020 and 2022, the 2019 Rules, the 2021 villages notification, the Indian Stamp (Tamil Nadu Amendment) Act, 2023, the Registration Act, 1908 and the Rent Authority and Registration Department pages in October 2026. Written by the Gmore team.