Bengaluru, August 2025 — The Karnataka government has cleared the decks for a sweeping overhaul of the state’s rental law, introducing the Karnataka Rent (Amendment) Bill, 2025, aimed at tightening enforcement, protecting tenant rights, and curbing illegal rental practices. The bill—approved by the Scrutiny Committee headed by Law and Parliamentary Affairs Minister H.K. Patil—is slated for introduction in the upcoming monsoon session of the Legislative Assembly.
Officials say the reforms are in response to rapid urbanisation and rising disputes in the rental housing market, particularly in Bengaluru, Mysuru, and other fast-growing cities.
Key Provisions and Penalty Hikes
The bill introduces substantial revisions to penalty structures, replacing jail terms with hefty monetary fines to deter violations.
1. Unauthorized Subletting
Tenants who sublet their rented premises without the landlord’s written consent will face fines of ₹50,000 (up from ₹5,000).
Landlords who knowingly allow such subletting will be fined ₹30,000 (up from ₹3,000).
The current provision allowing up to one month’s imprisonment for such offences will be scrapped, focusing on financial deterrence instead.
2. Unregistered Brokers
Brokers or property agents operating without registration under Section 20 of the Act will face ₹25,000 per day fines, up from the current ₹2,000.
Repeat offences will attract an additional ₹20,000 per day penalty.
Digital Reforms and Transparency Measures
To modernise the rental process, the government will launch an online rental agreement registration portal.
This aims to reduce informal, undocumented agreements that often lead to disputes.
The portal will serve as a central database, enabling better oversight and faster resolution of conflicts.
Tenant Protection and Fair Market Practices
The amendment bill proposes:
Market-based rent regulation to ensure landlords receive fair returns while preventing unreasonable rent hikes.
Mandatory eviction notices to stop sudden or arbitrary evictions.
Tax incentives and subsidies for landlords offering affordable housing, encouraging lower rental rates in congested markets.
Fast-track dispute resolution through dedicated rental tribunals to ease court backlogs and provide speedy justice.
Government’s Rationale
According to Minister H.K. Patil, these changes reflect “a balance between protecting tenant rights and safeguarding landlord interests.” With Karnataka’s urban rental demand growing rapidly—driven by tech hubs, migration, and educational institutions—the government believes stricter regulation and transparent systems are essential to prevent exploitation on both sides.
Industry experts suggest the move could formalise the rental sector, attract investment in rental housing, and reduce the scope for under-the-table deals. However, some housing activists warn that high penalties might burden smaller landlords and tenants, urging for phased implementation and public awareness campaigns.
What Happens Next
The bill will be introduced in the monsoon legislative session for debate. If passed, the amendments will come into force in early 2026. The government has also indicated that rules and procedural guidelines will follow to clarify enforcement and registration processes.
As the state watches closely, Karnataka’s rental reforms could become a model for other states grappling with similar urban housing pressures.
Karnataka Rent (Amendment) Bill, 2025 – At a Glance
🔹 Penalty Hikes
₹50,000 fine for tenants subletting without landlord’s consent (up from ₹5,000).
₹30,000 fine for landlords allowing unauthorized subletting (up from ₹3,000).
₹25,000/day fine for unregistered brokers (up from ₹2,000).
Additional ₹20,000/day for repeat broker violations.
🔹 New Reforms
Online rental agreement registration portal for transparency.
Market-based rent regulation to prevent sudden hikes.
Mandatory eviction notices to protect tenants.
Tax incentives & subsidies for affordable housing.
Fast-track dispute resolution via rental tribunals.
