Hidden costs in rental agreements: What tenants should watch out for

Published 22 June 2026 · india

(File photo) What your landlord can legally charge you Who pays for repairs, and what can be deducted from your deposit Renting a house often

(File photo) What your landlord can legally charge you Who pays for repairs, and what can be deducted from your deposit Renting a house often involves more than just paying the monthly rent. The deposit is higher than what was discussed, maintenance charges appear out of nowhere, and by the time you move in, you have paid well beyond the first month’s rent. Understanding what landlords can and cannot legally charge and what the law says about each, is the first step to protecting yourself.The starting point is the security deposit. Under Section 11 of the Model Tenancy Act (MTA), 2021, a landlord cannot demand more than two months’ rent as a security deposit for a residential property.

Anything beyond that has no legal backing under the Act. The same section also requires the deposit to be refunded on the date you hand over possession, not days or weeks later.On rent revision, Section 9 of the MTA says that landlords cannot raise rent mid-tenancy unless the terms for doing so are already written into your agreement. Even if the landlord carries out repairs or improvements, any resulting rent increase requires your written consent before the work begins, and kicks in only a month after completion.A verbal notice of a rent hike has no legal standing.Every payment that is made, rent or otherwise, must be accompanied by a signed receipt under Section 13.

Crucially, the Act's mandatory registration form requires landlords to declare all additional charges upfront, covering electricity, water, furnishings and any other services. If a charge does not appear in that form at registration, it is not enforceable.One of the most common sources of dispute at the end of a tenancy is the security deposit deduction for repairs. The MTA’s Second Schedule says that structural repairs, whitewashing, plumbing pipe replacement and electrical wiring are the landlord's responsibility. As a tenant, you are liable only for smaller upkeep: tap washers, drain cleaning, geyser repairs, lock replacements and similar items. Any deduction from the deposit for structural or major maintenance work is not legally sanctioned.If the landlord withholds water, electricity or any other essential service, Section 20 of the Act entitles one to approach the Rent Authority and claim compensation of up to two months’ rent.One important caveat: the MTA is a model law that states must individually adopt.

As of 2026, Assam is the only state to have enacted it in full. If you live in Delhi, Uttar Pradesh, Maharashtra or most other major cities, your tenancy falls under older state-level legislation that does not carry these specific protections. It makes it all the more important to read your agreement carefully before signing.