Gujarat Assembly passes Rent Bill 2026 capping tenant security deposits

The Gujarat Legislative Assembly passed the Gujarat Rent Bill 2026, introducing regulatory reforms to tenancy agreements across the state. A major provision of the legislation is the statutory capping of tenant security deposits at a maximum of three months' rent, aiming to reduce upfront financial burdens on urban renters.

The bill aligns with the principles outlined in the Central Model Tenancy Act formulated by the Ministry of Housing and Urban Affairs to replace archaic rent control laws. Existing legacy rent legislation often caused disputes, depressed rental housing supply, and locked properties in lengthy litigation.

Key features of the Gujarat Rent Bill 2026 include capping security deposits at 3 months, creating specialized Rent Authorities, establishing dedicated Rent Courts and Tribunals for speedy dispute resolution, and mandating formal written tenancy agreements.

For state and central competitive exams, this story touches upon Urban Governance and State Economic Policy. Examiners may ask about the features of the Model Tenancy Act, dispute resolution mechanisms, and measures promoting affordable rental housing.