The Gujarat Assembly passed the Gujarat Rent Bill, 2026, on Friday with unanimous support. This new legislation aims to establish a regulatory framework for rental properties, ensuring the protection of both landlords’ and tenants’ rights. The bill is expected to streamline rental agreements and address disputes more effectively.
It would give the landlord a fair remedy and the tenant a respectful roof, bring transparency to the rental market and strengthen mutual trust, he added. The Act will apply across Gujarat. After it takes effect, no premises may be let except under a written agreement. Landlord and tenant must jointly inform a new officer, the Rent Authority, within two months of signing.
Urban development minister Kanubhai Desai, who introduced the Bill, said the state had so far worked under the Mumbai-era rent law of 1947, which had to be extended from time to time and left both sides in legal tangles.
The new Gujarat Rent Act, he said, was not merely a legal document but a link in the state’s economic and social life.
If they fail, each must inform the Authority separately within one more month. The Rent Authority is a government officer not below the rank of Deputy Collector or Assistant Municipal Commissioner. That office must set up a digital platform, give every agreement a unique identification number and put the details on its website. Rent will be the amount written in the agreement. A security deposit cannot exceed three months’ rent and must be returned within a month of the tenant handing back vacant possession, after lawful deductions, as per the new proposed law. A tenant cannot be thrown out during the agreed term except through a Rent Court, and only on grounds set out in the law. These include two months’ unpaid rent after notice, damage to the property, sub-letting without consent, or the landlord’s need to rebuild. Government buildings, company staff quarters, religious and charitable premises, Waqf property and public-trust property stay outside the Act unless both sides agree to come under it. Disputes will be heard at three levels. The Rent Authority takes first filings. The Rent Court, headed by an officer not below Additional Collector or Deputy Municipal Commissioner, hears eviction cases. The Rent Tribunal, headed by a District Judge or Additional District Judge, hears appeals.
The 1947 rent law stands repealed for new lettings.
Desai said the Bill would raise ease of living and discipline in the real-estate market.
