If you are still using a lease agreement template from a few years ago, it is out of date. The Karnataka Rent (Amendment) Act, 2025 was notified on 8 January 2026 and has changed several practical requirements around residential and commercial leases in the state, including deposit limits and mandatory digital registration. Drafting a lease agreement today needs to account for these changes, which is part of why a properly drafted lease takes a couple of days, not a copy-paste job from an old Word file.
What Changed Under the 2025 Amendment
- Security deposit caps: Residential security deposits are now capped at 2 months' rent, and commercial deposits at 6 months' rent. Landlords asking for the older norm of 6 to 10 months for residential leases are no longer within the law.
- Mandatory digital registration: Lease agreements must be registered through the Kaveri 2.0 portal, and failing to do so within the prescribed window can attract a monetary penalty.
- Decriminalisation of offences: Several contraventions that earlier carried criminal penalties under the Karnataka Rent Act, 1999 have been converted into a structured monetary penalty regime instead, with penalties designed to escalate periodically.
- Rent Controller as adjudicating authority: Disputes over deposit refunds, eviction, and other landlord-tenant issues are increasingly channelled through the Rent Controller acting in an adjudicating capacity, rather than straight to civil court.
Why Drafting Takes 2 to 3 Days
A compliant lease today needs to correctly state the deposit within the new cap, include the clauses the amended Act now expects (maintenance responsibility, notice period, renewal terms, and a clear description of the property matched to the khata or rent roll), and be ready for Kaveri 2.0 registration. Clawrity drafts lease agreements within 2 to 3 working days, which includes tailoring the deposit and notice clauses to whichever side of the deal you are on.
11-Month Leases: Still Common, Still Often Misunderstood
Many residential leases in Bangalore continue to be structured for 11 months to avoid the stamp duty and registration requirements that apply to longer terms. This practice predates the 2025 amendment and remains common, but landlords and tenants should not assume an 11-month lease escapes the new digital registration requirement altogether, since Kaveri 2.0 compliance is being tied to the rent agreement itself, not just to leases above a certain duration. If you are unsure which rules apply to your specific lease term, that is worth confirming before signing, not after a dispute arises.
Lease Agreement vs Rent Agreement
The terms get used loosely, but there are real legal differences in duration, renewal rights, and how easily a tenancy can be terminated. We cover this in detail in Lease Deed vs Rent Agreement: Which Is Better and Why.
Getting a Compliant Lease in Place
Whether you are a landlord renting out a flat or a tenant about to sign, having the agreement checked against the amended Act before signing is the cheapest insurance available, far cheaper than a deposit dispute later. Clawrity drafts and reviews lease agreements within 2 to 3 working days. See our Lease Agreement Drafting service or contact us to get your lease updated for the new rules.