Landlords in Bangalore often treat renting out a property as a simple process, find a tenant, sign a standard 11-month agreement, collect a deposit, done. Since the Karnataka Rent (Amendment) Act, 2025 came into force in January 2026, a few of those old habits are no longer fully compliant, and a proper tenancy review before you rent out a property is worth doing now, not after a dispute forces you to learn the new rules.
What a Tenancy Review Actually Checks
A tenancy review is not just drafting the agreement, it covers the landlord's own ownership documents (so there is no question later about who has authority to lease the property), the deposit amount against the new statutory cap, the tenant's background and intended use of the property, and whether the property itself is legally fit to be rented, meaning it has a valid khata and is not under any construction violation notice.
The Deposit Cap Landlords Keep Missing
Under the amended Act, residential security deposits are capped at 2 months' rent. Many landlords in Bangalore have historically asked for 6, 8, or even 10 months' rent as a deposit, a practice that is now outside the statutory limit. Continuing to demand a deposit above the cap is not just a negotiating overreach anymore, it is a compliance issue under the amended law.
Mandatory Registration Through Kaveri 2.0
The amendment requires lease agreements to be registered digitally through the Kaveri 2.0 portal, with a monetary penalty for non-compliance. An unregistered agreement is also weaker evidence in a dispute, if a tenant refuses to vacate or a deposit dispute arises, a properly registered agreement gives the landlord a stronger evidentiary footing before the Rent Controller than a purely notarised document.
Structured Penalties Instead of Criminal Liability
One genuinely useful change for both landlords and tenants is that several offences under the Karnataka Rent Act, 1999 that previously carried criminal penalties have been converted into a structured monetary penalty regime under the amendment, with penalties designed to escalate over time. This makes disputes more predictable to resolve, but it also means landlords who ignore the new compliance requirements face real, recurring financial exposure rather than a one-time risk.
What to Check Before Handing Over Keys
- Tenant identity verification and, where applicable, local police verification requirements
- Deposit amount within the 2-month residential cap
- Clear clauses on notice period, maintenance responsibility, and permitted use of the property
- Agreement drafted for Kaveri 2.0 registration, not just a notarised document
For Tenants, Too
These changes are not one-sided. A tenant asked for a deposit above the statutory cap, or asked to sign an unregistered agreement in a way that leaves them without recourse, has grounds to push back under the amended Act. Reviewing the agreement before signing protects both sides.
Getting Compliant Before You Rent
Clawrity reviews tenancy documentation and drafts compliant lease agreements within 3 to 5 working days, factoring in the 2025 amendment's deposit caps and registration requirements. See our Tenancy Review service, our related guide on lease agreement drafting turnaround, or contact us before you sign a new tenant.