Latest Property Rental Policy in Andhra Pradesh: What Tenants and Landlords Must Know in 2025

New Rental policy

Amaravati, Andhra Pradesh:
With rising urban growth, migration, and rapid commercial expansion across Visakhapatnam, Vijayawada, Tirupati, Guntur, Chittoor and major towns, the property rental sector in Andhra Pradesh is witnessing significant attention in 2025. While national media has been discussing “New Rent Rules 2025”, the Government of Andhra Pradesh continues to operate under the existing Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960, with courts actively interpreting and enforcing its provisions.

However, the increasing public debate around new-age rental reforms, online agreements and deposit caps is pushing the state towards future policy modernization. Here’s a detailed look at the current framework, updates, court rulings and what tenants and landlords need to understand.

Existing Legal Framework Remains Active

The Andhra Pradesh Buildings (Lease, Rent and Eviction) Control Act, 1960 continues to be the official rental law in the state. The Act regulates:

✔ Fair-rent fixation

Rent can be determined by the “Rent Controller” based on building type, locality, age, amenities and historical rent data.

✔ Tenant protection

Landlords cannot evict tenants without valid grounds such as:

Wilful default in rent
Landlord’s bona fide requirement
Structural repairs or reconstruction
Lease violation

✔ Written agreements

While not mandatory under the old law, written rental agreements have become a standard requirement for safety and legal evidence.

✔ Limited rent hikes

Rent increases must be reasonable and follow municipal assessments and norms.

✔ Applicability

The Act applies to all municipal areas, including: Visakhapatnam, Vijayawada, Tirupati, Kakinada, Rajahmundry, Guntur, Nellore, Chittoor and many urban towns.

New “India Rent Rules 2025” — Not Yet Official in Andhra Pradesh

A wave of public discussions has emerged nationwide regarding new proposed rules such as:

2-month deposit cap for residential properties
Online / digital mandatory rental agreement registration
Notice-based rent hikes
Tenant privacy protection
Mandatory written notices for landlord entry
Clear guidelines for eviction

However, no official notification has been issued by the Andhra Pradesh state government adopting the new nationwide model rent rules.

Fact-checks by legal bodies and media report that the “2025 Rent Law” is still under discussion, and each state must independently adopt or modify the rules.

Conclusion:
As of December 2025, Andhra Pradesh still follows the 1960 Rent Control Act.

Recent Court Rulings Impacting Tenants and Landlords

In 2025, the Andhra Pradesh High Court delivered several important judgments strengthening clarity in rental matters.

🏛️ Fast Eviction for Senior Citizens (65+)

Under Section 10C of the AP Rent Control Act, landlords aged 65 or above have the right to seek immediate possession of their property. Courts have begun enforcing this strongly.

🏛️ Rent Must Be Paid Even During Disputes

Courts reaffirmed that tenants must continue paying rent — even if litigation or disputes exist — as per CPC Order 15A.

🏛️ Eviction Allowed After Lease Expiry

If a tenant continues to occupy a building after lease expiry, they are considered “unauthorized occupants” and subject to eviction under the Transfer of Property Act.

Why Rental Policy Modernization Is Becoming Necessary

Experts point out that Andhra Pradesh’s rental market is evolving rapidly:

✔ Surge in urban populations

Tirupati, Vizag, Vijayawada and Guntur are witnessing a fast rise in residential and commercial rentals.

✔ Demand for digital agreements

Tenants and landlords want online registration, QR-based agreements and e-stamp verification.

✔ Need for greater transparency

Security deposit limits, rent-hike rules and eviction procedures need modernization to reduce disputes.

✔ Commercial boom

With IT parks, educational hubs, and transport infrastructure expanding, commercial rentals require clearer policies.

What Tenants Should Know in 2025

Check if your area falls under the Rent Control Act.
Always sign a written rental agreement with clear terms.
Maintain digital rent receipts or UPI payment records.
You cannot be removed without a legal reason.
Senior citizen landlords may have special eviction rights.

What Landlords Should Know in 2025

Do not give property on rent without a registered or notarized agreement.
For rent defaults, approach the Rent Controller or file eviction under valid legal grounds.
For seniors above 65, the law provides faster possession rights.
Maintain transparent communication on repairs, rent hikes and notices.

Expected Changes in the Coming Months

Policy experts believe Andhra Pradesh may soon consider:

Adoption of Model Tenancy Act provisions
Digital rental agreement system
Online dispute resolution mechanism
Uniform deposit and rent-hike guidelines
Stricter rules for unauthorized occupation

No official announcement has been made yet, but discussions are ongoing at state and national forums.

Conclusion

As of 2025, Andhra Pradesh’s rental sector continues under the established Rent Control Act of 1960, supported by updated court interpretations. While the “New Rent Rules 2025” have sparked public attention, they are not yet implemented in the state.
With rising urban growth and commercial expansion, policy modernization is expected in the coming years — aiming for transparency, digitalization and smoother rental relationships.