Odisha to Introduce New Urban Rental Law, 2026: Stronger Protection for Tenants and Landlords

The Odisha government is set to introduce a major overhaul of its urban rental system with the proposed “Odisha Urban Area Rental Control Act, 2026”, aimed at replacing the existing Odisha House Rent Control Act, 1967 (and its 1974 amendment). The new legislation is designed to bring greater transparency, legal protection, and balance between landlords and tenants in urban housing and commercial rental arrangements.

Replacement of the 1967 Rent Control Law

The proposed Act will repeal the decades-old rent control framework that has governed rental agreements in Odisha since the late 1960s. The government plans to modernize rental regulations in line with current urban housing needs and market conditions.

The new law will apply to:

• Residential houses in urban areas
• Shops and commercial establishments
• Educational institution premises such as schools and colleges (if rented)

However, it will not apply to:

• Factories and industrial establishments
• Hotels, lodges, and dharamshalas
• Government quarters
• Company-owned housing
• Religious institutions and waqf properties

Even so, parties may voluntarily adopt the Act’s provisions through mutual agreement.

Mandatory Written Rental Agreement

Under the proposed rules, no property can be rented without a written tenancy agreement. Oral rental arrangements will no longer be legally valid.

Both landlord and tenant will be required to:

• Sign a formal tenancy agreement
• Submit a joint intimation within two months of signing
• Notify the local Rent Authority and police station using a prescribed format

This step is intended to improve accountability and reduce rental disputes.

Protection Against Arbitrary Eviction and Utility Disruption

The draft law strictly prohibits landlords from:

• Forcibly evicting tenants without due process
• Increasing rent arbitrarily outside agreed terms
• Cutting essential services like water, electricity, or gas

Violations can result in penalties, including compensation equal to two months’ rent payable to the tenant as directed by the Rent Authority.

At the same time, tenants filing false or harassing complaints may face double penalties, ensuring balance in dispute resolution.

Entry Rules and Privacy Safeguards

Landlords or property managers will be required to:

• Provide at least 24 hours’ written or digital notice before entering the rented premises
• Enter only during reasonable hours (not before sunrise or after sunset)

This provision is aimed at protecting tenant privacy and preventing misuse of access rights.

Limits on Security Deposit

The new Act introduces strict caps on security deposits:

• Residential properties: maximum two months’ rent
• Commercial properties: maximum six months’ rent

Security deposits must be refunded immediately after deducting dues when the tenant vacates the property.

Regulation of Rent Increase

Rent increases will be strictly governed by the terms of the tenancy agreement. Arbitrary hikes will not be allowed.

However, rent revision may be permitted:

• After major renovation or structural work by the landlord
• Only through mutual agreement, typically one month after completion of such work

Relief in Case of Natural Disasters

The proposed law includes tenant protection during emergencies such as:

• Floods
• Cyclones
• Earthquakes
• War or similar extraordinary situations

During such events:

• Landlords cannot demand rent for affected periods
• Tenants must be allowed to remain under existing terms for at least one month, if the property remains usable

Conclusion

The Odisha Urban Area Rental Control Act, 2026 is expected to significantly reshape the rental housing landscape in the state. By introducing structured agreements, limiting arbitrary rent hikes, regulating deposits, and ensuring legal safeguards for both parties, the law aims to create a more transparent and balanced rental ecosystem in urban Odisha.