PDCs — your best friend for uncertain tenants
PDC stands for Post-Dated Cheque. If a tenant seems even slightly risky — self-employed, first-time renter, or anything that makes you hesitate — ask for PDCs covering 6–12 months of rent at the time of signing.
A cheque bounce is a criminal offence under Section 138 of the Negotiable Instruments Act. This gives you real, enforceable legal leverage without going to civil court.
- Honest, financially stable tenants rarely object to providing PDCs. Reluctance is itself a warning sign.
- Store cheques safely in a labelled envelope. Do not deposit them in advance — hold them as insurance.
- As each month passes, you can return the corresponding cheque or allow the tenant to replace them with fresh ones.
The 2025–2026 deposit rules: what's changed
This is important — and also the one area where sources currently disagree, so read this carefully. The central Model Tenancy Act, 2021 sets a 2-month deposit cap for residential properties, and several 2026 reports describe Maharashtra as having aligned with it. Other equally recent sources state Maharashtra has not formally adopted the Act and still operates under the older Maharashtra Rent Control Act, 1999, where 2–3 months is common market practice rather than a hard legal ceiling. As of this writing, this is genuinely unsettled — confirm the current position with a lawyer or your local Sub-Registrar office before relying on either version.
Mumbai, where deposits of 6–10 months were once commonplace, is seeing lower deposits enforced more consistently either way — but whether that's a hard 2-month legal cap or a strong market trend matters for how confidently you can push back on a tenant demanding otherwise.
Collecting more than two months' deposit for a residential property is now against the law. Tenants can legally refuse and file a complaint with the Rent Authority.
What this means for you as a landlord
- Maximum deposit: 2 months' rent for residential properties.
- The deposit must be receipted in writing.
- It must be refunded within one month of the tenant vacating, minus valid deductions only.
- Deductions for normal wear and tear are NOT permitted. Only genuine damage and unpaid bills.
Since you can collect less deposit now, your PDCs become even more important as a financial safety net.
The move-in condition rule: do this on day one
Always state clearly — in writing and verbally — that the flat must be returned in the same condition it was received. Then:
- Do a room-by-room walkthrough with the tenant on the move-in day.
- Take photos and a short video of every room, fixture, appliance, and fitting.
- Note any pre-existing damage (scratched floor, chipped tile, etc.) in writing.
- Send all photos to the tenant via WhatsApp immediately — this creates a timestamped record both parties have access to.
- Both parties should sign an inventory list if the flat is furnished.
This one step prevents 90% of deposit disputes. It takes 20 minutes and saves enormous stress.
Handling late rent
- Send a WhatsApp reminder on or just after the due date. Keep it polite the first time.
- If it becomes a recurring pattern, reference the agreement in writing. Keep a record of every communication.
- Consistent late payment is valid grounds for non-renewal. Don't let sentimentality override your financial interest.
- If rent is unpaid for two or more months, you have legal grounds to begin eviction proceedings.
For Leave & Licence agreements, apply to the Competent Authority under Section 24 of the Maharashtra Rent Control Act — this is a faster summary process than a full civil court suit. A tenant who refuses to vacate after expiry of the licence is also liable to pay double the monthly licence fee as damages until they vacate.