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Tenant Rights Against Excessive Rent Hikes in Iran 1405: Complete Legal Guide

Iran’s rental market remains under economic pressure in 1405. Fortunately, the decree by the heads of the three branches of government and the Law on Organizing the Land, Housing, and Rental Market have set a clear nationwide cap. The maximum allowed increase for residential lease renewals is 25 percent. Any demand above this limit is unlawful.

How the 25% Rent Cap Works in 1405

According to the heads of powers decree, residential lease contracts expiring from the date of notification (around 30 Khordad 1405) until the end of 1405 can be extended for one year at the tenant’s request, with a maximum 25% increase over the previous amount. This national ceiling overrides earlier provincial rates.

Renewal is not automatic or mandatory—it depends on the tenant’s request. Courts are instructed not to issue eviction orders solely because the lease term has expired.

When Can a Landlord Request Eviction?

The law is not one-sided. Landlords may seek eviction in these cases:

Holding a permit for demolition, reconstruction, or major repairs

Official sale of the property

Proving genuine personal or family housing need

Serious breach of obligations by the tenant

What If the Landlord Demands More Than 25%?

Tenants have a five-year window to file a claim, even after the lease ends. If a violation is proven:

The landlord must refund the full excess amount paid.

A fine equal to three times the unauthorized monthly increase is imposed.

Certain tax benefits may be lost.

Real estate agents also bear responsibility. Setting contracts above the legal cap can lead to referral to the State Inspectorate (Ta’zirat), heavy fines, or bans on activity.

Practical Steps to Protect Your Rights

1. Gather evidence: old and new leases (with tracking codes), payment receipts, messages, and related documents.
2. Attempt respectful negotiation with the landlord.
3. Send a formal notice through electronic judicial service offices.
4. File a complaint with the local Dispute Resolution Council.
5. Report any real estate agent misconduct separately to Ta’zirat.

Always verify the official approved rate through trusted systems such as the Self-Service Lease platform before taking action.

Understanding these protections empowers tenants to stand against unfair demands. For residents of Karaj or Alborz Province facing excessive rent increases, consulting a property lawyer or obtaining professional legal advice can significantly strengthen your case.