Model tenancy act: Rights of tenants, landlords to be redefined
The government has drafted the Model Tenancy Act, 2019 to regulate renting of premises in an efficient and transparent manner. These new laws are being made to balance the rights of landlords and tenants. The draft for the act is in the final stage. The following are few of the points proposed in the act:
- Currently, rent agreements are registered at the sub-registrar’s office. In order to bring transparency and promote fairness in the rental housing segment, it has been proposed to set up a rent authority. The new draft Model Tenancy Act, 2019 proposes to limit the security amount to two months rent only.
- The landowner will have to give an original signed copy of the agreement to the tenant within 15 days of the deal.
- The policy states that if a rent agreement is made for a specific period, the landlord will not be allowed to increase the rent amount within the rental term. The landlord will not be able to increase the rent without giving a three months notice to the tenant.
- The landlord will have to give a notice of 24 hours to the tenant in advance of entering the premise.
- The responsibility to maintain the premises will lie with both the parties.
- Tenants will not be able to sublet part or whole of the rented building without any prior permission from the landlord.
- After termination of the rent period, the landlord will be liable to get double the monthly rent for 2 months and 4 times the monthly rent thereafter.
- In case the landowner refuses to carry out repairs, the tenant will be allowed to get the work done and deduct the same from the monthly rent.
- The security deposit to be paid by the tenant in advance will also be mentioned in the agreement.
- The landlord will be allowed to move the rent court in case the tenant does not pay rent for two months.
- The landlord will not be able to refuse to provide essential utilities and access to common facilities.
The Cabinet will likely get an approval in August. The Central govt has shared a copy of the Model Act with the States and Union Territories. The Act, once finalised, will be shared for adoption. The rights and responsibilities of both landlords and tenants will be protected.
The aim of the policy is to bring vacant unsold houses onto the rental market, to further encourage demand and reduce housing shortage.