Model Tenancy Act approved by Centre; all you need to know
Aiming to address the prevailing issues of homelessness, the Act will help create adequate rental housing stocks for all the income groups
Did you have a fight with your owner over the payment of repairs? Did your landlord refuse to bear the plumbing cost? The good news is now the Central govt has passed a bill that can come to your rescue.
On June 2, the Central government approved the Model Tenancy Act (MTA), aiming to bring about wide-ranging reforms, including setting up of separate rent authorities, courts and tribunals in every district to protect the interest of both the owner and tenant.
States and Union territories can either adopt the new Act by enacting fresh legislation or amend the existing rental laws.
“Under the MTA, the rent authority, rent court, and rent tribunal would fast track resolution of disputes within 60 days. The security deposits for residential premises will be 2 months rent and for commercial spaces, it will be 6 months rent” Hardeep Singh Puri, Union Minister for Housing & Urban Affairs said.
Aiming to address the prevailing issues of homelessness, the Act will help create adequate rental housing stocks for all the income groups.
“Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market. It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage,” the ministry of housing & urban affairs was quoted as saying.
Will the new Act impact existing tenancies?
No, the MTA will be enforced prospectively and will not impact existing tenancies.
Is a written agreement necessary for new tenants?
Yes, a written document stating the rent and duration of tenancy will have to be submitted to the respective rent authority which will be set up in every district. This is a compulsory clause for new tenants.
All terms and conditions must be mutually decided and stated in the rent agreement. In case of any conflict, the final word will be as per this document signed by both parties.
What is the maximum limit for security deposits?
As per the latest Act, the security deposit to be paid by the tenant in advance will be a maximum of two months rent.
Responsibilities of the landlord?
Responsibilities of the tenant?
– Drain cleaning – Witches and socket repairs – Kitchen fixtures repairs – Replacement of glass panels in windows, doors – Maintenance of gardens and open spaces among others – Must not intentionally or negligently damage the premises or permit such damage – Must notify the landowner of any damage, as soon as possible
Tenant eviction rules
The tenant cannot be asked to vacate the rental home during the tenancy period unless otherwise agreed to in writing by both parties.
Compensation in case of non-vacancy?
After the termination of tenancy, if the tenant continues to reside in the same property, h/she will be liable to pay compensation of double of the monthly rent for two months and four times the monthly rent thereafter.
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