In the era of liberalization, privatization and globalization where migration is very much significant, demand for rental housing increases. But as per the census of 2011 more than 1.1 core houses were unoccupied in India. The previous rent control law is the major reason for resisting the growth of rental housing segments. To unlock the vacant houses and uplift the rental housing segments, the government of India has introduced Model Tenancy Act 2019. Lets understand what is Model Tenancy Act India Model Tenancy Act Key Features Security depositThe first aim of the Model Tenancy Act is to fix a security deposit at two months rent for housing. This security deposit cap is introduced in the act to make the rental house affordable for the tenants. As in big cities higher security deposits are the norms for rental housing. For example if the housing rent is Rs 25000 per month landlords use to quote 6 or 9 months security deposits. But as per the new norm landlords can not ask for more than 2 month rent as security deposit.Rent The second key feature is that the act seeks to penalize tenants for refusing to move out from their rental properties after the agreed upon rental period expires. In such a situation the landlord has the right to claim the double of the monthly rent for two months and four times of the monthly rent after that as compensation. Also the act states that the landlord can not refuse to provide essential utilities and access to common facilities. Landlords will also not be able to increase the rent without giving three months notice to the tenant.Rent agreementUnder this Law no person will be allowed to give or take the rental property except by an agreement in writing. Within two months of executing the rental agreement it will be mandatory for both parties landlords and tenants to intimate to the rent authorities about the tenancy agreement and the rent authority will issue a unique identification number to both the parties.Establishment of rent court and tribunalsUnder this section of Model Tenancy Act the Rent Court can allow repossession by the landlord if the tenant misuses the rental property, after being served a notice by the landowner. This is all about the Model Tenancy Act and its key features. Hope you have got the gist about this law and if you provide or take a rental property you will keep the above points in mind.
Post
Question
What is Model Tenancy Act India ?
✔In Progress
👁1507
Views
June 4, 2021
2021-06-04T16:21:35+00:00 2024-01-12T09:58:46+00:00Comment
1
Answers
Rent and Lease
Share