Model Tenancy Act 2021
What is this act all about weather at really proposes a complete overhauling of the legal framework of rental housing across the country. Many have even called it a game changer it was of course approved by the government of the 2nd of June 2021 and the new law is a Model Law which basically means it has been prepared with the objective balancing but that’s what the definition is in the law that has been floated that it is to balance out the interests and rights of both landlords and tenants and to establish an ethical and fair system for renting the properties in a disciplined and more efficient manner.
Why is it called a model act and what does it really mean?
Model Tenancy Act 2021 provides a pattern or the policy that States and Union territories can adopt completely with changes or even not adopt at all how come well the reason behind that is that issuing such a model act and not passing a binding law is that the parliament cannot pass the binding law in the scale and remember bold as a state list and officers scheduled according to the article 347 of the constitution that means state governments have exclusive powers to make laws on subjects state list.
So what exactly was the need what is the reason for the genesis of this act
Let’s look into that first where it wants to legalize the hidden market of rental housing release empty homes so many of them at the moment in the country raise rental yields simplify and remove the unethical tactics and also decrease procedural hurdles in registration as well and again it is aimed at increasing transparency and discipline how exactly does it plan to do this what will change with any new rental deals now must be a written agreement state if they choose to implement it as is we need to set up attract grievances with wrestle mechanism consisting of the rent authority or the rent court in the rental tribunal that is disposal of these grievances must be done in a time bound manner and that time is 60 days only. Let’s look at the price ceiling over here well that will be removed completely that’s big game changer digital platform that is another game changer for uploading and keeping a tap on rental agreements in several languages as well not just not just in English sub letting another game changer will be the discretion of the landlord structural changes to the providers will need prior written consent from the landlord and security deposit well in residential places maximum of two months rent an in nonresidential minimum of one months rent back some of six months that Lily has been given.
When it comes to repairs and maintenance this is an area which at the moment is false really the Gray zone nobody really knows how it works and a lot of push and pull happens where the add lips that who is liable for what sort of modifications in case of non compliance the sum will be taken from the security deposit of the tenants and rent for the landlords as well on the whole the repair of the overall structure that means plumbing system and wiring is the responsibility of the landlord. Repair in individual spots like tab switches are the responsibility of the tenants evictions another key reason of worry for a lot of landlords will act defines that as well and this will be done only in case of misuse of premises as decided by the end court the case of tenant does not vacate the landlord can levy twice the rent for the next month and four times the rent their own and they also define what exactly is misused it means public nuisance, it means damage, use of immoral or illegal purposes as well and then what about both measure meaning an unforeseeable circumstances in which somebody cannot fulfill the contract well that it says in such cases the tenant will be allowed to stay for a month since the end of the event.
So those are some of the key features over there but let’s also give you some key takeaways for what’s in it for landlords again is to build trust between the landlord and tenants because it clearly defines their obligations for tenants for example the security deposit will be paid and should not exceed two months rent in residential properties like I said six months rent in case of non residential properties as well landlord cannot cut power or water when there is a dispute something that we see happen a lot in India when it comes the part of the landlords however they cannot sublet to someone else without permission and they can charge double rent for two months post expired as well they can enter property on rent after 24 hours off notice however so those were the key takeaways on how this game changer really knew at has been floated what will happen which states will adopt in what form that remains to be seen.