Cabinet approves Model Tenancy Act for circulation to States, UTs
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If handed by States and UTs, it’ll prescribe norms for lease agreements, deposits, dispute dealing with and different points of rental properties
The Union Cabinet on Wednesday permitted the Model Tenancy Act to be despatched to the States and Union Territories to enact laws or amend legal guidelines on rental properties. The assembly was chaired by Prime Minister Narendra Modi.
“It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth…It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness,” a authorities assertion stated.
The mannequin Act, if handed by the States and UTs, would prescribe the norms for lease agreements, deposits, dispute dealing with and different points of rental properties.
“The Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market. The Model Tenancy Act will facilitate unlocking of vacant houses for rental housing purposes. It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage,” the federal government stated.
Among the provisions within the mannequin Act is a cap of two months hire on the safety deposit to be paid by tenants for residential properties and 6 months hire for non-residential areas and appointment of a hire authority to settle disputes in every district. The Act additionally makes it obligatory for there to be a written settlement between the property proprietor and the tenant.
The draft Act had been printed by the Union Housing and Urban Affairs Ministry in July 2019 and despatched to the States and UTs for suggestions.
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