InvestorQ : What is the Model Tenancy Act? Will it work on ground levels for both the tenant and owner?
Ishita Jain made post

What is the Model Tenancy Act? Will it work on ground levels for both the tenant and owner?

vani Patil answered.
1 year ago
Finally, the Model Tenancy Act will be soon effective in India. This Act has been introduced to the rental sector in India because the rental market of properties in India is very vibrant and deep, and every year millions of people rent out properties in India.
Now, there’s always this argument that who is right or wrong. On one hand, the tenant blames the owner, and on the other, the owner blames the tenant. So, there’s no one to decide who could decide who is right or wrong. Now, if this Act is effective, there will be ground rules that could help resolve matters.

What are the keylines of this Model Tenancy Act?

1) Heavy penalty if the tenant does not vacate the property within admissible time, an extension of a maximum of 6 months will be allowed over the actual agreement period.

2) Security deposit that owners ask for cannot exceed two months’ rent for residential properties and six months’ rent for commercial/ non-residential properties.

3) Separate Rent Authorities, Courts, and Tribunals will be set up in each district.

4) A written agreement between the parties should be mandatory.

5) When there’s any conflict between the landlord and the tenant, he cannot stop the essential supplies of the premises.

6) No structural changes or subletting of the property will occur without the landlord's written permission.

7) Rent revision will happen only as per the original agreement, so the landlord cannot inflate the rent as and when it suits his needs.

8) The landlord will have to respect the privacy of the tenant and shall be required to give the tenant a notice of at least 24 hours before visiting the premises.

9) Eviction of the tenant could be done only by seeking orders from the relevant rent authority, on any or all of these grounds.

10) Tenant refuses to pay the agreed rent:

  • Tenant fails to pay rent for more than two months;
  • Tenant is parting possession of part or whole of premises without the written consent of landlord;
  • Tenant is misusing premises even after receiving written notices to desist from such misuse; and
  • any structural change by the tenant without the written consent of the landlord.
This Act also lays down the parties' roles and responsibilities, which will be discussed later.