- The Ministry of Housing and Urban Affairs (MHUA) has released draft of ‘The Model Tenancy Act, 2019’ in public domain.
- Since land and urban development are state subjects, the central Model Act is not binding on the states unless they draft their legislation based on it.
- The Model Tenancy Act aims to regulate rental housing by a market-oriented approach. It seeks to promote the creation of a rental housing stock for various income segments including migrants, formal and informal sector workers, students, and working professionals.
- The Model Act states that all state rent control Acts should be repealed as the existing rent control laws are archaic.
- The draft law proposes to set up Rent authority in every state for the registration of all tenancy agreements. It has also proposed to set up a separate Rent court and Rent Tribunal for resolving tenancy-related disputes.
- The law states that both landlord and tenant will have to submit a copy of rent agreement to the district Rent Authority.
- The draft law has also proposed hefty penalty for tenants who fail to vacate the rented property after their tenancy has been terminated by order, notice or as per agreement.
- The law also states that the landowner has to give a notice in writing three months before revising rent.
- It also states that the security deposit to be paid by the tenant should not exceed two months’ rent for residential property, and should be a minimum of one month’s rent for non-residential property.
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