Model Tenancy Act: Protection to tenants as well as landlords; Union Cabinet approves ‘this’ draft – union cabinet approves model tenancy act to create inclusive rental housing market

Model Tenancy Act: Protection to tenants as well as landlords;  Union Cabinet approves ‘this’ draft – union cabinet approves model tenancy act to create inclusive rental housing market

Model Tenancy Act: Protection to tenants as well as landlords; Union Cabinet approves ‘this’ draft – union cabinet approves model tenancy act to create inclusive rental housing market

News Agency, New Delhi

The Union Cabinet on Wednesday approved the draft Tenant Act (MTA) with a view to comprehensive reforms. Under this, separate rental authorities, courts and arbitrators will be set up in each district to protect the interests of both the tenant and the landlord.

After the enactment of this law, tenants will have to pay a maximum of two months rent as security deposit in residential areas, while a maximum of six months rent will have to be paid as security deposit for commercial property. Under this Act, all tenants will be required to enter into a written agreement. This agreement has to be submitted to the ‘Rent Authority’ in the concerned district. The draft will now be sent to the States and Union Territories. States will be able to implement it by enacting new legislation or making useful amendments to existing drafts.

The proposal was approved at a meeting of the Union Cabinet chaired by Prime Minister Narendra Modi. The purpose of this Act is to create a market for diverse, sustainable and inclusive rental housing in the country. Union Housing and Civil Affairs Minister Hardip Singh Puri said the draft would help improve the legal framework for renting houses across the country. This will pave the way for the development of this sector. Will help make rental housing available to people in each income group; It will also address the issue of homelessness. Vacant homes can be rented out through this channel; It could also increase private participation in the sector and alleviate the housing shortage in the country. Through this, the system of renting residential houses can be institutionalized.

Painting walls-doors-windows, replacing aqueducts and plumbing if necessary, exterior and interior wiring if not mentioned in the contract; Also the owner will be responsible for the related maintenance. The exception to this would be the loss incurred by the tenant. So, the tenant will be responsible for cleaning the sewer pipe, repairing the switches and sockets, repairing the kitchen fixtures, replacing the glass panels of the doors and windows and maintaining the garden with space.

Rental Authority, Courts and Arbitration

If there is a dispute between the landlord and the tenant, they must first go to the rental authority. If a party is not satisfied with the decision of this authority, then the rent can be appealed to the rent arbitral tribunal in the rent court and there too.

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