Model Tenancy Act 2021
The Indian government has approved the Model Tenancy Act for circulation among states and UT’s which will embrace the changes by enacting fresh legislations or ameliorating their existing rental laws. The ministry of HUA floated the drafted bill in 2019 which comes into effe t after cabinet approval on June 02, 2021 where they proposed to establish an independent authority such as courts and tribunals in every state and UT for registration and addressing of tenancy disputes. The government has claimed that the MTA 2021 will facilitate the unlocking of vacant house for rental housing and inflate the real estate sectors as well as the interest of investors. Furthermore, effectuating of the act will build confidence and trust among the landlords and tenants.
Following are some highlighted points for landlords and tenants:
• Residential premises holding landlords can charge maximum two months rent as security deposit whereas commercial premises holding landlords can charge maximum six months.
• Repair Work : When the landlord proposes to make any improvement in or construct any additional structure on any premises, which has been let out to a tenant and the tenant refuses to allow the landlord to make such improvement or construct such additional structure, the landlord may make an application in this behalf to the Rent Courts.
• No landlord or property manager can withhold any essential supply to the premises occupied by the tenant.
• Eviction : Tenant will not be evicted during the continuance of tenancy agreement unless otherwise agreed to in writing by both the parties. If the agreement has not been renewed after the expiration of the current agreement and the property not vacated then the tenancy shall be deemed to be renewed on a month-to-month basis on the same terms and conditions as were in the expired tenancy agreement, for a maximum period of six months.
• Compensation in case of non-vacancy : On the expiry of extended period of six months of agreed tenancy period or the termination of tenancy by order or notice, the tenant shall be a tenant in default and liable to pay the rent as Compensation of double of the monthly rent for two months and four times of the monthly rent thereafter.
• Provisions on the revision of rent : Revision of rent between the landowner and the tenant shall be as per the terms set out in the Tenancy Agreement. If not agreed otherwise in the agreement, the landowner shall give a notice in writing three months before the revised rent becomes due.
• Landlord interference during the period of tenancy: A landowner or property manager may enter a premise in accordance with written notice or notice through electronic medium served to the tenant at least twenty-four hours before the time of entry.
The entry can be for the following reasons:
(a) to carry out repairs or replacement or do or get work done in the premises.
(b) to carry out an inspection of the premises for the purpose of determining whether the premises are in a habitable state.
(c) for any other reasonable purpose for entry as specified in the Tenancy Agreement.
Responsibilities of Landlords:
•Structural repairs except those necessitated by damage caused by the tenant
•Whitewashing of walls
•Painting of doors and windows
•Changing and plumbing pipes when necessary
•Internal and external electrical wiring and related maintenance when necessary.
Responsibilities of Tenant :
•Drain cleaning
•Witches and socket repairs
•Kitchen fixtures repairs
•Replacement of glass panels in windows, doors
•Maintenance of gardens and open spaces among others
•Must not intentionally or negligently damage the premises or permit such damage
•Must notify the damage to landlords as soon as possible.
The detailed link of the Act is annexed below:
Thanks for reading! :)