In India, the rental housing sector has long been plagued by challenges, with both tenants and landlords facing various issues. The Model Tenancy Act 2021 aims to address these longstanding concerns and usher in a new era of transparency and fairness in the rental market.  This legislation strives to balance the rights and responsibilities of both parties, making the rental process more  structured  and equitable. Let’s explore some of the pivotal aspects of this act and its impact on stakeholders.

If you want FAQs on the Model Tenancy Act here is the link

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Some Model Tenancy Act Clauses

Jurisdiction of Civil Courts (Chapter VIII, Clause 40)

Traditionally, civil disputes related to rental agreements were handled by civil courts, often resulting in  lengthy and costly  litigation. The Model Tenancy Act alters this landscape by barring civil courts from adjudicating such matters, instead delegating jurisdiction to newly established Rent Authorities. This shift is designed to  expedite  dispute resolution, ensuring  timely  and more effective handling of cases.

Security Deposits (Chapter III, Clause 11)

One of the most contentious issues in rental agreements has been the amount of security deposit required.  The Act limits security deposits to two months’ rent for residential properties and six months’ rent for commercial properties,  providing much-needed relief to tenants and establishing a standardised approach .

Subletting (Chapter II, Clause 7)

Subletting without the explicit consent of the landlord has been a  common source of conflict  in rental relationships. The Act now mandates that tenants obtain written consent from the landlord before subletting, ensuring that property owners retain  control and oversight  over their properties.

Establishment of Rent Authority (Chapter VI, Clauses 30-32)

A key component of the Model Tenancy Act is the establishment of a dedicated Rent Authority.  This body serves as the central point for documentation and dispute resolution related to tenancies.  It plays a crucial role in overseeing the rental market, acting as the first point of contact for dispute resolution and enhancing regulatory oversight and support.

For both tenants and landlords, the Rent Authority can be a valuable resource, providing guidance and facilitating a smoother rental experience.

Mandatory Tenancy Agreements (Chapter II, Clause 4)

To promote transparency and accountability,  the Act requires that all new tenancies be formalised through written agreements. This measure is aimed at  mitigating disputes  by ensuring that both parties clearly understand their rights and obligations from the outset.

Eviction and Recovery of Possession (Chapter V, Clauses 21-24)

The Act outlines specific grounds on which landlords can seek eviction, such as non-payment of rent and misuse of property, among others.  While protecting the rights of landlords, it also ensures that the eviction process is fair and follows due process,  making it less cumbersome for landlords to recover possession of their properties under legitimate circumstances.

Rent Revision (Chapter III, Clauses 9, 10)

Rent increases have been a source of tension in many tenancy relationships.  The Act specifies criteria and procedures for rent revisions, which must be outlined in the tenancy agreement. This provision aims to  ensure that any changes in rent are reasonable, mutually agreed upon, and documented, providing certainty and transparency for both parties .

Repair Responsibilities (Chapter IV, Clause 15)

The Act clearly  delineates  the responsibilities for repairs and maintenance between the landlord and tenant,  reducing ambiguity and potential conflicts  regarding property upkeep.By clearly defining the obligations of each party, the Act aims to foster a more harmonious and collaborative relationship between tenants and landlords.

Enhanced Protections and Provisions

Additional protections and provisions in the Act address various other aspects of the tenancy relationship, such as:

Rights to Essential Services:

Ensuring that landlords cannot  arbitrarily  cut off essential services as a form of eviction.

Tenant’s Right to Privacy:

Protecting tenants from  unwarranted  landlord entry without sufficient notice.

Digital Platform for Registration:

Facilitating easier registration and management of tenancy agreements through a  centralised  digital platform. These provisions not only safeguard the rights of tenants but also promote accountability and transparency for landlords, creating a more balanced and equitable rental market.

The Model Tenancy Act 2021 is a  much-needed  step forward in reforming rental laws in India. By addressing key issues such as jurisdiction, security deposits, and the responsibilities of both landlords and tenants, the Act  aims to create a more structured and fair environment  for the rental market.  As stakeholders navigate these new regulations, effective implementation and collaboration between all parties involved will be crucial to realising the full potential of the Act.

Link to the Model Tenancy Act itself it is here

Disclaimer: We are an engineering consulting firm, we are not here to dispense with Legal advise. For Legal advise you should contact a Lawyer or a Law firm. This is a blog for educational purposes only not to be misconstrued for legal advise