Dipak.Dash@timesgroup.com
New Delhi:03.06.2021
More than six years after it was first mooted by the Centre, the Union cabinet on Wednesday approved the Model Tenancy Act which aims to protect the interests of both tenants and landlords.
The government expects this model law, which states can adopt and enact, will open up a large number of residential and commercial properties for rental purposes as the legal framework will eliminate the fear of owners losing their properties.
While announcing that states have the option to adopt the policy, housing and urban affairs minister Hardeep Singh Puri said he expects BJP-ruled states to roll it out and that other states would also do so as it benefits the common man. He said the policy, once notified by the states, will cover urban and rural areas. The model law lays out the norms for establishing separate rent authorities, courts and tribunals in every district to protect the interests of owners and tenants.
The model Act says that the rent and duration of tenancy will be fixed by mutual consent between the owner and tenant and there has to be a written agreement. It suggests that the security deposit for residential properties won’t be for more than two months’ rent and for commercial properties, it can’t be more than that of six months.
For revision of rent, landlords need to give a written notice three months in advance and the new rent will be on mutual consent.
Full report on www.toi.in
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