Model tenancy act approved by cabinet
Model tenancy act 2020 has been approved by cabinet this week. The tenancy act can further be passed as fresh legislation by any state or UT (or the state/UT can enhance its existing legislation to include the model tenancy act). The tenancy act mandates separate rent authorities, courts and tribunals in each district. The act will not be retrospective in nature and hence it will impact only new tenancies. The act mandates written agreement between the landlord and tenant for any new rental tenancies (though this was already enforced by most of the states with some waivers, this would become a mandate now without any exceptions). We discuss various aspects of the act – from when it will be implemented, who will be impacted and what will be the impact.
What Model tenancy act implies
-The act mandates tenant and landlord to enter into a rent agreement for any new tenancy
-Limits security deposit to 2 months for residential and 6 months for commercial tenancy
-Fine by multiples of monthly rental if tenant fails to vacate and re-do the rent agreement after its validity is over or after notice period, as mentioned in agreement is over.
-Mandates creation of rent authority in each district of state that implements this act. It further mandates that authority creates an online process for submission of documentation.
-It further lists the responsibilities of tenant and landlord.
From when will it be applicable
-It will be applicable for any new upcoming tenancy, will not apply to existing tenancies.
Who will be impacted
-Both landlord and tenant will be impacted.
What will be the impact
-Both will have to follow the rule book.
-Both have to enter into a written rent agreement.
-Both have to submit/inform rent agreement details with rent authority.
-Limits security deposit to 2 months for residential and 6 months for commercial tenancy
-If additional work carried out by landlord that has direct impact on rent and not an everlasting asset for the flat/room/home (e.g. added Air conditioner etc.), rent may be revised from one month after the work.
-Ability to reach rent courts for any grievances.
-Tenant to vacate flat in case of repeat of misuse (e.g. causing public disturbance or destroying property) of property (post notice of stopping misuse from landlord).
-If tenant doesn’t pay rent for two months even after receiving notice of delay, the tenant needs to vacate.
-Fine by multiples of monthly rental if tenant fails to vacate and re-do the rent agreement after its validity is over or after notice period, as mentioned in agreement is over.
-Steps/responsibilities/notice to carry out repair/enhancements are laid out.
-Rent courts/tribunals to listen to prayers by landlord/tenant and give judgment within 2 months.
The complete model tenancy act 2020 can be viewed at http://mohua.gov.in/upload/uploadfiles/files/3%20ENGLISH.pdf
Disclaimer: While every care is taken in ensuring correctness of content of this article, readers are suggested to go through the act to get all nuances of the act.
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Last Updated on June 7, 2021 by Go4Reviews
