Model Tenancy Act, 2019

According to the National Census, vacant houses comprised around 12 percent of the total share of the urban housing – an increase of 71 percent since 2001.

Need for Rental Regulation:

• Acute housing shortage.
• Rise in vacant houses.

Challenges in Housing Infrastructure:

• Lack of rental Policy
  • Tenant-owner conflicts unresolved.
  • Difficult to evict if

• Rise in vacant houses.

• Low rental yield
  • Poor investments
  • Black money generation
• Lack of demand in far flung areas
  • No necessary infrastructure.
  • Poor connectivity
• NRIs hesitate to lease property
  • Fear of squatters.
  • Legalities in eviction.

Level Playing field: Tenants and Owners-Model Tenancy Act,2019

1. Initial advance is capped.
   • Residential rentals : twice the rent
   • Non-residential : one month’s rent
2. Eviction criteria
   • First two months – twice the rent
   • Thereafter – 4 times the rent
3. No mid-term hikes, Nor cut-off or withholding of essential services.
4. Rent revision heads up – three months prior.
5. No sublet.
6. Land lord responsibilities : structural changes, white washing etc
7. Inform concerned rental authority within two months of signing the agreement.
8. Disagreement – rental authority – deputy collector.

Challenges:

• Land and urban development – state subjects.
• Prospectively applicable – doesn’t affect the existing tenancies.
• Political exigencies in cities like Mumbai where tenants have occupied residential properties in fine areas for a pittance.
• Security deposit cap – practically difficult. For example, Bengaluru – 10 times the month rent.