The Model Tenancy Act will set up an independent authority in every Indian State and Union Territory for registering tenant agreements. A separate court will be covering tenancy-linked disputes and the advance security deposit of tenants will be restricted to two months’ rent at the most while it will be a maximum of 6 months for non-residential needs. The Model Tenancy Act will enable unlocking vacant homes for rental housing purposes. The Act will apply for premises let out for commercial, residential and educational usage.
Experts and industry leaders like Dr. Niranjan Hiranandani have stated that the Act will make sure that there is ample new rental housing stock created for all income groups. The Act will help in unlocking vacant homes for purposes of rental housing. It will give a major boost for private participants in rental housing as a unique business model for tackling the shortage of housing. The Act will facilitate institutionalization of rental housing by shifting it gradually to the formal market.
The Model Tenancy Act will have provisions for regulation of rights and duties for both tenants and landlords as per Shishir Baijal, Chairman & Managing Director at Knight Frank India. Chairman at ANAROCK Property Consultants, Anuj Puri, has stated that this Act will help in bridging the deficit in trust between landlords and tenants. Mani Rangarajan, the Group COO at Makaan.com, Housing.com and PropTiger.com, has stated that the Act will set up a Rent Authority for regulation of renting premises in a more transparent and efficient way.
Industry players like Rohit Poddar, Managing Director at Poddar Housing and Development Ltd, have opined that the approved Act will help in regulation and promotion of rental housing in India. Altaf Ahmad, the CBO, Rental Business, Square Yards, the Model Tenancy Act is expected to help in unlocking massive residential stock. The Cabinet has issued its approval for the Act while indicating its desire to transform an unorganized market into an organized one according to him. He also stated that owing to being unregulated, the residential rental category has always remained unscrupulous. The Act will help in cleaning up the rental sector while tackling aspects like security and rent along with safeguarding the rights of tenants and tempering rate of increase in rentals.
Ahmad also opined that the Act will help in unlocking huge volumes of rental housing stock currently lying vacant. Built homes staying vacant are a major irony in India where shortage of housing is a big issue. The Act will solve this problem while drawing more private sector participants into the rental housing category. The Act will be a two-dimensional solution as per Ahmad, i.e. helping in formalizing rental markets in India and also contributing towards lowering housing shortage in India. This will aid the mission of the Government named Housing for All by 2022. The Act will bring major relief to the rental housing sector as universally opined by all leading industry experts.
For a detailed report on this read the articles we were featured in:
Outlookindia : https://bit.ly/3yZixlL
The New Indian Express : https://bit.ly/3wQRdnK
Newsbarons India: https://bit.ly/3uL9uBv
Published Date: June 2, 2021
