The Model Tenancy Act will change the market for rental property

- Antenna: Vivek Mehta

- The landlord must inform the tenant three months in advance of the decision to increase the rent

The central government last Wednesday approved the Model Tenancy Act-Tenant Act. The Centre's Department of Housing and Urban Affairs says the Model Tenancy Act maintains a balance between the rights and interests of both the tenant and the property owner. Responsibility carries out this operation in a complete and transparent manner. So far the situation was different. The tenants did not vacate the property. Second, property owners could not raise rents. As a result, 50 years ago, Rs. Today, he has been given Rs. I was getting only 100 rent. This was a blatant injustice. But it could not be changed as a result of the pro-tenancy law.

The new model act will apply to rented properties in both urban and rural areas. Yes, for that every state governments and the rulers of the Union Territories will have to amend their tenancy act. The state governments will have to make changes in their laws following the Model Act prepared by the central government. Today, one and a half crore houses in India are completely empty. They can't afford to rent even if they want to, because in the long run, if the tenant sues the court to assert ownership over it, the rental income will also stop and they will be in danger of falling into a property dispute. In this way many commercial and residential properties remained unused. Now the way is open for its use. Experts believe that after the implementation of the new law, more and more people will come forward to rent unused commercial property or flats. As a result, the current shortage of housing will be reduced. Business entrepreneurs will be able to venture with less capital. Other experts believe that once the law is enforced, the market for renting a flat or property will return to normal. As a result, the rental property market will stabilize.

The owner of the property and the lessee will determine the rent of the property by mutual agreement. The two will also have to decide together how long the property will be rented out. A written agreement can also be made for this. In case of renting out the residential property, no more than two months rent has to be paid as an advance i.e. security deposit. Similarly, in case of commercial or any other property, a provision has been introduced for him not to take more than six months rent as security deposit. A copy of this agreement between the tenant and the landlord must be provided to the authorities regulating the Tenancy Act. It will be known as the Rent Authority. Each state will have to set up a rent authority like RERA. The Rent Authority's digital platform will be prepared. This digital platform will be designed in the local language of each state. A copy of the agreement under the Tenancy Act has to be uploaded on this portal.

Property owners must notify the tenant three months prior to the rent increase. The tenant will not be able to add any demolition or improvement to the flat. He will be able to make any change in the flat only after getting the written approval of the flat owner. Provision for the establishment of rent courts and rent tribunals has also been made in the new Model Tenancy Act. The rent court or tribunal must rule on the dispute within a maximum of 60 days.

This tribunal and court are responsible for resolving any disputes between the property owner and the tenant. Provision has been made to resolve this dispute within 90 days. The tenant will also have to pay the rent for 30 days regularly. If the first case went to court, the tenant would stop paying the rent.