Union Cabinet approves Model Tenancy Act to encourage renting out vacant properties
Kanwar Inder Singh/ royalpatiala.in
The Union Cabinet, chaired by the Prime Minister Narendra Modi has approved the Model Tenancy Act for circulation to all States / Union Territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably.
It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.
The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness. Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market.
The Model Tenancy Act will facilitate unlocking of vacant houses for rental housing purposes. It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage.
The government said the Act would facilitate the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
The Model Tenancy Act addresses factors like the need to have a formal rent agreement, how much security deposit should be paid, rate of rent increase, and grounds for eviction.
THE MODEL TENANCY ACT, 2020
An Act to establish Rent Authority to regulate renting of premises and to protect the interests of landlords and tenants and to provide speedy adjudication mechanism for resolution of disputes and matters connected therewith or incidental thereto.
June 2,2021
