Housing Ministry Will Soon Come Out with Model Tenancy Law To Lift Real Estate Sector

Housing Ministry Will Soon Come Out with Model Tenancy Law To Lift Real Estate Sector

The Housing Ministry proposed the draft of the Model Tenancy Law in July 2019, which is now ready, said housing and urban affairs secretary Durga Shanker Mishra. He further said that the draft needs to be translated into many other languages as it has far-reaching implications.  The Model Tenancy Act, 2019 will bring a sea change in the status quo for rented premises. It describes the rights and obligations of the landlord and the renter in a detailed manner and build trust and confidence between them. SURFACES REPORTER (SR) thinks that the welcoming part of the Act is that it brings transparency and promote the speedy & fair redressal of the disputes arising between the landowner and the tenant. Look out the salient features of the Model Tenancy Act here:

Also Read: Secretary, Housing on new Affordable Rental Housing Opportunities for Real Estate | Durga Shankar Mishra | PHD Chamber of Commerce & Industry | Surfaces Reporter

During a webinar organized realtors’ body NAREDCO, Mishra pointed out, “1.1 crore homes were vacant as per 2011 census as people fear to give their homes on rent. The model tenancy law will eliminate anomalies and give a boost to real estate sector.”

As per the New Act, the registration of contract between tenant and the landlord is mandatory. The landowners will have to give a notice in writing three months before revising rent. Also, they have to provide one copy to the rent control authority. This act also advocates appointing a district collector as rent authority and charge heavy fine from tenants for staying longer from the said period.

Anuj Puri, Chairman - ANAROCK Property Consultants, said, “The Model Tenancy Act aims to bridge the trust deficit between tenants and landlords by clearly delineating the obligations of tenants and landlords. To ensure speedy redressal of disputes, it proposes to establish Rent Court and Rent Tribunal to hear appeals for matters connected to rental housing. Ultimately, the creation of a rental housing stock will help students, working professionals and the migrant population, at large, to find accommodation.”

Also Check Out: Cover Story: The shifts in WORKSPACE DESIGN & status of Commercial Real Estate

Dhruv Agarwala, Group CEO, Housing.com, Makaan.com and PropTiger.com found this act apt and believed that the provisions announced would make ‘renting a viable option for tenants as well as for property owners.’

Elated with the Model Tenancy Law, Ankit Kansal, co-founder and managing director, 360 Realtors also expected that the government will ensure that the states should not face any obstacles to implement it as was seen during the execution of RERA.” He further added, "Investment in properties will also increase as people will now look at the return on investment as an assured tool of financial security.”

It will be remarkable to see that whether the new Tenancy Act, 2019 will redefine the relationship between the tenant and landlord.

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