Living In A Rented Apartment? Here’s Why Model Tenancy Act 2019 Matters

Living In A Rented Apartment? Here’s Why Model Tenancy Act 2019 Matters

What the Act States and Proposes

According to the data provided by the government, there are about 1.1 crore premises that lie vacant in urban regions. Many of the landlords do not make their apartments available for rent as they are fearful of the tenants usurping their properties once they are rented out. This new proposal is in hope of making those properties available for the masses to take them up on rent.

Drafted keeping in mind both tenant and landlord rights, the draft also envisions giving structure to an adjudicating procedure that ensures quick redressal of disputes, and establish a Rent Court and Rent Tribunal at the state levels. Apart from that, the draft has also proposed to establish a Rent Authority, which can be appointed by the District Collector.

The Model Tenancy Act 2019 has made it mandatory to make written house rental agreements that need to be registered with the proposed Rent Authority by both parties within the time span of 2 months. The Rent Authority will then ensure that it provides a unique identification number to both the parties and also upload all the details of the tenancy agreement on its website.

Important Aspects to be Aware of

• Rent

What’s more important is that the Act deals with one the most variable elements of rental housing market – Rent! As per the draft, the fixation and the revision of the rent will be regulated in accordance with the tenancy agreement. In case the rent has not been stipulated in the agreement, the notice for the rent revision has to be provided in advance of a minimum of three months to the tenant with regards to the date it becomes due on.

The landlord, however, can incur any expenditure occurred on the improvement of the premise by increasing the rent, all the while ensuring the consent of the tenant.

• Security Deposit

As per the draft of the Model Tenancy Act 2019, the security deposits that the tenants are needed to pay, as determined by the house rental agreement as agreed upon by both parties, can be a maximum of not more than two months’ rent. This shall be the case if the property is residential; in the case of non-residential properties, a month’s rent is the least you can be charged as the security deposit.

If you have more questions or are looking for rental homes feel free to drop us a message. Nimmadhi is here to assist you, you get a home, rental agreement, legal assistance, loan assistance and a lot more.