WHY THERE IS A NEED FOR A NEW TENANCY ACT
It had been a long time and the legal tenancy law framework overhaul was long overdue and this is exactly what the Model Tenancy Law seeks to address.
This act also proposes that it will attract private participation in this segment as well.
The current tenancy laws are anarchic and very outdated and need a breath of fresh air and revision as the world has changed but the laws have not according to Suvigya Jain Sanghi.
Also the old and outdated laws are the very reason why there is a huge chunk of housing which is lying vacant in the country which has a huge housing deficit.
Thus the Model Tenancy Act 2019 proposes to address these issues and find a win-win feasible solution for them.
WHAT ALL PROVISIONS DOES THE ACT PROPOSE
These are some changes which the Act proposes:
- The one most important aim that the act proposes is to reduce the security deposit to 2 months’ rent in housing and 1 months’ rent in other properties. This amount is being deemed sufficient as a compensation for the landlord if the tenant fails to pay the rent.
- The Act proposes that the tenant will be penalized if he will not vacate the property within the agreed time period. The landlord can then claim double the monthly rent for two months and 4 times the rent after that as compensation
- Also the act proposes that the landlord cannot refuse in providing basic amenities to the tenants and will have to do the same in any circumstance
- Also the landlord cannot increase the rent before giving three months’ notice to the tenant and cannot increase the rent in the middle of a year for which a rent agreement has been agreed upon.
- Also the Act proposes that a written agreement will be a necessary for any rental engagement or activity for it to be lawful
- The Rent Authority must be intimated within 2 months of agreeing on the rent agreement and the Rent Authority will provide a unique identification number to both parties within 7 days.
- Also the tenant cannot sublet the whole or a part of the rented property without the permission of the Landlord.
These are some major changes which the Model Tenancy Act proposes and will provide a win-win arrangement for both parties involved says Suvigya Jain Singhi.
WHY IT WILL BE GOOD FOR BOTH PARTIES
The Model Tenancy Act will be good for both parties involved as both will be legally safe and secure and there will be less discrepancies and disarrangements and it will become easier and safer for both parties to enter into and engage in a rental arrangement.
All the loopholes and cut corners are being tried to be addressed in this Act and the faster this Act becomes a law then renting will flourish in the country and the housing for all dream of the Government will be successfully implemented according to Suvigya Jain Singhi.