TEN Things Tenants Must Know About Draft Model Tenancy Act..! - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Saturday, July 02, 2016

TEN Things Tenants Must Know About Draft Model Tenancy Act..!

TEN Things Tenants Must Know About Draft Model Tenancy Act..!

Many Indians leave their spacious, beautiful homes in Tier-II or -III cities and shift to tiny rented accommodations in metropolitan cities, for better employment or education prospects.
Worse, they have to shell out a large part of their earnings on housing, as landlords sometimes demand very high rent, given the premium on living space in metros.
At the same time, even landlords are hardly better off. While renting houses to perfect strangers poses major security concerns, they are usually unsure if they are getting the right value for their rental property.
With urbanisation picking up pace and rental housing gaining momentum in India, it was imperative that the government revisited the policy to regulate the rental housing economy in the country – rent control regulations were imposed in India between 1914 and 1945 and had become obsolete over time.
Therefore, the Centre last year came up with the Draft Model Tenancy Act, 2015
PropGuide takes a look at key features of the draft and how they might change the way houses are rented in the country:
1.       1.Refund of security deposit..! 

     According to the draft, it will be unlawful to charge a security deposit three times the monthly rent, unless an agreement to this effect has been made. A landlord will have to return this amount within a month of the tenant vacating the premises.
 2. Rent increase after renovation..!

The draft says both the landlord and the tenant will be responsible for maintaining the building structure. In case your landlord makes structural improvements to the building, he will have the right to increase the rent amount one month after the renovation work is compete. This, however, has to be done in consultation with the tenant. 

On the other hand, a tenant can ask for a reduction in the rent amount if there has been any deterioration in the building structure after the rent agreement came into force and the landlord is not in a position to renovate. In case of any conflict, the tenant can approach the proposed ‘Rent Authority’.

3. Landlord cannot come unannounced..!
 To enter the premises for an inspection or to carry out repair work, or even otherwise, your landlord has to give you a written notice at least 24 hours in advance.

4. Eviction over non-payment..!

A tenant cannot be evicted before the period specified in the rent agreement comes to an end, unless he defaults on payment for consecutive months or misuses the property. 

In case you fail to leave the premises after your rent agreement has been terminated for a default, your landlord will be entitled to charge you double the monthly rent.    
5. Notice period..!

It is imperative for the tenant to give the landlord a one-month notice before leaving the accommodation.

6. You can not sublet..!

 As a tenant, you can’t partially or wholly sub-let the premises without a written permission from your landlord.

       7. Rent agreement transfer in case of tenant’s death..!

 What if a tenant dies while the rent agreement is still in force? According to the draft, the agreement comes to an end as soon as the tenant dies. 
However, if the person has been living at the rented accommodation with his family, the tenancy rights would pass on to his wife or children.

  8. Civil courts not to hear rent disputes..!

 The draft has tasked the Centre, states and Union territories to set up rent courts, rent authorities and rent tribunals to act on the principle of “natural justice” and not be guided by any pre-set rules. 

According to the draft, these courts alone will hear the disputes arising between a landlord and a tenant. This means you can’t approach a civil court on rental disputes.

  9. Open to logical interpretations..!

 The draft, which aims to “establish a framework for the regulation of rent and to balance the rights and responsibilities of landlords and tenants”, clarifies: “This is neither a Central Act nor a Central Bill to be enacted by Parliament”. 


This implies the draft is only a proposal that is not binding. It is open to “logically suitable” suggestions.

10. Exceptions..!
 The provisions in the draft do not apply to buildings owned by governments, educational institutes, companies and religious or / charitable organisations.


TEN Things Tenants Must Know About Draft Model Tenancy Act..! Reviewed by S. Chitra on July 02, 2016 Rating: 5 TEN Things Tenants Must Know About Draft Model Tenancy Act..!  by   SUNITA MISHRA Many Indians leave their spacious, beautiful homes ...

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