Government To Bring Model Tenancy Law, Boost To Real Estate & Rental Housing

Government will soon come up with model tenancy law, it will boost rental housing and real estate sector, Durga Shanker Mishra, Ministry of Housing and Urban Affairs (MoHUA) secretary said.

Speaking at the NAREDCO webinar (National Real Estate Development council), Mr. Durga Shanker Mishra said, model tenancy law is ready and is translated in all other languages, as it will have far reaching consequences.

MoHUA has first brought in draft of model tenancy law in July 2019, and states sent their feedbacks until October 31 2020.

Mr. Mishra pointed out that as per 2011 census, 1.1 crore rental houses were vacant, as people are afraid to rent out homes, model tenancy law will address those issues and boost rental housing.

The new model tenancy Act will bind if any trust deficit between tenants and owners, legally delineating obligations of both parties, the Act also proposes rent court and rent tribune to settle disputes, and will help working professionals, students and migrants, said Anuj Puri, Chairman of ANAROCK property consultants.

Provisions announced under model tenancy Act will make renting, a very viable option for tenants and house owners, when adopted by states in letter and spirit, said Dhruv Agarwal, Group CEO, Housing.com, Makaan.com and PropTiger.com.

Once the union government approves the act in the cabinet, it will further to states to adopt, the draft of model tenancy law proposes to appoint district collector as rent authority, it also says, should give notice in writing before revising rents, and penalties on tenants for over staying and violating terms of rental agreement.

This will lead to increase in investments, as it allows return on investment as an assured tool for financial security, Ankit Kansal, co-founder and managing director, 360 Realtors said.