How Does the Rent Control Act Apply?

The Rent Control Act governs all matters regarding the control of rent, landlord rights, and tenant rights in India.

In 1948, the legislature passed a central Rent Control Act that regulates how a property can be let out and ensures that neither landlords nor tenants are exploited. The Rent Control Act in each state differs slightly from one another, but they are largely similar.

The Gujarat government plans to replace the Bombay (now Gujarat) Rents, Hotel, and Lodging House Rates Control Act, 1947 with a similar tenancy act ratified by the central government.

In Gujarat, the proposed act will regulate rental properties, and the unbiased law ensures that owners and tenants are treated equally.

As part of the act, a state-level authority will be formed to regulate rented properties, similar to the Real Estate (Regulation and Development) Act (RERA), which is expected to contribute to the growth of rental markets in the state.

It is confirmed by a source with knowledge of the development that the adoption of the act by the State government will not alter the approved Model Tenancy Act 2021 of the Centre.

Both the owner and tenant are required to sign a written tenancy agreement specifying related terms.

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