What is Model Tenancy Act, 2021?

Sakera Patel S

Whether you’re looking to buy a home, rent one, or invest in real estate, it’s essential to be familiar with the laws that govern the relationships between landlords and tenants and the rental process. This model tenancy act will protect tenants and ensure landlords are fairly compensated for their services and investments.

In general there will be regulations to make sure landlords don’t take advantage of tenants by charging unjustified fees or prices that are unreasonably high.

These regulations will also help prevent unscrupulous landlords from evicting tenants who have done nothing wrong in order to charge higher rents to new tenants who may be willing to pay more. The Model Tenancy Act 2021 aims to make rent laws more equitable for landlord and tenant, and smoothen the processing of renting a home.

This will give all parties involved with renting real estate, including owners, landlords, tenants, and rental agents the opportunity to come together in an agreeable manner while in the process of renting property.

What is the Model Tenancy Act 2021?

The Central Government, made a proposal to adopt The Model Tenancy Act, which now provides for rent control in India. A model tenancy law is enacted by States and Union Territories at par with each other so that it may be considered as a single unified act.

The Right to Fair Rent (RFR) Bill 2017 was introduced in Lok Sabha on August 9, 2017 by Mr. Hardeep Singh Puri. It aims to make rent laws more equitable for landlord and tenant, and smoothen the processing of renting a home.

This bill seeks to achieve these objectives through three major components: i) It proposes an opt-in regime for all residential premises; ii) It introduces an ‘Adjudicator’ who will hear disputes between landlords and tenants; iii) And finally, it lays down a framework under which compensation can be claimed from landlords in case of certain violations.

This bill creates an independent body called Tenancy Dispute Adjudication Authority (TDA). This authority has jurisdiction over entire area of India. This Authority will provide fast track dispute resolution mechanism within 90 days unlike regular courts where cases take years together before they are resolved.

The Model Tenancy Act, 2021 is designed to make rent laws more equitable for landlord and tenant, and smooths out a process that can be cumbersome. This act will help resolve many of today’s contentious issues between landlord and tenant—and save them time and money.

What Does It Mean for the Landlords and the Tenants?

The real estate market in India is growing exponentially. The real estate Act will be of great help to all landlords and tenants. This act will benefit both parties, with respect to their needs.

A fair and transparent model tenancy act can help ensure that landlord-tenant disputes are addressed swiftly and fairly, making for a much smoother renting experience for both sides. Further, it will ensure effective eviction of tenants who commit serious violations or repeated violations of their agreements, which in turn prevents problem tenants from causing substantial damages to your property or creating other problems with their neighbours.

It also helps if you have a dispute with your tenant regarding rent increases and other issues related to rent; having an established set of guidelines will help resolve these conflicts quickly and without too much hassle.

The text of what is now known as The Model Tenancy Bill is based on recommendations made by a group of government officials, NGOs and representatives from real estate sector. It makes renting easier for tenants. One change that will be especially beneficial for them is that landlords are required to give tenants an advance notice of at least three months before raising rent or renewing a lease contract.

This applies in cases where a tenant has been living in an apartment for over two years, or when the house rents for more than Rs 2 lakh per month.

Another big change is that, after completion of six years of tenancy, a tenant can now move out only with giving three months’ notice and paying one month’s rent as compensation to their landlord.

On a Final Note

The model tenancy act of India is a progressive law that can greatly improve quality of living for both landlords and tenants. It makes it easier to rent homes, and make fair renting more common across cities. For landlords, it protects them from abusive or neglectful tenants.

For tenants, it provides clarity on their rights and protections. The model tenancy act makes leasing property a much smoother process; one that both parties are happy with—because they know what’s expected of them from day one. With fewer surprises in store for either side, everyone wins!


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