New Tenant Law: Will Amenities Both The Landlord And Tenant

The Union Cabinet of the Central Government approved the draft Model Tenancy Act. It will now be sent to the states and union territories. This can be implemented by making a new law or by making suitable amendments to the existing tenant law. With this, it is proposed to create related authorities in the states. State governments will also be able to set up rent courts and rent tribunals for speedy resolution of any dispute regarding rental properties. This will help in streamlining the legal framework for renting out houses across the country, thereby paving the way for further development of the sector.

Under this Act, the landlord has to give 24 hours written notice in advance to visit the house for inspection, repair work or any other purpose. The tenant cannot be evicted before the time limit mentioned in the rent agreement unless he has paid rent for two consecutive months or he is misusing the property. A maximum security deposit of 6 months can be taken for commercial property.

 If the tenant is not vacating the house even after the expiry of the agreement, then the landlord will have the right to demand up to four times the monthly rent. The draft states that if the tenant does not vacate the house or shop within the time limit as per the rent agreement, then the landlord will be able to demand double the rent for the next two months and after two months he will have the right to collect four times the rent.

As per the draft, both the tenant and the landlord will be responsible for maintaining the structure of the building. If the landlord makes some improvements in the structure, he will be allowed to increase the rent after one month after the renovation work is over. However, the advice of the tenant will also be taken for this. The landlord cannot withhold essential supplies to the tenant. If the state governments want, they can implement this law in their own place.