{"id":1897,"date":"2021-06-09T14:08:27","date_gmt":"2021-06-09T14:08:27","guid":{"rendered":"https:\/\/www.propertypistol.com\/blog\/?p=1897"},"modified":"2021-06-10T07:56:27","modified_gmt":"2021-06-10T07:56:27","slug":"union-cabinet-approves-the-model-tenancy-act","status":"publish","type":"post","link":"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/","title":{"rendered":"Union Cabinet approves the Model Tenancy Act"},"content":{"rendered":"\n<p><em>After releasing the first draft in 2019, on 2nd June 2021, the Union Cabinet approved the M<\/em><strong><em>odel Tenancy Act <\/em><\/strong><em>also known as the MTA to aid the rent economy in the estate sector and streamline the process of renting a property. This move will help overhaul the legal work in regards to <a href=\"https:\/\/propertypistol.com\/rent\">renting a house across India.<\/a><\/em><\/p>\n\n\n\n<!--more-->\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-1024x1024.jpg\" alt=\"\" class=\"wp-image-1898\" width=\"391\" height=\"391\" srcset=\"https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-1024x1024.jpg 1024w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-150x150.jpg 150w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-300x300.jpg 300w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-768x768.jpg 768w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1-250x250.jpg 250w, https:\/\/www.propertypistol.com\/blog\/wp-content\/uploads\/2021\/06\/01-1.jpg 1080w\" sizes=\"(max-width: 391px) 100vw, 391px\" \/><\/figure><\/div>\n\n\n\n<p>The Union Cabinet, led by <strong>Narendra Modi<\/strong>, has approved the <strong>Model Tenancy Act<\/strong>. This act will be circulated to all the states\/ union territories for adaptation, the states can then change it as per their suitability. According to the Indian government, the issue of housing shortage can be reduced with this act. With the help of this act, rental housing will be gradually shift towards the formal market.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/#Why_this_Act\" title=\"Why this Act?\">Why this Act?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/#How_it_benefit_landlords\" title=\"How it benefit landlords\">How it benefit landlords<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-5'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/#How_it_benefit_landlords-2\" title=\"How it benefit landlords:\">How it benefit landlords:<\/a><\/li><\/ul><\/nav><\/div>\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_this_Act\"><\/span><strong>Why this Act?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p>The <strong>rental laws in India<\/strong> were restricting the growth of<strong> <a href=\"https:\/\/propertypistol.com\/mumbai\/rent\/flats-for-rent-in-powai\">rental properties<\/a><\/strong> and discouraging owners from renting out their vacant <strong><a href=\"https:\/\/propertypistol.com\/\">real estate<\/a><\/strong> due to the fear of repossession. As a result, more than 1 crore houses were vacant in urban areas.<\/p>\n\n\n\n<p>By bringing accountability and transparency in\nthe existing system of renting <strong>real\nestate<\/strong> and by balancing the interests of both the tenant and the property\nowner, one can unlock their vacant house. <\/p>\n\n\n\n<p>The states can either adopt the <strong>Model Tenancy Act<\/strong> with fresh legislation or they can factor in the new MTA in their already existing rent acts. This new act aims to unlock <strong><a href=\"https:\/\/www.propertypistol.com\/blog\/everything-about-affordable-rental-housing-complexes-arhcs\/\">rental properties<\/a><\/strong>, formalize the shadow market of rental <strong>real estate<\/strong>, ease exploitative practices, increase rental yields, increase discipline and transparency.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_it_benefit_landlords\"><\/span><strong>How it benefit<\/strong> landlords<span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p><strong>To discourage overstay of tenants<\/strong><\/p>\n\n\n\n<p>The policy states that tenants would be liable to pay the landlords double the rent for two months and four times the rent in the consequent months, in case they stay after expiry of the&nbsp;rental agreement.<\/p>\n\n\n\n<p><strong>To make eviction of tenants easy<\/strong><\/p>\n\n\n\n<p>Under the model policy, landlords could approach the rent court asking for eviction, if the tenants fail to pay the rent for two months in a row.<\/p>\n\n\n\n<p><strong>To stop sub-letting by tenants<\/strong><\/p>\n\n\n\n<p>Without prior permission of the landlord, the tenant is not eligible to sub-let whole or part of the rented accommodation.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_it_benefit_landlords-2\"><\/span> <strong>How it benefit<\/strong> landlords: <span class=\"ez-toc-section-end\"><\/span><\/h5>\n\n\n\n<p><strong>To stop intrusion of the landlord<\/strong><\/p>\n\n\n\n<p>That landlords march into one\u2019s premises as and when they want, is a common complaint among those living in rented homes. To stop this from happening, the policy states that landlords need to give a written notice, 24 hours in advance, to visit the premises. Also, they cannot make a visit before 7 am and after 8 pm.<\/p>\n\n\n\n<p><strong>To cap security deposit demanded by landlords<\/strong><\/p>\n\n\n\n<p>In cities like Mumbai and Bengaluru, tenants have to pay at least a year\u2019s rent, as&nbsp;security deposit. Landlords in states that adopt the policy would not be able to ask more than two months of rent, as a security deposit.<\/p>\n\n\n\n<p><strong>To regulate increase in rentals by landlords<\/strong><\/p>\n\n\n\n<p>During the entire&nbsp;rent agreement&nbsp;period, landlords cannot hike the rent, unless something giving them the right to do has been clearly mentioned in the rental agreement. The landlord will have to give three months\u2019 notice to the tenant, before increasing the rent.<\/p>\n\n\n\n<p><strong>Landlord responsible for structural maintenance of rented premises<\/strong><\/p>\n\n\n\n<p>While the policy states that both parties will be responsible to maintain the physical health of the rented property, the responsibility of structural maintenance will lie on the landlord.<\/p>\n\n\n\n<p>The <strong>Model Tenancy Act <\/strong>will help facilitate the unlocking of vacant houses. It also aims at creating a sustainable, inclusive, and vibrant rental housing market in the country. By addressing the issue of homelessness, it will enable creation of enough rental housing stock for people of all income groups. <\/p>\n\n\n\n<p style=\"font-size:12px\"><em>D<\/em><strong><em>isclaimer:&nbsp;<\/em><\/strong><em>The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information<\/em>.\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>After releasing the first draft in 2019, on 2nd June 2021, the Union Cabinet approved the Model Tenancy Act also known as the MTA to aid the rent economy in the estate sector and streamline the process of renting a property. This move will help overhaul the legal work in regards to renting a house [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1900,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_eb_attr":"","_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[35],"tags":[109],"class_list":["post-1897","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-laws","entry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Union Cabinet approves the Model Tenancy Act - PropertyPistol Blog<\/title>\n<meta name=\"description\" content=\"Read article on, What the Model Tenancy Act means for landlords and tenants at PropertyPistol Blog.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Union Cabinet approves the Model Tenancy Act - PropertyPistol Blog\" \/>\n<meta property=\"og:description\" content=\"Read article on, What the Model Tenancy Act means for landlords and tenants at PropertyPistol Blog.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.propertypistol.com\/blog\/union-cabinet-approves-the-model-tenancy-act\/\" \/>\n<meta property=\"og:site_name\" content=\"Real Estate Sector Latest News, Updates &amp; 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