GOVERNMENT APPROVES THE MODEL TENANCY ACT

The Union Cabinet recently approved the Model Tenancy Act for circulation to all the States and Union Territories to enact fresh legislation or amend the existing rental laws.

• Under the Model Tenancy Act, separate rent authorities, courts and tribunals will be set in districts to protect both the tenant and the owner.
• It also mandates submission of a written agreement between the tenant and owner before the concerned "Rent Authority".
• As per the Act, in residential premises, the tenant shall deposit a security amount of a maximum of two months, and in commercial premises, a deposit of security of 6 months shall be made.
• The premises are uninhabitable without the repairs, and the landlord refuses to carry out the required repairs. The tenant may abandon the premises after giving the landlord fifteen days notice in writing.
• Where the premises become uninhabitable for the tenant due to an event of Force Majeure, the landlord shall not charge rent from the tenant until the said premises is restored by the landlord to be inhabitable.
• The Act also clearly mentions that a landlord cannot withhold any essential supply to the premises occupied by the tenant. Also, no tenant can forcefully be evicted during the course of the tenancy agreement unless agreed by both parties in writing.
• The Rent Court may, on an application made to it by the landlord, make an order for eviction if: that the tenant does not agree to pay the rent payable, that the tenant parted with the possession of whole or any part of the premises without obtaining the written consent of the landlord; misuse the premises, etc.
• Under the Act, all necessary activities such as structural repairs, painting, changing of pipelines shall be the responsibility of the landlord  (except damage caused by the tenant) unless otherwise agreed by the parties in their tenancy agreement. 
• The Landlord can also apply to the Rent Court if a tenant refuses to allow necessary changes to the premises.

While approving the Model Act, the Government said that the Act aims at creating a sustainable, vibrant and inclusive rental housing market.

Author: Papiha Ghoshal