Central Cabinet approved Model Tenancy Act

• The Union Cabinet approved the Model Tenancy Act to be sent to the States and Union Territories to enact legislation or amend laws on rental properties.
• The draft Act had been published by the Union Housing and Urban Affairs Ministry in July 2019 and sent to the States and UTs for feedback.
• The Act aims to bridge the trust deficit between tenants and landlords by clearly delineating their obligations.

• In case of dispute between landlord and tenant, a rent authority, or a rent court would be available for speedy resolution.

Various provisions under Model Tenancy Act:

• The Act makes it mandatory to have a written agreement between the property owner and the tenant.
• A tenant will have to submit a security deposit of two months for residential premises.
• For commercial property, a tenant will have to pay six-month rent.
• The tenant cannot sublet a part of or the whole property to someone else.
• If the tenant fails to vacate the premises on the expiration of the period of tenancy or termination of tenancy, the landlord is entitled to double the monthly rent for two months and four times after that.
• The landowner would give a notice in writing three months before revising rent.
• The landlord cannot hike the rent in the middle of the tenure.