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RM Reports

Model Tenancy Act 2019: Everything you need to know

– by Arti Chaudhary

As a tenant or a landlord, you must have known about the Model Tenancy Act 2019. If not then no worries!!! Here is the detailed information about Model Tenancy Act (MTA) that everyone should know. Due to opacity in the housing sector, the housing ministry suggested a policy that will be acting as the model act for both states and union territories, just after the finance minister Nirmala Sitharaman affirmed that several reformatory measures will be launched by the government, in order to promote rental housing.

Due to current rent control laws, landowners deny from renting their properties, as the development of the property gets restricted. In consideration of it, policy asserted by securing the liabilities of landowners and tenants, transparency can be brought in the housing sectors. This decision is made to promote rental housing, especially when the government is focusing on the Housing-For-All-By-2022 target.

Before starting with key points and the changes initiated under Model Tenancy Act 2019, let’s consider two important facts that; since land is a state subject under the Indian Constitution, the policy cannot bind on both state and UTs and as the policy does not have any retrospective effects, existing rent agreements stay out of the consideration of the policy.

There are two major changes asserted in the model tenancy act 2019.

Setting Up the Rent Authority:

At present, registration of all rental agreements is done at the office of sub-registrar. But now the policy has asserted that the rent authority would be set, in order to bring transparency and decency in the rental housing segment.

Both landlord and the tenant should prepare a rent agreement, after a clear discussion and unity on the terms and conditions. Then for the registration process, they should move to the authority. The task of the authority would be, setting up a website where all the details of all rent agreements the authority has registered would be updated.

Rapid dispute resolution

The authority will also be working on solving the disputes between landlords and tenants and if they show their disagreement with the order of the authority, they can further go to the rent court. Within 60 days, the court has to dispose of the case, as per the policy.

Key points of the Tenancy Act

  • As a security deposit, the landlord cannot ask for an extra amount than two month’s rent and the deposited money would be refunded to the tenant.
  • In order to enter the rented premises, the landowner must give a notice of 24 hours in advance to the tenant and 7 am to 8 pm will be the visiting time.
  • A landlord cannot increase the rent money within the period of the agreement and a written notice of around 3 months have to be given in order to revise the rent.
  • Without prior permission from the landowner, the tenant cannot sublet the part of the apartment.
  • In respect to the agreement, if the responsibility of maintenance lies on the landowners and if they decline to follow it then the tenants have a right to deduct the amount they are spending on it from the monthly rent. Vice versa, the landowners can cut the money from the deposit.
  • The landowners can knock the doors of the rent court if in case the tenant fails to pay the rent for two months and if the tenant solves the issue with a month of the matter reaching the court, they will be permitted to stay.

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