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Model Tenancy Act, 2021

Young, educated job seekers migrating to large metropolises often complain ofu202fonerous tenancy conditions and obscene sums of money as security depositsu202fthat they are asked to fork out to lease accommodation. In some cities, tenants are asked to pay security deposits amounting to 11 months of rent. Visit, https://www.jllhomes.co.in/news/2021/06/29/model-tenancy-act-2021

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Model Tenancy Act, 2021

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  1. Model Tenancy Act, 2021

  2. Features of the Model Law:  • Applicable prospectively and will not affect the existing tenancies. • Written agreement is a must for all new tenancies. The agreement will have to be submitted to the concerned district ‘Rent Authority’. • The law also speaks about roles and responsibilities of landlord and tenants. • No landlord or property manager can withhold any essential supply to the premises occupied by the tenant.

  3. 4. If tenancy has not been renewed, the tenancy shall be deemed to be renewed on a month-to-month basis on the same terms and conditions as were in the expired tenancy agreement, for a maximum period of six months. 5. Compensation in case of non-vacancy: On the expiry of extended period of six months of agreed tenancy period or the termination of tenancy by order or notice, the tenant shall be a tenant in default and liable to pay compensation of double of the monthly rent for two months and four times of the monthly rent thereafter.

  4. Dispute Redressal System: If a dispute emerges between the owner and tenant, they will have to first approach 'Rent Authority'. If any party is not satisfied with the Rent Authority's order, 'Rent Court' can be approached, followed by a final and then 'Rent Tribunal'.

  5. However, as land is a state subject the MTA is not mandatory for the states to implement; states and union territories can adopt the Model Tenancy Act (MTA) by enacting fresh legislation or they can amend their existing rental laws suitably. As the rules are not binding, states would hardly be in a hurry to embrace it given the fact that political expediency may be a factor in consideration.

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