Model Tenancy Act

In news- The cabinet gave acceptance to the Model Tenancy Act (MTA). The government had first released the draft of the MTA in 2019.

Key features of the Act:

It aims to bridge the trust deficit between tenants and landlords by clearly delineating their obligations.
It will balance the interest and rights of both the owner and tenant in an accountable and transparent manner.
The Act will encourage the growth of rental housing as it is a preferred option for different segments including migrant workers, professionals, and students.
It will provide a model for urban and rural properties, as well as a template for residential and commercial properties.
It would take people from informal to specific contract arrangements between landlord and tenant.
In case of dispute between landlord and tenant, a rent authority, or a rent court would be available for speedy resolution.
Within two months of executing the rental agreement both landowner and tenant are required to intimate to the Rent Authority about the agreement and within seven days a unique identification number will be issued by the Rent Authority to both the parties.
A tenant will have to submit a security deposit of two months for residential premises and 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.
A digital platform will be set up in the local vernacular language of the State for submitting tenancy agreement and other documents.
If a landlord has fulfilled all the conditions stated in the rent agreement and 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 and the landlord cannot hike the rent in the middle of the tenure.
A landowner cannot cut power and water supply in case of a dispute with the tenant.
The Act states that a landowner cannot enter the rented premises without 24-hour prior notice to carry out repairs or replacement.
Landlord will be responsible to repair structural damages and undertake measures like whitewashing walls and painting doors and windows.