The Draft Model Tenancy Act, 2019 proposes to create a legal framework to bring harmony to the landlord-tenant relationships and balance the scale for both the parties. This Act aims to bring stakeholders together and bring rental housing reforms to create an effective rental housing ecosystem in the country
India has nearly 11.09 million vacant housing units in urban areas and legal framework with proposed Model Tenancy Act is expected to help institutionalizing the rental housing market that is so far remains unorganized.
Of the total vacant housing stock, around 78% or 8.64 million units are in 10 states and Union Territories (UTs). Currently, there are 21.72 million urban rented households in India
The addition of over 223 million new urban residents to the cities by 2031 will not be feasible if the rental housing market is not developed. However, in order to truly institutionalise and revive the rental market more thought and debate is required to evolve the Model Tenancy Act into a meaningful, holistic and comprehensive piece of legislation
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Model Tenancy Act, 2019- Intent and Preamble
1. An Act to establish the Rent Authority for regulating renting of premises in an efficient and transparent manner and to balance the interests of owner and tenant by establishing adjudicating mechanism for speedy dispute redressal and to establish Rent Court and Rent Tribunal to hear appeals and for matters connected therewith or incidental thereto
2. Government is committed to provide housing for all by 2022
3. Existing rent control laws are restricting the growth of rental housing segment
4. Balance the interests of landowner and tenant – sustainable ecosystem to various segments of society including migrants, formal and informal sector workers, professionals, students and urban poor
5. to notify the rules for residential and non-residential premises and further to develop the policies to promote balanced rental housing
Arrangement of Clauses under Model Tenancy Act, 2019
| Ch No | Chapter | Section | Contents |
| 1 | Preliminary | 1 to 3 | 1.Short title, extent and commencement.
2. Definitions 3. Not Applicable |
| 2 | Tenancy | 4 to 7 | 4.Tenancy Agreement
5. Period of tenancy 6. Rights and duties of successor in case of death 7. Restriction on subletting |
| 3 | Rent | 8 to 11 | 8. Rent payable
9. Revision of rent 10. Rent Authority to fix or revise rent 11. Security deposit |
| 4 | Obligations Of Landowner And Tenant | 12 to 20 | 12. One set of original agreement to be given to the tenant
13. Receipt to be given for rent paid 14. Deposit of rent with the Rent Authority 15. Repair and maintenance of property 16. Tenant to look after the premises. 17. Entry with notice 18. Information about the property manager 19. Role and responsibilities of property manager 20. Cutting off or withholding essential supplies or services |
| 5 | Repossession Of The Premises By The Landowner | 21 to 28 | 21. Repossession of the premises by the landowner
22. Compensation in case of non-vacancy. 23. Refund of advance rent by the landowner 24. Payment of rent during eviction proceedings 25. Permission to build additional structures. 26. Special provision regarding vacant sites 27. Vacant possession to landowner 28. Provision regarding notice of giving up possession by the tenant |
| 6 | Rent Authorities, Their Powers, Functions And Appeals | 29 to 31 | 29. Appointment of Rent Authority
30. Power and procedure of Rent Authority 31. Appeals |
| 7 | Rent Courts & Rent Tribunals | 32 to 38 | 32. Constitution of Rent Court
33. Constitution of Rent Tribunal 34. Jurisdiction of Rent Court 35. Procedure of Rent Court and Rent Tribunal 36. Powers of Rent Court and Rent Tribunal. 37. Appeal to Rent Tribunal 38. Execution of the order |
| 8 | Miscellaneous | 39 to 47 | 39. Officers and other employees of the Rent Authority, Rent Court and Rent Tribunal
40. Jurisdiction of civil courts barred in respect of certain matters 41. Court fees 42. Members etc. to be public servants 43. Protection of action taken in good faith 44. Power to make rules 45. Laying of rules 46. Power to remove difficulties 47. Repeal and savings |
| First Schedule | |||
| Second Schedule |
Definitions under the Act – Sec 2
- Agreement
- Landowner / Lessor
- local authority
- person with disability
- Premises
- Property Manager
- Rent Authority
- Rent Court
- Rent Payable
- Rent Tribunal
- Schedule
- Sub-Tenant
- Tenant / Lessee
Model Tenancy Act 2019 – Not Applicable to
(a) Any premise(s) owned or promoted by the Central or State or Union Territory Government or Local Authority or a Government undertaking or enterprise or a statutory body or cantonment board;
(b) Premise(s) owned by a company, university or organization given on rent to its employees as part of service contract;
(c) Any premise(s) owned by religious or charitable institutions as may be specified by notification;
(d) Any premise(s) owned by any trust registered under the Public Trust Act of the State;
(e) Any premise(s) owned by Wakfs registered under the Wakf Act, 1995;
(f) Any other building and/or category of building(s) specifically exempted in public interest through notification:
And
this Act is also not applicable to – but does not include hotel, lodging house, dharamshala or inn etc.
Landlord Obligations under the Model Tenancy Act, 2019
1. One original signed copy of the agreement must be given to the tenant within 15 days from the date of agreement – Section 12
2. Receipt/ Acknowledgment to be given for rent paid – Section 13
3. Responsible for structural repairs, whitewashing, changing plumbing pipes and electrical wiring (internal and external) and related maintenance – Sections 9(6), 15(1), Part A of Second Schedule
4. Enter the premises after giving 24
5. Enter the premises after giving 24-hr prior notice to the tenant, timing 7AM-8PM – Section 17
6. Landowner jointly with tenant to inform the Rent Authority in a form prescribed in First schedule within 2 months from the date of agreement – Section 4
Tenant Obligations under Model Tenancy Act, 2019
1. Obtain prior consent in writing from the landowner for subletting the property. Notify all the prescribed details of the sub-tenant to the landowner within 1 month of commencement –Section 7
2. Pay rentals and other charges within the stipulated time – Section 13
3. Not to damage the property, should notify the landowner of any damage as early as possible. Should keep the premises reasonably habitable –Section 16
4. Vacate the premises on expiry of tenancy. If not vacated even after the extended period of 6 months, should pay compensation as prescribed Section 22
5. Responsible for periodic repairs as prescribed such as repairs of kitchen fixtures, geyser repairs etc [Section 15(1), Part B of Second Schedule
Outcome or Future
- Uniformity in Law / Practice
- Accountability and Transparency
- Promote Rental Housing
- Confidence to Private investors
- Standardization
- Speedy Dispute Resolution
- Balance – Land lords and Tenants
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