Rental housing is a complex issue in India – the rent, the conditions of the agreement, the obligations of the landlord, the rules that the tenants must keep, the amount that Prof Ko Koelmakerij as the deposit differ, etc., etc. differ enormously from region to region. The difference is at its sharpest when it comes to comparison between meters such as Bengaluru, Mumbai, Gurugram, Delhi, Chennai, Pune, Kochi and the rest of the country.
With an attempt to reform the rental properties, the central government of India entered the Tenancy Act (MTA) model in June 2021. However, the law is not binding on the States and trade union areas (UTs) as a country a state subject and does not fall under the trade union list. Morover was made clear that MTA could be prospectief and would not affect existing lease contracts.
The MTA has good facilities and can be a game changer for the rental properties of India. It is a balanced piece of legislation that equally protects the interests of those parties – landlords and tenants. With the potential to unlock empty houses for renting the goal and participation in the private sector when tackling the shortage, it might be the fear of the country’s riots.
Important aspets of the action
MTA tries to set up a rental authority in every state and UT and obliges a written rental quality and registration with the aforementioned authority. It is necessary that TNants cannot be deported during the Journal Journal Journal of the rent that would otherwise have been agreed in writing by both parties. Moreover, no real estate manager can withhold essential supplies of the tenant under all circumstances.
Tenants have long submitted the headache of high rental positos, in particular in cities such as Bengaluru, Chennai and Mumbai, where security deposits amount to the rent of one year. MTA puts an end to this trend by closing the security deposits to two months for homes and six months for commercial properties. In addition, at the time of leaving the property, the law obliges the landlords to return the entire security amount within a month – which is good news for tenants.
What’s in it for the landlords?
While the above provisions protect tenants, landlords are also protected by the law. In the event of non-vacancy, for example, the tenant can pay a reimbursement of the double of the monthly rent for two months and four times the monthly rent thereafter.
This provision alone can unlock various empty property, because the rental control acts of different state are largely a pro-rentalant, so that owners can place their property on the rental market. “What if the tenant does not leave the building” You have been a valid question for homeowners, in particular NRIs, who would rather not leave their property than the stress of a tenant who does not leave the property. MTA also tackles the concern of landlords in connection with delays in rent payment, damage to real estate and loss of assets.
If it is adopted uniform throughout the country, the law can herald the much needed changes in the Rental Housing Market of India and make it more structured and organized. It can also lead to increasing transparency and trust between landlords and tenants, making the segment of the rental properties a boost.
