Renting a house is a tedious task in many Indian cities. Often there are disputes between tenants and landlords on petty issues like security deposit and upkeep of houses. While tenants face all kinds of discrimination and legal issues while renting, landlords are also very apprehensive at the time of renting out their properties to someone they don’t know anything about. There is a constant fear in landlords of not getting their properties vacated when they need it.
The land is a state subject in India. It means, the state government decides what should be the laws related to the land. Also, till now, India does not have a formal rental market in place. It is often the whims and fancies of both tenants and landlords that rental agreements are drafted and executed. While some tenants face a huge amount of hardships when they try to find a house to live on rent, landlords too are victims at the hands of those tenants who occupy properties to never vacate or pay the rent on time.
This backdrop offers a crystal clear picture of the rental market in India. To streamline the rental market and introduce some logical sense to how rental agreements are made, the Union Cabinet recently gave its approval for the Model Tenancy Act 2021. The new legislation is a step in the right direction to formalise the Indian rental market and make it more transparent and balanced for both the tenant and landlord.
This new law lays down the rights and duties of both the parties and ensures there are no disputes and even if there are later on it seeks to establish a rent authority to address disputes. Now no tenant can say that he or she will not vacate a house or no landlord can throw a tenant without a notice period or unless and until he has a valid reason for the same. One can only take 2 months security deposit at the time of renting his or her property. Many cities like Mumbai, Bengaluru and Delhi NCR face humongous challenges when it comes to rental housing. This will soon be a matter of the past if the true spirit of the law is implemented all across India by the state governments.
The new legislation is now ready for adaption by the state governments. They can bring fresh legislations or amend the existing rental laws to adapt the basic structure from the centre’s Model Tenancy Act 2021.
As per an estimate, more than 11 million houses are lying vacant in India. If we have to create more rental housing, it is important that the rights of all stakeholders are protected. It will create a more friendly atmosphere where more housing units will be available and people will not be afraid to give their properties on rent and tenants too will be happy to enjoy renting a house anywhere in the country.
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