The new Model Tenancy Act is a progressive law, keeping the interests of both parties in mind. But since it is a Model Act, it will only take effect if states make changes in existing rental laws.
In Mumbai, even as home prices keep skyrocketing, plenty of flats within the city limits continue to remain vacant. Pic: Vidur Malhotra/Flickr (CC BY-SA 2.0)
Hello there! Apologies for the interruption!
Before you scroll down, please take a moment to read this. For over 15 years, our work has empowered citizens to make cities better. Help keep our work going!
After years of preparation and drafting, the union government has finally given the green light to a Model Tenancy Act (MTA) 2021, which aims to make rent laws more equitable for landlord and tenant, and smoothen the processing of renting a home. Such an act had become necessary to achieve the target of constructing 20 million houses for the urban poor by 2022 under the Pradhan Mantri Aawas Yojana.
The 2011 census had recorded a total of 246.69 million households, of which 68% were rural and 32% urban, leaving 63.67 million urban and rural families without adequate housing. In India, rental homes have mainly been an urban phenomenon. But, approximately 12% of urban houses are vacant, with the share of persons living in urban rental accommodation decreasing from 58% to 27% between 1961 and 2011.
The main reasons are conflicts in landlord-tenant relationships, fear of repossession, non-payment and late payment of rent, damage to property, delay in court procedures and old local rental laws of states which had not been amended for decades. The new law aims to balance the interests of landowners and tenants with speedy and transparent disposal of disputes. It aims to promote an inclusive and sustainable ecosystem for various segments of society including migrants, formal and informal sector workers, professionals, students and urban poor. It also outlines the roles of various stakeholders.
Model Acts are guidelines which states may adopt to best address unique circumstances. The Model Tenancy Act 2021 is one such. Land and land related rights, duties and rules are one of the 66 state subjects mentioned in the constitution, under which states have exclusive rights to make or repeal laws. Hence, states can repeal or amend existing rental laws or pass new laws to regulate rental housing, with MTA as a reference.