New Delhi | Jagran News Desk: The Modi cabinet on June 2 cleared the Model Tenancy Act, 2021 which proposes the rent and duration of tenancy to be fixed by mutual consent between the tenant and the owner through a written agreement. The act has been reportedly aimed to protect the interests of both tenants as well as the landlords.

To increase the rent, the owner must inform the tenant three months before

The revision of the rent cannot be arbitrary, under the act. Although there has not been a financial ceiling to determine the value of increased rent, but the owner must notify the tenant three months before revising the rent. A written notice must be given to the tenant three months before the revision of the rent.

How much security deposit a tenant must pay?

Under the act, a tenant must pay two months of security deposit to rent a residential property. Whereas to rent a commercial property, a tenant must pay six months of security deposit. , The Act states that security deposit shall be refunded by the landlord to the tenant on the date of taking over vacant possession of the premises from the tenant after making due deduction of any liability of the tenant.

Tenant cannot overstay after the end of tenancy period

After the end of the tenancy period as mentioned in the agreement between owner and the tenant, if a tenant refuses to vacate the concerned premises, the owner will be entitled to compensation double the monthly rent for two months. If even after two months of tenancy’s expiration, the tenant doesn’t vacate then under the Tenancy Model Act, the owner will be entitled to compensation four times the monthly rent.

Owner can’t withhold essential supply, must make structural repairs

Under the act, no landlord can withhold any essential supply to the premises occupied by the tenant, such as electricity/water supply.

Unless agreed in the tenancy agreement, the act says, the owner will be responsible for activities like structural repairs except those necessitated by damage caused by the tenant, whitewashing of walls and painting of doors and windows, changing and plumbing pipes when necessary and internal and external electrical wiring and related maintenance when necessary.

Up to individual states to implement The Tenancy Model Act, 2021

Since it is a Model Act, it is up to the individual states to implement the act. Model laws are not binding on the states.

The Union Government on June 2 issued a statement which stated that it has circulated the model law to all states and Union Territories for adaptation by either enacting their fresh legislation or amending their existing rental laws in accordance with the central law.

Posted By: Mukul Sharma