Explained: What is The Draft Tenancy Model Act?

New Delhi, July 13: Unable to find a good house to rent in urban areas? Well, the Narendra Modi government has come out with the much-awaited draft model tenancy law that proposes to establish an independent authority in every state and Union Territory for registration of tenancy agreements and even a separate court to take up all tenancy-related disputes.

The Centre's proposed Model Tenancy Law mandates the landowner to give a notice in writing three months before revising rent. The proposed law also advocates appointing district collector as rent authority and heavy penalty on tenants for overstaying.

Key Features:

• Revision of rent between the landlord and the tenant will be as per the terms of the Tenancy agreement
• Landlord has to give a notice, in writing, three months before the revised rent becomes due.
• Landowner has to give an original signed copy of the agreement to the tenant within 15 days after its execution
• In urban cities like Mumbai, property owners tend to take four-five times the rent as security deposit. In a relief for tenants, the draft proposes to limit the security amount to two months' rent.
• Tenants who overstay in premises beyond their agreement would end up paying two times the rent for the first two months and four times afterwards.
• The details of fixing minor and major repairs should already be mentioned in the rent agreement. If the owner then refuses to carry any repair out, the tenant can deduct the amount from the rent.
• If a tenant refuses to carry out repairs, the owner can deduct the amount from the security deposit.
• If a tenant fails to pay the rent for two months, the rent court can be moved. If the tenant pays the dues within a month after the matter has been taken up with the authority, he/she would be allowed to stay.
• The landlord may enter premises in accordance with written notice or notice through an electronic medium given to the tenant at least 24 hours before the time of entry under certain circumstances mentioned in the act. The day and time of entry is between 7.00 AM to 8.00 PM.