Model Tenancy Act – What is in favor of Tenant

The object of the Model Tenancy Act 2021

• Protection the interest of the landlord
• Safeguard the rights of a tenant
• Setting up Dispute resolution mechanisms between landlords and tenants for speedy trials.

Establishments covered under Model Tenancy Act

• Any building/ portion of a building that is rented for residential or commercial purposes.
• A hotel/ lodge/ inn/ industrial premises
• Properties that are owned or promoted by the federal/ state governments or union territory administrations, municipal governments, or statutory bodies
• A company/ university/ organization renting out its premises to its employees.
• Religious or benevolent institutions’ properties
• Any other type of structure that the State Government/UT administration has exempted explicitly in the public interest.

How is the model tenancy act beneficial for the tenants?

Provision of providing basic supply/service

During the lease, the landlord cannot refuse to provide any essential supply or service in the premises inhabited by the tenant. The Rent Authority may award the tenant a compensation of up to two months’ rent, to be paid by the person who has withheld the needed supply.

Payment of advance deposit with interest on delay

Suppose the landlord fails to repay any advance payment after exercising his or her right to reclaim the rented premises. In that case, the landlord will be responsible for paying simple interest on the amount not refunded. The rate of simple interest will be set by the state government or the administration of the UT.

Cap in security deposit

This act has capped the limit for security deposits. The owner can only take advance money in the form of security in the following order

1. Not more than two months’ rent for residential premises, and
2. Not more than six months’ rent for non-residential premises.

Prevent irrational market rates

This act aims to make vacant residential units available to potential tenants. An increase in residential supply in the rental market will ensure that rents do not rise irrationally, as they do in Mumbai, where professionals and other migrants are forced to settle in far-flung areas because rentals are too expensive.

Maintenance and repairs

There is a relief as the landlord is responsible for all maintenance and repairs, especially when it comes to whitewashing walls, windows, and doors.

Evacuation and rent hike

Under this act the landlord is prohibited from raising the rent amidst the lease term. Before imposing the rental hike, the landlord must provide written notice at least three months in advance.

Even if the two parties the landlord and the tenant, in the rental contract, do not get along or have a conflict of some sort, the landlord cannot cut off the renters’ water and power supply under the MTA Act.

All these changes will help the tenants against the rising price, security deposits, and maintenance in Mumbai, Pune, and nearby areas where rental rates are touching the skies.

For further reference you can check the following links

Highlights – Model Tenancy Act, 2021

Model Tenancy Act: Implications and benefits for India’s rental housing

The Model Tenancy Act, 2019