TEN Things Tenants Must Know About Draft
Model Tenancy Act..!
Many Indians leave their spacious, beautiful homes in Tier-II or
-III cities and shift to tiny rented accommodations in metropolitan cities, for
better employment or education prospects.
Worse, they have to shell out a large part of their earnings on
housing, as landlords sometimes demand very high rent, given the premium on
living space in metros.
At the same time, even landlords are hardly better off. While
renting houses to
perfect strangers poses major security concerns, they are usually unsure if
they are getting the right value for their rental property.
With urbanisation picking up pace and rental housing gaining
momentum in India, it was imperative that the government revisited the policy
to regulate the rental housing economy in the country – rent control
regulations were imposed in India between 1914 and 1945 and had become obsolete
over time.
Therefore, the Centre last year came up with the Draft Model Tenancy Act,
2015.
PropGuide takes
a look at key features of the draft and how they might change the way houses
are rented in the country:
1. 1.Refund
of security deposit..!
According to the draft, it will be unlawful to charge a security
deposit three times the monthly rent, unless an agreement to this effect has
been made. A landlord will have to return this amount within a month of
the tenant vacating the premises.
2. Rent increase after renovation..!
The
draft says both the landlord and the tenant will be responsible for maintaining
the building structure. In case your landlord makes structural improvements to
the building, he will have the right to increase the rent amount one month
after the renovation work is compete. This, however, has to be done in
consultation with the tenant.
On the other hand, a tenant can ask for a
reduction in the rent amount if there has been any deterioration in the
building structure after the rent agreement came into force and the landlord is
not in a position to renovate. In case of any conflict, the tenant can approach
the proposed ‘Rent Authority’.
3. Landlord cannot come unannounced..!
To
enter the premises for an inspection or to carry out repair work, or even
otherwise, your landlord has to give you a written notice at least 24 hours in
advance.
4. Eviction over non-payment..!
A tenant cannot be
evicted before the period specified in the rent agreement comes to an end,
unless he defaults on payment for consecutive months or misuses the property.
In case you fail to leave the premises after your rent agreement has been
terminated for a default, your landlord will be entitled to charge you double
the monthly rent.
5. Notice period..!
It is imperative
for the tenant to give the landlord a one-month notice before leaving the
accommodation.
6. You can not sublet..!
As a tenant, you
can’t partially or wholly sub-let the premises without a written permission
from your landlord.
7. Rent agreement transfer in case of tenant’s death..!
What if a tenant dies while the rent agreement is still in
force? According to the draft, the agreement comes to an end as soon as the
tenant dies.
However, if the person has been living at the rented accommodation
with his family, the tenancy rights would pass on to his wife or children.
8. Civil courts not to hear rent disputes..!
The draft has tasked the Centre, states and Union
territories to set up rent courts, rent authorities and rent tribunals to act
on the principle of “natural justice” and not be guided by any pre-set rules.
According to the draft, these courts alone will hear the disputes arising
between a landlord and a tenant. This means you can’t approach a civil court on
rental disputes.
9. Open to logical interpretations..!
The
draft, which aims to “establish a framework for the regulation of rent and to
balance the rights and responsibilities of landlords and tenants”, clarifies:
“This is neither a Central Act nor a Central Bill to be enacted by Parliament”.
This implies the draft is only a proposal that is not binding. It is open to
“logically suitable” suggestions.
10. Exceptions..!
The provisions in the
draft do not apply to buildings owned by governments, educational institutes,
companies and religious or / charitable organisations.
Src: Proptiger.com
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