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<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Union Cabinet has approved the Model Tenancy Act (MTA) to streamline the process of property renting and boost the rent economy.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Union government had brought the Model Tenancy Act (MTA) in 2019 so as to create a separate economy based on rent collection in real estate sector.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
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<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Large number of houses in urban areas have not been rented. This is because owners fear of repossession.</span></span></p>
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<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The aim of the new act is to bring accountability and transparency in the existing system to ensure that interests of owners and tenant are maintained.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The states have been given the option to adopt this legislation as it is or modify their existing ones to bring them on par with MTA.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government wants to increase potential of this sector by reducing procedural barriers in registration, increase rental yield, increase discipline and transparency.</span></span></p>
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<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Application of this law</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When this act comes into enforcement, no individual is allowed to collect rent for their properties without agreement in writing.</span></span></p>
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<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This act has been applicable prospectively and earlier rents and tenants will not be affected. Both urban and rural areas will be covered by this act.</span></span></p>
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<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>New changes</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A grievance redressal mechanism will be set up by the state governments. It will include rent court, rent authority and rent tribunal.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rent court and rent tribunal have to dispose of the cases undertake within 60 days. Monetary ceiling for amount of rent to be collected has not been set.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The premises can be sublet by the tenant with the prior permission of the landlord. During disputes with landlord, the tenant has to pay rent until resolution.</span></span></p>
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<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Provisions</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Owners can collect deposit from tenants but it should not exceed the two months’ rent for residential properties and one month in case of non-residential ones.</span></span></p>
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<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Arbitrary removal of tenant cannot be carried out during the agreement period except in the way prescribed in the act.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Landlord can impose double monthly rent for two months and four time monthly rent thereafter if tenant refuses to vacate the property if agreement has been broken.</span></span></p>
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'title' => 'Model Tenancy Act',
'description' => '<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Issue</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Union Cabinet has approved the Model Tenancy Act (MTA) to streamline the process of property renting and boost the rent economy.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Background</strong></span></span></p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The Union government had brought the Model Tenancy Act (MTA) in 2019 so as to create a separate economy based on rent collection in real estate sector.</span></span></p>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Details</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Large number of houses in urban areas have not been rented. This is because owners fear of repossession.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The aim of the new act is to bring accountability and transparency in the existing system to ensure that interests of owners and tenant are maintained.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The states have been given the option to adopt this legislation as it is or modify their existing ones to bring them on par with MTA.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The government wants to increase potential of this sector by reducing procedural barriers in registration, increase rental yield, increase discipline and transparency.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Application of this law</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">When this act comes into enforcement, no individual is allowed to collect rent for their properties without agreement in writing.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">This act has been applicable prospectively and earlier rents and tenants will not be affected. Both urban and rural areas will be covered by this act.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>New changes</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">A grievance redressal mechanism will be set up by the state governments. It will include rent court, rent authority and rent tribunal.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Rent court and rent tribunal have to dispose of the cases undertake within 60 days. Monetary ceiling for amount of rent to be collected has not been set.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">The premises can be sublet by the tenant with the prior permission of the landlord. During disputes with landlord, the tenant has to pay rent until resolution.</span></span></p>
</li>
</ul>
<p style="margin-right:0cm"> </p>
<p style="margin-right:0cm"><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif"><strong>Provisions</strong></span></span></p>
<ul>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Owners can collect deposit from tenants but it should not exceed the two months’ rent for residential properties and one month in case of non-residential ones.</span></span></p>
</li>
<li>
<p><span style="font-size:11pt"><span style="font-family:Calibri,sans-serif">Arbitrary removal of tenant cannot be carried out during the agreement period except in the way prescribed in the act.</span></span></p>
</li>
<li>
<p><span style="font-size:11.0pt"><span style="font-family:"Calibri","sans-serif"">Landlord can impose double monthly rent for two months and four time monthly rent thereafter if tenant refuses to vacate the property if agreement has been broken.</span></span></p>
</li>
</ul>
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