In the cabinet meeting chaired by Prime Minister Narendra Modi, the Model Tenancy Act was approved. The draft of the Model Tenancy Act will now be sent to the states and union territories. Keeping this act in mind, the states can make a new law related to rental housing. It can also amend the existing Tenancy Act.
The central government says that this will make it easier for people to take a house on rent. In this law many rights have been given to the people living on rent with the landlord. The government has said that this will help in revamping the legal framework regarding renting of houses across the country.
This will lead to growth of the rental housing sector and creation of an inclusive housing market. The central government hopes that after the implementation of this law, a sufficient number of rental houses will be available for people of every income group. With this, vacant houses in housing societies can be made available on rent. Real estate experts say that this will give a boost to the rental housing sector.
Under this law, a separate Rent Court and Rent Tribunal will be set up in each state for speedy settlement of rent-related disputes. Also, an independent authority will be set up in each state and UT for registration of rent agreements.
Any dispute between the landlord and the renter shall be settled within 60 days only by the Rent Court and the Rent Tribunal and not in the Civil Court. According to this law, the landlord will be responsible for repairs in the structure of the house, but if the damage is due to the tenant, then the tenant will have to get it repaired.
Homeowners will have to paint walls, windows and doors, replace water pipes, electrical wiring and other maintenance work. While drain cleaning, socket repair, kitchen, replacement of glass panels of windows etc. will be the responsibility of the tenant.
Apart from residential houses in urban and rural areas, this law will apply to all commercial houses and housing for educational use. But this law will not apply to industrial use. Along with this, this law will not apply to hotels, lodges etc.
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