News: How property owners and tenants will benefit from the Model Tenancy Act-22-01-2021
The Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021, cleared by the state government recently, aims to fix the terms of conditions between a landlord and tenant.
The new year has brought with itself new hope on the real estate industry’s horizon. The Model Tenancy Act, which has been in the works for some time now, is becoming a reality and the state of Uttar Pradesh has already promulgated regulations under Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021.
The Act is likely to be implemented in other states later this year which will not only bring down disputes between the landlord and tenants, but also act as a major driver for the property market across the country.
The Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021, cleared by the state government recently, aims to fix the terms of conditions between a landlord and tenant, including the deliverables by them. It stipulates a proper written deed between both the parties and lays down the duty of the landlord as well as the tenant. It also involves setting up a Rent Authority where the deed has to be registered in a time-bound manner and any dispute arising between the parties will have to be addressed by the Rent Authority within 60 days. Even the annual revision in rents has to be pre-decided between the parties at the time of preparing the deed and the same has be to be mentioned in the rent agreement.
Such provisions in law will reduce friction between property owners and tenants which will help bring about more robustness and dynamism to the real estate market in the country. The property market in the country, which has so far been fraught with disputes, will see more confident landlords and tenants coming forward and transact. This will also help vacant homes, about 1.1 crore houses in urban part of the country in 2011, in getting suitable tenants. Thus, people who already have a home for themselves and are looking to invest in another one for renting purposes will come forward and go ahead to buy another property and rent out with peace of mind.
A Win-Win For All
The Model Tenancy Act will be a win-win for the property owner as well as the tenant. The tenants will be protected from arbitrary or unreasonable hike in rents by the landlord and will benefit in many other ways as the duties of the landlord will also be clearly mentioned in the rent deed signed between them. The landlords will also be better off with the Model Tenancy Act as the tenant will not be able to do or act in a manner not specified in writing in the rent agreement.
The Model Tenancy Act will act as an enabler of a practical, sound and thriving property market like in the US and other developed countries. Although a lot needs to be done to make the Indian real estate market come at par with those of the developed world, at least a beginning has been made via this Act announced by the UP government.
