New Delhi: The Union Cabinet on Wednesday approved the Model Tenancy Act, a move that will help overhaul the legal framework of rental housing across the country and will supposedly spur its overall growth. According to the government officials, the Act will facilitate the unlocking of vacant houses for rental housing purposes.
Moreover, the Model Tenancy Act would also help in overhauling the legal framework with respect to rental housing across the country, the Centre said in a statement.
“The Union Cabinet, chaired by Prime Minister Shri Narendra Modi, has approved the Model Tenancy Act for circulation to all states/union territories for adaptation by way of enacting fresh legislation or amending existing rental laws suitably,” the statement stated.
“The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness,” it stated.
The government said the Act would facilitate the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
“Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market,” the Ministry of Housing & Urban Affairs said.
It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage, it added.
The Model Tenancy Act addresses factors like the need to have a formal rent agreement, how much security deposit should be paid, rate of rent increase, and grounds for eviction.