Draft Model Tenancy Act, 2015

Q: It is an effort by the NDA Government to unlock India's rental markets with Draft Model Tenancy act,2015.

Puneet Laskar,

17th July 2015

Rentals in Mumbai

tenancy rule

nda government

tenancy act 2015

draft model tenancy act 2015

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Replies (5)

Does this apply to Commercial properties in Wall City Area of Delhi?

Sumit, Apartment Resident, Delhi

3rd September 2015

Comment

Good evening everybody,
Also, the security deposit charged from the tenant will be capped at 3 times the monthly rent, which is currently charged more or less 10 times in most of the city like Bangalore and Mumbai. Another plus point for tenants is that they can claim a reduction in rent if the quality of services available to them go down in any way.

Amreesh Murugan,

17th July 2015

Comment

Thanks Harmeet and Govinda.......
Will there be an immediate impact by of Draft Model Tenancy Act?

Balwinder Singh,

17th July 2015

Comment

Impact doesn't happen overnight. A lot will depend on the implementation of the rules mentioned in the Act to help landlord increase rents and get trouble by making tenants evicted.

However, with a long-term view, house owners have everything to gain by letting out their property without having to worry about seeing them vacated.

Govinda,

17th July 2015

Thanks Govinda,
Who will benefit more from new Act, landlord or tenant?

Balwinder Singh,

17th July 2015

Well Balwinder,
Apart from the benefits to landlords, the new draft Act will also works well for tenants. As per the draft, rent ceiling will be fixed in consultation with the state government to avoid arbitrary hikes. In addition to this, landlords won't be able to evict tenant as per their urge and fancies, as there will be a written agreement.

Harmeet Kaur,

17th July 2015

Hi Govinda,
Will this Tenancy Act will change the market dynamics and if so, how? Will the latest draft make things much easier for the landlords who were short-changed by the previous law?

Balwinder Singh,

17th July 2015

Comment

We hope so. The latest draft will make things much easier for the landlords who were short-changed by the previous law. It is an improvement on its outdated pre-existing, the Rent Control Act, 1948. The Rent Control Act was applicable only to tenancy of more than 12 months, had put a cap on rent and made it extremely difficult to throw out a tenant who did not pay the revised rents in spite of living in the same premises for years.

Harmeet Kaur,

17th July 2015

At the same time it will also make sure that landlords are able to charge market rates for their residential or commercial properties, get the rents revised periodically and also get their premises vacated easily without getting into the long-drawn legal activities.

Govinda,

17th July 2015

Good news !!!!!!!!
The NDA government has finally started moving on the Draft Model Tenancy Act 2015. A change is in the Tenancy Act after almost 70 years is a good sign for rental market is concerned. With the Draft Model Tenancy Act 2015, more of India's budget-strong families can expect to have a roof over their heads at a cost that is affordable.

Harmeet Kaur,

17th July 2015

Comment

Yes, it really sounds good.....Thanks to Modi Govt............
Earlier, UPA government started it almost 4 yrs back, but did not complete the process. Housing is a major problem in India, and this Act looks forward to making an impact on it in the most useful way.

Govinda,

17th July 2015