Kerala Kaumudi Online
Wednesday, 16 June 2021 6.08 AM IST

Rental house and new tenancy act


The Union Cabinet has approved a Model Tenancy Law applicable across the country. At present, there are separate tenancy laws in force in the states but the lack of a unified law persists. The new central law can be enacted by the states as it stands or with necessary changes. The advantage is that the tenancy law will be transparent and the conditions will be strict and people-friendly. The new tenancy law will also help to make the relationship between the landlord and the tenant more harmonious.

The provision of two months' rent in advance is a great relief for those who have to rely on rented houses. Now there is no set number for this. In the case of urban areas, the rent and advance are determined by the owner. Some landlords demand an advance that is equivalent to the rent for six, eight, or ten months. When a home is vacated, a good portion of the advance is
withheld by the owner for a variety of reasons. The provisions of the new law regarding those who have to depend on rental housing will provide the opportunity to live in rented accommodation with peace of mind. You also get protection from frequent rent increases. The condition is that anything related to rental houses must be subject to the agreement. It is also mandatory to register the lease agreement. Another important provision of the new law is that special courts should be set up in all states to resolve disputes between the landlord and tenant over rental buildings. This will help resolve rental cases quickly. Currently, rental cases take a long time to resolve. The requirement of rent authorities in all districts to ensure speedy dispute resolution is also beneficial. These authorities will be required to approve lease agreements. Buildings may not be rented without the knowledge of the authority.

While two months' rent is enough as an advance in the cases of houses, tenants will have to pay an advance equal to six months' rent for buildings for other purposes. Nowadays, many tenants, who rent the building for business purposes, sublet it to third parties and end up failing to evacuate them due to legal hurdles. The new law includes provisions to protect owners from such problems. As per the new law, buildings may not be rented out to a third party without the permission of the owner. Unnecessary disputes can also be avoided with the advent of precise and transparent provisions regarding the hike in rent of any building.

It is estimated that there are over one crore vacant houses across the country. Many people refuse to give their house for rent as they suspect that tenants will not vacate the house if rented out. This is when people wander in cities and towns without access to rental housing. Such problems will be addressed on a large scale if the new tenancy law is gets effectively implemented. The new law will also give a boost to the real estate sector as well. The state can reap great benefits if the shortcomings in the state's tenancy laws are rectified and the law is implemented on the central model.

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