Act to streamline and formalize the rental property market
New Delhi, June 7: The Union Cabinet, chaired by PM Narendra Modi, approved the Model Tenancy Act (MTA), 2021 on 2nd June 2021. As housing is a state subject, the states and Union Territories will have the freedom to adapt the act as it is with fresh legislature, or by amending their existing rental laws. Additionally, district level rental courts, rent authorities, and rent tribunals (a body established to settle a particular kind of dispute) will be set up across the country as a grievance redressal mechanism (to handle complaints).
The Act aims to streamline and formalize the unorganized rental property market, unlock vacant properties, remove exploitative practices, increase rental yields, and bring transparency, accountability, and discipline in the market. It aims to protect the interest of both the owner and the tenant. It will not affect the current tenants and their rights.
As per the 2011 census, more than 1 crore rental properties are unoccupied in the urban areas for various reasons.
