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Model Tenancy Act to promote rental housing

 Union Cabinet approved Model Tenancy Act (MTA) on 2nd June, 2021 and the same was circulated to all States / Union Territories (UTs) on 7th June, 2021 for adoption for future tenancies by way of either enacting a fresh legislation or amending existing rental laws suitably.

Model Tenancy Act aims to promote rental housing by balancing and protecting the rights and interests of both the tenants and landlords by regulating renting of premises in an efficient and transparent manner. It will also help in overhauling the legal framework with respect to rental markets across the country by providing speedier dispute resolution mechanism framework and is expected to give a fillip to private participation in rental housing.

All States and UTs were consulted while finalising Model Tenancy Act. Views / comments / suggestions of States and UTs on draft Act were duly analysed and suitably incorporated in the final draft.MTA is applicable in both urban and rural areas of the States and UTs.

Land and Colonization are State subjects. Tenancies in States/ Union Territories are governed by their respective rental laws. States and UTs have been advised to adopt MTA by way of eitherenacting a fresh legislation or amending their existing rental laws suitably on lines of MTA in their respective jurisdictions.

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