DRAFT MODEL TENANCY ACT

July 15, 2019

The Ministry of Housing and Urban Affairs (MHUA) has released the draft Model Tenancy Act, 2019.

About: 

  • Objective: It aims to regulate rental housing by a market-oriented approach. 

  • Features: 
    • The Model Act lays down the obligations of tenants and landlords.

    • It provides establishing Rent Court and Rent Tribunal to hear appeals and for matters connected” to rental housing.

    • It aim the creation of a rental housing stock for various income segments including migrants, formal and informal sector workers, students, and working professionals, mainly through private participation.

    • To unlock the vacant house it aims to bring transparency and accountability in the existing system of renting of premises and to balance the interests of both the property owner and tenant in a judicious manner.

    • The Act mandates that no person will let or take any rental premises without an agreement in writing, in both urban and rural areas.

    • The security deposit to be paid by the tenant should not exceed two months’ rent for residential property, and should be a minimum of one month’s rent for non-residential property.



  • Need of Act:
    • The Model Act would bring 1.1 crore houses lying vacant (according to Census 2011) into the rental market, and would promote the growth of the rental housing segment.

    • The existing rent control laws are restricting the growth of rental housing and discourage owners from renting out their vacant houses due to fear of repossession.