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Polity & Governance
Pradeep Kumar

03/06/21 09:00 AM IST

Model Tenancy Act

In news

Cabinet approves Model Tenancy Act for circulation to the States/Union Territories for adoption

Aim

The Model Tenancy Act aims at creating a vibrant, sustainable and inclusive rental housing market in the country. 

Significance
  • It will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth. 
  • It will enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness. 
  • Model Tenancy Act will enable institutionalisation of rental housing by gradually shifting it towards the formal market.
  • The Model Tenancy Act will facilitate unlocking of vacant houses for rental housing purposes. 
  • It is expected to give a fillip to private participation in rental housing as a business model for addressing the huge housing shortage
  • Under the Model Tenancy Act, unless otherwise agreed in the tenancy agreement, the landlord will be responsible for activities like structural repairs except those necessitated by damage caused by the tenant, whitewashing of walls and painting of doors and windows, changing and plumbing pipes when necessary and internal and external electrical wiring and related maintenance when necessary.
Source: PIB

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