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Model Tenancy Act

Updated: Jun 18, 2021

New law towards reforming country’s rental market.

Its key features are:

  • A tenant will give a maximum of two months’ rent for residential property and a maximum of six months for commercial property as security deposit

  • A written agreement between the landlord and tenant is mandatory

  • The landlord cannot revise rent in between the rental period and three months’ notice has to be given before the revision

  • The landlord is responsible for fixing structural damages to the property and undertaking whitewashing, painting of walls, doors

  • The tenant is responsible for repairs including kitchen fixtures, glass panels, maintenance of open spaces; must notify the landlord of any damage to the premises on an urgent basis

  • The landlord cannot evict tenants during the contract period and stop providing essential services such as power and water

  • The landlord is entitled to double the rent for two months and four times thereafter if the tenant occupies the property even after the termination of tenancy

  • The tenant can sublet premises only with the prior consent of the landlord

  • Appointment of a rent authority with the previous approval of the state or the union territory

  • Setting up of rent courts by states to settle disputes within 60 days of receiving the complaint

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