The draft Model Residential Tenancy Act ensure Rents at Market Rates
The Centre is of the opinion that the current legal system has discouraged landlords from reinvesting in their properties as rentals have been kept artificially low. The Model Residential Tenancy Act, 2011 prepared by the housing ministry is intended to replace archaic rent control legislations that capped rentals, resulting in landlords getting a pittance for properties in prime localities in metros. If the new law goes through, the tenants will have to pay rents at nearer to market rates.
The draft legislation has proposed that once the law is in place, in case of tenancies entered after notification, the rental will be based on an agreement between the landlord and the tenant. For existing ones, including those properties where rent was finalized several years ago, there will be a freeze on revision for 24 months. In the 22nd month, the landlord will be able to seek a revision. In the absence of an agreement , the landlord will have the option to terminate the tenancy. In addition, a three-month written notice has to be given before the increase.
The proposed change in laws on rent control may come as a shock to tenats paying monthly rent of Rs 50 or 100.These tenants will have to pay rents at nearer to market rates resulting in landlords getting a pittance for properties in prime localities.
Though rent control is a state subject, the Centre is seeking adoption of the model law by mandating that only states that enact this law would be eligible for funding under the flagship Rajiv Awas Yojana that has a budgetary allocation of over Rs 800 crore in 2011-12 and comes with other benefits such as interest relief.
The ministry has estimated a housing shortage of around 25 million in the country and by allowing for increase in rentals, the government in encouraging property owners to let out their properties and ease the deficient supply of dwellings.
The ministry is drawing inspiration from the Jawaharlal Nehru Urban Renewal Mission that got several states to repeal the Urban Land Ceiling and Regulation Act (ULCRA). Under the scheme, central assistance was contingent upon states repealing the law.
andlords getting a pittance for properties in prime localities, Delhi NCR, Delhi Property, Housing ministry, Housing shortage in India, Landlord-Tenant, Model Residential Tenancy Act, Model Residential Tenancy Act 2011, Properties in prime localities, Rental trend
I strongly support for this act,its benificial for both landlord as well as tenent.Impliction of this act may reduce lots of court matter between landlord and tenent.
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The existing Rent control Act is the curse to the society .The greedy tenants do not increse the rent in accordance of the inflation and files the false suit .the counsels of both sides earns alot by making the befool to their parties and after filing the filing tenants takes relaxation atleast to 10 ti 20 years .only once time court fee incurres a great loss to exchequer The counsels of both parties try to make corrupt judiciary .Some times tenancy case lead to sever crime .the proposed act protects the interest of both landlord and tenant .The lanlord ensures that after fixed time his property will come back and tenant aslo can enjoy the tenancy right for a certain period without any litigation .The rent will inflate itself after the certain period .by adopting Modal Residential Tanancy Act wiil promote the builders to solve the housing problems .only !5of the Tenants are paying the rent Rs.50/-to Rs.100/-and they adamant not to increse the rent inspite of direction of Hon.Supreme Court To solve the housing problem the govt.should not think about a negligile no.of tenants The proposed Act.is framed by Housing and Urban Ministry keeping in mind the transparancy and to minimise the litigation .at present generally landlods and tenants enter into agreement for a certain period at above rent beyond the Rent Controller.The Rent controller generally gives the dates and does nothing only harrass both the parties and poor landlords are complled to sel their property at a meagre value.
Modal Residency Tenant Act,2011 is very much benificial to owners and The thousans of tenants .it will minimise the litigation to zero.The main problem of housing will be solved The house buolders will bw encouraged to buil the new building as the enactment ensures the owner/builders to get market rent and increment every third year and all the chrges will bw paid by the tenant i.e the user of the property and the ownershio will be re-pass automatically after five years if the tenant does not agree to pay market rent The burden of generally false cases will become less and the post of the Rent Controller will be eliminated and if there is any dispute ,The Tribunal will be competent where minimum time is taken to settle the dispute It is a great gift to both tenant and thhe owner.Every State should Notify as early so that the litigation where tenants and owners have/had no agreement in writing will be deemed closed automatically.The agreement in writing will check both tenants and landlords to speak lie before the Tribunal.
The Modal Residency Tenant Act,2011 is very much benificial to owners and thousans of tenants .it will minimise the litigation to zero.The main problem of housing will be solved The house buolders will bw encouraged to buil the new building as the enactment ensures the owner/builders to get market rent and increment every third year and all the chrges will bw paid by the tenant i.e the user of the property and the ownershio will be re-pass automatically after five years if the tenant does not agree to pay market rent The burden of generally false cases will become less and the post of the Rent Controller will be eliminated and if there is any dispute ,The Tribunal will be competent where minimum time is taken to settle the dispute It is a great gift to both tenant and thhe owner.Every State should Notify as early so that the litigation where tenants and owners have/had no agreement in writing will be deemed closed automatically. Agreement in writing willcheck both tenant and owners to speak lie before the tribunal
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