All you need to know about The Model Tenancy Act 2019 Rent Guide

In order to establish an efficient and transparent process of renting the government has drafted the model tenancy act to balance the interests of owners and tenants by creating fast speedy dispute redressal. The union housing and urban affairs ministry has put the draft if the model tenancy act, 2019 in public for consultation.

Under section 4, the act makes it compulsory for every tenancy to take place in the form of a written agreement that is supposed to be registered with the rent authority within 2 months in together by both the parties.

The rent authority will then give a unique identification number to the party and upload the details on its website in local or state language within one week

As per section 7, the tenant cannot sublet the premises without the consent of the landowner. Section 8-11 deal with issues related to renting. The fixing and rent revision will be governed by the tenancy agreement. If not implied then the notice of rent revision has to be given to the tenant at least 3 months prior to the date on which it becomes due.

The landowner can also increase the rent if the has observed any expenditure on the improvement of the premises with the consent of the tenant. The security deposit to be paid by the tenant shall be determined by the agreement subject to a maximum of two months rent in case of a residential property, and a minimum of one month's rent in case of non- residential property.

Following are the obligations bestowed on the tenant and the landowner:

1.) The landowner has to give an original signed copy of the agreement to the tenant within 15 days after its execution.

2.) In the event of Tenant's refusal to carry out agreed repairs then the landowner shall get the repairs done and deduct the amount from the security deposit.

3.) Tenant is entitled to receive a receipt for every payment made by him under the agreement. If the landowner doesn't accept the rent within two months, the same has to be deposited to the rent authority.

4.) In case the landowner refuses to carry out the repairs the tenant can get the work done and deduct the same from the rent.

5.) If the landowner has engaged a property manager to act on his behalf, he has to inform the tenant about the same.

6.) If the premises become uninhabitable and the landowner has refused to carry out the repairs then the tenant will have the right to vacate the premises after giving 15 days notice in writing.

7.) It also stated that a landowner cannot enter the rented premises without 24-hour prior notice to carry out repairs or replacement.

8.) According to the proposed law, a landowner cannot cut power and water supply in case if a dispute with the tenant.

The rent authority may levy direct compensation on the person responsible for cutting off or withholding essential supply.

The rent authority may levy a penalty to be paid to the landowner or tenant if it finds that the application was made frivolously.

The landowner can make an application before the rent court during the tenancy period. Under section 22, a landowner is entitled to get compensation of double rent for two months and four times of the monthly rent thereafter, for the use and occupation of the premises by a tenant who doesn't vacate the premises after his tenancy has been terminated by order, notice or as per agreement.

Rent authority shall be appointed by the district collector in consonance with the state government. The rent tribunal shall be headed by a principal appellate member and comprise of two other members appointed by the state government in consultation with the high court. The act excludes the jurisdiction of the civil courts and confers such powers in the rent court and the rent tribunal. Moreover, the rent court gives regard to the provision of the transfer of property act, 1882, the Indian Contract Act, 1872, or any other law applicable while deciding matters.