New Delhi: The Union Cabinet has approved a draft ‘Model Rent Act’ which will help amend the existing rent laws or make new ones. The model law will be sent to the states to enact new legislation. The Model Law will help to use uninhabited houses for rental purposes. The government said in a press release that private entrepreneurs can enter the sector as a business model and reduce housing shortages.
Changes and growth in the rental sector can be achieved by creating a new legal framework across the country. The goal is to create a vibrant, sustainable and inclusive rental market. Adequate rental housing should be available for all levels of income. It can solve the problem of homelessness.
Model House/Home Rent Law/Rule:
* Applicable for rental of buildings for residential, commercial and educational purposes. Not applicable for industrial purposes, lodging and hotel management
* Does not affect existing tenants. The terms have no retroactive effect
* Lease agreement is mandatory
* Rent for accommodation is two months and rent for commercial is six months in advance.
* Establish rental authority, rental court and rental tribunal
* Transparent provisions regarding rent increase and eviction of tenant
* Notice of rent should be given in writing three months in advance.
* Do not disconnect electricity and water in case of dispute.
* The landlord should not enter the rented premises to carry out repairs without giving 24 hours notice.
