Model Tenancy Act, 2021

This Act is proposed to overcome the archaic nature of current rental laws in the country as they do not address the relationship between the lessor and lessee realistically and practically.

Important Features of the Act: The Model Act requires the landlord and tenant to sign a written agreement which specifies the rent, period of tenancy and other related terms. Security deposit is capped at two months’ rent for residential premises, and six months’ rent for non-residential premises.

• Conditions for eviction of tenant under the Model Act include: refusal to pay agreed upon rent; failure to pay rent for more than two months; occupation of part or whole of premises without written consent; and misuse of premises despite a written notice.
• Rent Authorities and Rent Courts may be established by the District Collector with the approval of the state government. The state or union territory government may establish a Rent Tribunal after consulting with the jurisdictional High Court.