Govt approves Model Tenancy Act to unlock vacant houses for rental purposes

The Act proposes to establish an independent authority in every state and UT for registration of tenancy agreements and even a separate court to take up tenancy related disputes.

The Centre, on Wednesday, approved the Model Tenancy Act for circulation among states and union territories, which will adopt the changes by enacting fresh legislation or amending their existing rental laws. 

The housing and urban affairs ministry floated the draft model tenancy bill in 2019. It proposed to establish an independent authority in every state and UT for registration of tenancy agreements and even a separate court to take up tenancy related disputes. 

Other provisions in the Act include limiting the tenant’s advance security deposit to a maximum of two months’ rent and to a maximum of six months for