10 mn vacant homes may find takers as Cabinet approves Model Tenancy Act

New law makes renting out urban or rural property without a written agreement illegal, seeks to balance the interest of homeowners and tenants

The union cabinet today approved the Model Tenancy Act with an aim to balance the interest of homeowners and tenants. The act, which is now open for enactment by states and union territories, will encourage homeowners who were wary of renting out their properties under the older tenancy and rent control laws, the government said.

Under the new act, renting out any property in urban or rural areas without a written agreement is illegal. This will help formalise the shadow market of rental housing, unlock vacant properties, increase rental yields, and reduce procedural barriers in registration.

While it restricts eviction