The draft code distributed by the Ministry of Housing and Urban Affairs proposed another arrangement of tenancy laws to empower better command over the agreements of any tenure. Whenever the new tenancy law becomes effective, they may come as a great help to various landowners of metropolia and other significant urban communities where the rents had been fixed decades prior.  

The Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants, 2017, made it obligatory for every Tenancy agreement to be enrolled with the Rent Authority in 90 days. The Maharashtra government set a bar stating that the proprietor can’t build the rent past 15% per annum of the costs.

The new Model Tenancy Act expects to secure the privileges of both; tenants and landowners. As every single tenancy agreement should be informed to the authority of rent, the number of disputes about rental properties will reduce. Introduction of Rent Courts will guarantee that these disputes are settled.

1. Model Tenancy Act

The Model Tenancy Act builds up a framework to arbitrate certain disputes and matters that arise between the two parties faster. The Act covers all private and non-private properties.

Any breach of law by the landowner/landlord or tenant under the new Model Tenancy Act could bring about the issue being taken to a Rent Court.

2.Effects of Model Tenancy Law

Any individual who has taken a residential or non-residential property on lease or rent has to know the new laws. It will also affect the tenancies that were already effective before the law had been passed.

3.Model Tenancy Act Affect Rental and Lease Agreements

After the Act is commenced, there will be new rules to make or re-establish agreements, revise rents, evict the tenants, transfer of tenure rights, and so forth.

4.Agreement registrations 

• All new agreements of rental ought to be recorded as a hard copy. And it ought to be informed to the Rent Authority by the tenant and landowner mutually. 
• New agreements made after the initiation of the Act will be for a period that is commonly settled upon by the landowner and tenant. It should be indicated in the agreement also. 
• The revision terms of rent should be talked about and plainly stated in the agreement. 
• Landlords cannot charge a security deposit that surpasses 3 months of rent. The deposit should be refunded to the tenant, within one month of them vacating the premises.

5.Agreement renewal

• Tenants can approach the landowner to re-establish or extend the time of tenancy under the timeframe agreed upon, as stated in the agreement. 
• In circumstances where the agreement has not been re-established, the term for tenancy has finished and the tenants have not vacated the premises, the tenancy can be renewed on a month-to-month basis. This can be in accordance with the expired agreement for a maximum time of half year/6 months.

6.Rent revision

• Rent can be revised by the terms settled upon in the agreement of tenancy. If not, the landowner is required to give the tenant a written notice, 3 months before the revised rent happen. 
• If the tenant who has received a notice mentioning a rental increase and does not give the landowner a notice regarding termination of the tenancy, it would imply that the tenant has acknowledged the proposed rental increase. 
• Rent during the time of tenancy cannot be re-examined during the term of the tenancy, except if the agreement clearly indicates the measure of rental increase or obviously determines the strategy where the increase will be calculated.

7.Premises eviction

 In specific conditions, the tenant can be approached for the premises eviction: 

• Tenants can be removed on the off chance that they have not paid 2 consecutive months’ rent. 
• If the tenant has vacated the premises with any of the landowner’s assets without acquiring a written agreement from the same. 
• When a tenant keeps on misusing the leased/rented premises even in the wake of accepting a notice from the landowner to stop the misuse.

8.Property subletting

• Tenants cannot sublet/rent the premises that they have rented or transfer the rights in their agreement of tenancy to any other person, except if it is written in the agreement. 
• In situations where the premises are sub-let, the tenant is required to intimate the landowner in a month’s time, in relation to the commencement or end of sub-tenancy. 
• While subletting/renting a portion of the premises, the tenant cannot charge any rent amount that is higher than the amount that is charged by the landowner. 

9.Tenancy transfer on the reason of demise

For a situation of the tenant’s demise, the privilege to the tenure of the private or non-private premises for the rest of the period will be transferred to his/her successor in the accompanying order: 

• Wife 
• Children/’unmarried’ daughters 
• Father or mother
• The daughter-in-law who is a predeceased child’s widow 
• This law applies fair, if the inheritor had been conventionally living or working with the tenant till the time of his/her demise. 

10.Revision of rent in a few other situations

• After the time of tenancy has started and the landlord tries repairing that are not left out in section 15 (ex: addition or basic modification), with the tenant’s consent, the rent can be amended. In such a circumstance, the increase of the rent amount should be settled upon by the landowner and tenant, before the work initiates. The increased rent will be viable from one month after work completion.  
• In a situation where there has been a deterioration of the accommodation or housing services, the tenant can claim lowering down in rent. In the event that there is a contention between the landowner and tenant, the tenant can approach the Rent Authority. The landowner will either need to re-establish the housing service or lessen the amount rented.

11.Existing Rental Agreement Compliant with the New Tenancy Laws procedure

To guarantee that all tenancy agreements are in consistence with the new tenancy laws, tenants and landowners need to follow certain specific guidelines.

12.Every single tenancy agreements should be informed to the Rent Authority

• Written understandings that have been made preceding the authorization of this Act should be educated to the Rent Authority. 
• If there is no written agreement, the landowner and tenant should go into a written agreement with respect to the details of tenancy and inform the Rent Authority. 
• When there is no agreement in writing and on account of a disagreement between the landowner and tenant. Each party requires to independently file the points of interest of the about the tenancy with the Rent Authority. 
• In the absence of a written agreement, the landowner will have the choice to end the tenancy according to provision (a) of sub-area (2) of segment 21

13.Agreement renewal and revision of rent

• All agreements that were made before the initiation of the Act, should be re-established and made by the new terms 12 months after the Act has become effective. 
• While renewing agreements, whenever required the rent payable can be revised. The landowner should intimate the tenant 2 months preceding the revision of rent.

Conclusion

With the introduction of this law, the disputes between landlords and tenants should reduce. And as you might have already gauged, this will also make tenancy agreement   important. Homzhub can help you draft the watertight online rental agreements in Maharashtra, without having to visit an attorney or the SR office.