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Bijoy Krishna Paul (not any)     02 June 2011

Model Residential Tenancy Act 2011 to ensure rents at market

 

Model Residential Tenancy Act 2011 to ensure rents at market rates

An overhaul of the legislative set-up could soon result in thousands of tenants now paying monthly rent of Rs 50 or 100 shelling out rentals that reflect market reality. 

The Model Residential Tenancy Act, 2011 prepared by the housing ministry is intended to replace archaic rent control legislations that capped rentals, resulting in landlords getting a pittance for properties in prime localities in metros. 

The draft legislation - which is yet to be adopted by the states - has proposed that once the law is in place, in case of tenancies entered after notification, the rental will be based on an agreement between the landlord and the tenant. 

For existing ones, including those properties where rent was finalized several years ago, there will be a freeze on revision for 24 months. In the 22nd month, the landlord will be able to seek a revision. 
In the absence of an agreement , the landlord will have the option to terminate the tenancy. 

Govt estimates housing shortage of 25 million 

The proposed change in laws on rent control may come as a shock to tenats paying monthly rent of Rs 50 or 100. Though rent control is a state subject, the Centre is seeking adoption of the model law by mandating that only states that enact this law would be eligible for funding under the flagship Rajiv Awas Yojana that has a budgetary allocation of over Rs 800 crore in 2011-12 and comes with other benefits such as interest relief. 

The Centre is of the opinion that the current legal system has discouraged landlords from reinvesting in their properties as rentals have been kept artificially low. The ministry has estimated a housing shortage of around 25 million in the country and by allowing for increase in rentals, the government in encouraging property owners to let out their properties and ease the deficient supply of dwellings. 

The ministry is drawing inspiration from the Jawaharlal Nehru Urban Renewal Mission that got several states to repeal the Urban Land Ceiling and Regulation Act (ULCRA). Under the scheme, central assistance was contingent upon states repealing the law. 

There are also clauses that have been built in to protect the interests of tenants. To check against arbitrary hike in rents , the revision would be based on terms set out in the agreement signed by both the parties. In addition, a three-month written notice has to be given before the increase. 

Source: https://economictimes.indiatimes.com/markets/real-estate/news-/model-residential-tenancy-act-2011-to-ensure-rents-at-market-rates/articleshow/8657898.cms

 



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 4 Replies

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     02 June 2011

such lagislations are not possible in democaries just paper dreams.

YOGESHWAR. (ADVOCATE HIGH COURT-criminal /civil -youract@gmail.com)     02 June 2011

In USA which is a most libral democary one Juge gave judement to enforce such lagilstaion , please burnt the court and the judge just eascaped. The sons of landlord were publicly  hanged and the landlord himself died penneless , holes in the shoes going from one law maker to other for enforcement of law which they made.

ggrao (owner)     08 July 2011

TENANCY ACT 2011 A.P INDIA HOW TO IMPLEMENT TO PREVENT LOSS / TO VACATE TENANTS IF THEY DONT VACATE OR PAY RENT ?

I DR.GANGADAR STAYS IN HYDERABAD A.P, MY PROPERTY IS IN VIJAYAWADA A.P. MY ILLEGAL TEENANTS STAYING WITH A EXPIRED RENT AGREEMENT 7 YEARS BACK., ARE NOT PAYING RENT SINCE 7 YEARS IRRESPECTIVE OF VERY HARD TRY OF US. THEY ARE NOT VACATING EVEN BY ADVOCATE NOTICES. NOW PRESENT RENT IN OTHER SHOP OF SAME BUILDING IS 18,000/ - RS. PER MONTH, BUT THEY FILED A FALSE CASE ON ME (BUILDING OWNER) THAT THE RENT IS ONLY 1000/- PER MONTH, AND PAYING RENT IN COURT. WE TOO FILED A CASE THAT RENT IS 11,000 TO 18,OOO RS. ATLEAST 1.5 YEARS BACK. BUT WHEN THE COURT WILL GIVE DECREE? NOW NEW TANANCY RULES OF SUPREME COURT 2011, BY DALVIR SINGH HAS COME & MINISTRY OF HOUSING TENANCY RULES GUIDELINES HAVE COME 2011. BUT HOW TO IMPLEMENT THEM ?. IF TENENT IS rent  DEFAULT FOR 4 MONTHS THEY CAN BE VACATED, BUT I AM NOT ABLE TO VACATE THEM BECAUSE THEY BUY MY ADVOCATES ALSO. MY ADVOCATES  GIVING FALSE DIRECTIONS SO THAT MY CASE GETS DELAYED FOR EVICTION. POLICE TOLD THAT THIS IS A CIVIL MATTER, SO THEY DONT COME TO OUR RESCUE TO VACATE THEM. TENANTS  APPROCHED some  ROWDIES & SOME BAD POLITICAL PERSONS TO SUPPORT THEM. THEY SUBLEASED MY SHOPS AND ENJOYING RENT 18000/- PER MONTH AND PAYING 1000/- IN COURT. COURT IS STANDING AGAINST JUSTICE FOR THIS KIND OF PEOPLE. Court is USEful for Illegal things to make official. SOME LAWYERS IN VIJAYAWADA ARE CHEATING THIER  CLINTS AND TAKE MONEY FROM BOTH SIDES. HOW TO EVICT THEM? WHY SUPREME COURT IS SEEING FUN OF COMMON PEOPLE. WHY BUILDING OWNERS LIVING IN POOR CONDITIONS IN INDIA & TENANTS ENJOYING THE PROPERTIES THAT DOESNOT BELONG TO THEM?  MY TENANTS:1. B. MADHU 2.SIVAKUMAR    , 3. VIJAYKUMAR. SHOP ADRESS D.NO 27-23-159 GOPALAREDDY ROAD GOVERNORPET VIJAYAWADA A.P INDIA.

 MY NAME DR. GANGADAR EMAIL: doctorhyderabad@gmail.com , m: 09849409258    HELP ME....

 supreme court JUSTICES - PLEASE MAKE REFORMS IN LAW, SO THAT INDIA WILL DEVELOP, GIVE RECOMMENDATIONS TO CENTRAL & STATE GOVERNMENTS TO FOLLOW NEW TENANCY RULES as we are paying huge property tax even though tenants are not paying Rents. . POLICE SHOULD TAKE UP CIVIL MATTERS ALSO, & PROTECT THE CIVIL LAW,  & HELP CIVILLIANS TO VACATE ILLEGAL TENANTS. MAKE REFORMS. IF NOT IT MAY LEAD TO CRIMINAL acts on owners by tenants.

Dipangkar (Business)     15 July 2011

The Current Indian Rent Control Act Got to Change / Balanced. Landlords are seldom finding any Justices  regarding Rent Laws in India. Tenants LOVES TO FORGET that the Landlord is the REAL OWNER of the Building. He has a MAJOR INVESTMENT in it, he has to bear maintainances for it, He has to pay Taxes for it. Also He should receive a REASONABLE RETURN as an earning for this Major Investment..

 

But lately, The Court & as well as the Govt. it viewing the Tenant / Landlord arguments with a different view, hence Landlords are starting to get some Justices...... 

 

 

Originally posted by : Dipangkar

"


Due to The Indian Rent control Act, Indian Landlords seldom receives back suitable returns for their buildings let out on Rents, 

Due to the Rent Control Act, and also for Tanents applying it now-and-then, MOST  LANDLORDS  IN  INDIA NOW-A-DAYS,  ARE  MOTIVATED  TOWARD  KEEPING  THEIR  BUILDINGS / ROOMS  LOCKED  UP  FOR  FUTURE  APPLICATION  BY  THEMSELVES,  RATHER  THAN  LETTING  THEM  OUT  TO  TANENTS.

So you see, the problems that are arising for a Rented-Room-Seeker everywhere in India.

"


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