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Rishi   05 December 2021

New model tenancy act 2021

Hi;

I am wondering what the new model Tenancy Act 2021 could mean for landlords and tenants, which may replace the old tenancy act. As of today, many shop/house owners prefer to keep their house/shop vacant in U.P.

ris



 2 Replies

Kawmini Liyanage   08 December 2021

Hello Rishi!

The Model Tenancy Act applies to buildings that are rented for residential or commercial purposes. However, the following modules for commercial buildings are excluded from the application.  

  • Hotels
  • Lodging house,
  • Inn
  • Outhouses
  • Dharamshala,
  • Property allocated for industrial usage, which includes a garden, garage, or closed parking area,
  • Bare land,
  • Grounds

Since your query focuses on houses/shop owners, this answer focuses on such. 

A property which comes within the described limitation can only be rented through a rent/ tenancy agreement. Which should be in writing and include the following information.

  1. Payable rent
  2. Security deposit - The security deposit has limitations set upon by the Model Act, as in, for residential premises the security deposit should be limited to the rent of two months rent value. and for commercial premises rent of six months. The security deposit should be returned to the tenant at the end of the tenancy period where the landlord can make appropriate deductions depending on the status of the premises and occurrences.
  3. Duration of the tenancy period
  4. Revision of rent; if such, the period within which it should be requested
  5. Fair reasons where the landlord can enter premises. 
  6. Rules relevant to maintaining the premises
  7. Eviction - in the event where the tenant either
  • Fail to pay the agreed rent
  • Failed to pay rent for two consecutive months
  • Without the consent of landlord parting the tenant premises
  • Without consent being obtained from landlord changing structures of the premises.
  • Misuse of the premises, even after notice has been issued by the landlord.

The signed tenancy/rent agreement should be notified to the Rent Authority. This notifying process should be done within two months from the day of signing the tenancy agreement. The informed tenancy agreement should be uploaded to Rent Authority website in the language used in the said area. Which will be granted a unique identification number by the said authority..

The model act prohibits subletting of the rented premises by tenants. And introduces an adjudicating method for the disputes, as well. Therefore, the new model act provides more coverage and protection to both landlord and tenant through the Act and its requirement to register.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

 

 

  

 

Rishi   08 December 2021

Thank you Kawmini. We have a shop on our premises which has been on rent for over 30 years. There are no rental agreements and rent receipts. The tenant father has passed away and the same shop has been handed over to his son and his son has passed the same shop to his brother, considering this he is a "Sikani"  tenant, therefore, we were wondering how we can get our shop back under the new rental act which is still awaiting. We were told that old civil law shall be replaced by the new tenant act.

 

 


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