New tenant and landlord rental laws

Hi,

A1- To promote rental housing in India, the government formulated the Model Tenancy Act, to make the transaction beneficial for both, landlords and tenants. The provisions laid under this model policy, are intended to serve as guiding principles, while drafting rent agreements.

1. The Model Act requires the landlord and tenant to sign a written agreement which specifies the rent, period of tenancy and other related terms. Security deposit is capped at two months’ rent for residential premises, and six months’ rent for non-residential premises.
2. Conditions for eviction of tenant under the Model Act include: (i) refusal to pay agreed upon rent; (ii) failure to pay rent for more than two months; (iii) occupation of part or whole of premises without written consent; and (iv) misuse of premises despite a written notice.
3. The Model Act establishes a three-tier quasi-judicial dispute adjudication mechanism consisting of: (i) Rent Authority; (ii) Rent Court; and (iii) Rent Tribunal.  No civil court will have jurisdiction over matters pertaining to provisions under the Model Act.
4. Rent Authorities and Rent Courts may be established by the District Collector with the approval of the state government.  The state or union territory government may establish a Rent Tribunal after consulting with the jurisdictional High Court.
5. Sub-letting: Under the Model Act, sub-letting is prohibited unless allowed through a supplementary agreement.  The landlord and tenant must jointly inform the Rent Authority about the sub-tenancy within two months from the date of execution of such agreement. 
6. Tenancy period: The tenant may request the landlord for renewal or extension of the tenancy period.  The tenant will be liable to pay enhanced rent if: (i) a tenancy period has ended and not been renewed, or (ii) the tenant fails to vacate the premises at the end of such tenancy.  If the tenant fails to vacate the premises at the end of tenancy, or on termination of tenancy by an order, he will be liable to pay: (i) twice the monthly rent for the first two months and, (ii) four times the monthly rent subsequently till he occupies the premises. 

A2- The new laws are under Model Tenancy Act, 2021

A3- Important sections to address while formulating rent agreement are - rent, period of tenancy and other related terms, have a supplementary agreement in case of engaging in subletting the area. It should also include any conditions the landlord may have in his offer to rent. Other things which should be present are names and signatures of the parties, security deposit, maintainance charges and the rights and responsibilities of the parties involved in the agreement.

I hope this answers your question.

Have a good day!