PATNA: The real estate associations, housing societies and residents hailed the Centre’s Model Tenancy Act (MTA), which was approved recently.
The Act aims at overhauling the legal framework for rental properties in the country to address a massive housing shortage.
Sachin Chandra, president of Confederation of Real Estate Developers’ Associations of India (CREDAI)-Bihar, said the most important point in the MTA was that no person can let out or take on rent any premises without the agreement.
“So, everything will be in black and white.
The advance payment is pre-defined in this Act and tenants will have to submit a security deposit of maximum two months’ rent for residential premises and six months’ rent for commercial property,” he said.
“Now the rent court will define the relationship between landowner and tenant and resolve the issues in time-bound manner,” he said.
CREDAI’s national vice-president Narendra Kumar said once the Act is enforced, rent will become cheaper because more people will start letting out their houses and property.
“Earlier, people were scared of renting out their property due to litigations.
The investment in this sector will also increase,” he said.
Manish Kumar, chairman of Builders Association of India (Patna centre), said the predefined Act will help both the landlord and the tenants.
“The rent court would resolve or dispose of the cases in short time as there are many pending cases in civil court of dispute over the rental issues,” he said.
Ragini Kumari (34), who owns a property in Ashiana Colony, said she never rented out her house fearing that any unruly tenant would never evict.
“Earlier, I had rented out my home but the tenant failed to pay the rent on time.
It would be good if the state enforces the new Act as it may bring transparency in the whole rental process,” she said.
Prince Raj, who is preparing for UPSC civil services examinations, said he had changed four flats in the last two and a half years due to insecurities.
The new Act would create a vibrant, sustainable and inclusive rental housing market, he added.
Realtors & landlords in Bihar hail new tenancy Act
