Assam has become the first Indian state to enact the Model Tenancy Act, according to Union Housing and Urban Affairs Secretary Durga Shanker Mishra.
“Thank you very much to the Government of Assam for passing the Assam Tenancy Bill, 2021 in the Assembly today. Assam has become India's first state to enact the ground-breaking Model Tenancy Act, which opens up a massive rental market,” Mishra tweeted.
The Union Cabinet, led by Prime Minister Narendra Modi, approved the Model Tenancy Act for distribution to all States and Union Territories for adaptation through the enactment of new legislation or appropriate amendments to present rental laws in the first week of June.
“The Assam Urban Areas Rent Control Act of 1972 is abolished with this bill. The new Act would promote the growth and development of a transparent and responsible rental market, as well as strike a balance between the interests of renters and landlords. It will offer an ecosystem for quick conflict settlement," Mishra tweeted.
The Model Tenancy Act will help to institutionalise rental housing by gradually moving it into the official market. The act would make it easier to convert unoccupied properties into a rental accommodation. It is expected to provide personal engagement in rental housing as a business model for solving the severe housing shortage a boost.
“Through different specialised products, the New Act would attract larger investments in the real estate industry. Developing a dynamic rental housing market would support the Hon'ble Prime Minister's goal of #HousingForAll,” Mishra added.
According to the 2011 Census, more than 1 crore houses in urban areas across the country were empty. The present legislative requirements for hiring managers are restricting the growth of rental housing and discouraging property owners from renting out their unoccupied properties for fear of not being able to reclaim them.
“All rentals in rural and urban regions will be written and recorded on Portal from now on. One of the main legislative reforms needed to achieve a $1 trillion real estate market by 2030 is the nationwide implementation of the Model Tenancy Act. During the year when our Nation is commemorating #AzadiKaAmritMahotsav, I would urge all other States/UTs to adopt the Model Tenancy Act published by my Ministry, either by passing new laws or revising current rental laws,” Mishra wrote in the tweet.
For different segments of society, such as impoverished migrants, labour, younger employees, working professionals, and especially college students, rental housing is the most popular option. To ensure prompt resolution of disputes, the Act recommends that each state/UT establish a separate Rent Court and Rent Tribunal to hear appeals for problems relating to rental housing.
This Act will help students, working professionals, and migrant populations find city accommodation by attracting more investors, and more rental housing inventory will help college students, working professionals, and migratory populations find city lodging (particularly in COVID-19-like exigencies). The Act would encourage real estate investment and entrepreneurship throughout the rental period, boosting the real estate, cement, and metal industries, as well as the overall economy.
Source: The Greater India