Key Highlights of the Model Tenancy Act for Landlords and Tenants
Model Tenancy Act:
The government drafted the Model Tenancy Act to promote rental housing in India, benefiting both landlords and tenants. This policy provides guidelines when drafting NRI rental agreements and other rental agreements, as it includes provisions to consider when preparing the agreement. Once states notify it, this law will replace existing rental laws, potentially making over one crore rental units available.
Does the Model Tenancy Law cover all rent agreements?
The Model Tenancy Act applies to both residential and commercial properties, but it only covers rental agreements exceeding 11 months. For shorter agreements (like those under 11 months), the Model Tenancy Act does not apply. This is important for NRIs using online rental agreement India platforms or eSign rental agreement services, especially if the rental agreement owner is abroad for more than 11 months. In such cases, the agreement to sell using POA and other formalities must comply with the provisions of the Model Tenancy Act.
Also Read: Difference between Rental Agreement and Lease Deed