Model Tenancy Act 2021 – New Law to Amend the Rental Market

The Prime minister and their council of ministers on June 2, 2021, approved the Model Tenancy Act (MTA). This new model act is expected to improve the existing laws. The prime motto behind this act is to reduce the disputes between the two parties by clearly stating the responsibilities between them. Also, it provides a robust process for quick dispute resolution.

Model Tenancy Act

Model Tenancy Act aims is to maintain a balance between the rights and interests of both tenants and landowners to promote rental housing. This Act will ease the opening of unoccupied residential properties for rental purposes. It is permitting to establish suitable rental housing for all income brackets and encourages private companies so that they can keep themselves engaged in the rental housing business.

Here are some provisions of the Model Tenancy Act

  • The security deposit will be for a residential will be two months of monthly rent and six months of monthly rent for commercial premises
  • Tenants will not be responsible for the maintenance of the structural property, it is to be governed by the landlord himself
  • If any disputes occur between owner and tenant, the landlord cannot cut power and water supply to harass the tenant, if the landlord creates something like that then in such circumstances a fine can be imposed on the landlord
  • The landlord cannot increase the amount of rent within the time period stated in the agreement
  • If the rent is increased after the agreement is finished, in such situation three notice in writing is to be given
  • The landlord has to give the occupant a notice of twenty-four hours prior to entering the property or for occupying the property for repair work.
  • In Model Tenancy Act act it forbids the occupants to sub-let the property without the permission and acknowledges of the landlord
  • After the end of the agreement mentioned between the parties, if the occupants refuse to move out or forcefully stay in the property then the tenant must pay double the amount of the rent as a fine for the next two months
  • Once the rent agreement is completed thereafter the landlord will be entitled to a fourfold rent amount, so in case of request in resumption or extension of the agreement, rent will be paid in accordance with the market norms
  • And this time both parties will be involved in the maintenance of the property
  • In addition to this, the tenants cannot change the structural design of the property which is on rent without doing an agreement by the landlord
  • The Act covers future rent agreements; there is no provision for precious rent agreements. The Model Tenancy Act mandates that the agreement shall be in written format and the Rent Authority should be informed of the agreement
  • The act offers a three-level dispute resolution mechanism which includes the Rent Authority, Rent Court and Rent tribunal


So if you are the owner of a property then you must get to know about Model Tenancy Act, or if you are a tenant then also you need to know before choosing a property on rent. Tata Primanti Gurgaon offers rental luxury apartments experience in sector 72.