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* No More pocket draining security deposits

For a renter, this security deposit used to be a huge worry, as some owners in metropolitans like Mumbai and Bengaluru used to urge them to pay amounts to the sum of as much as a year, as a security deposit. But, the practice of charging high-security deposits may now be restrained, as the Draft Model Tenancy Act, has systemized it, to help the tenants. From now on security deposit is predetermined at two months’ rentals for residential real estate. Additionally, when the rented property is vacated, the law regulates that owners or landlord of the property need to return the entire security money within a one-month period.

* Increased residential supply

As the Act in the tenancy ground would work on unlatching idle residential units and make them accessible to potential renters, improved residential supply in the rental market will guarantee that rent does not upsurge unconditionally as is the case currently in Mumbai where professionals and other migrants need to settle in far-off locations, the reason being rentals there are not pocket friendly.

* Increased Tenancy by NRIs(Non-Resident Indians)

As the MTA comprises several of the owner or landlord-friendly regulations in respect of transfer of rent agreement, property damages, and sub-letting (i.e. the tenant cannot sub-let part or whole of the property to someone else), the move will help in urging NRIs to lease out their homes in India. So, probably NRI-owned homes which until now remained vacant and unutilized will be available in the rental space for the tenants.

* Fuss-free maintenance

There is a sigh of relief for the tenants as all the maintenance and repair work is to be ministered by the landlord. This includes the whitewashing of walls, windows, and doors. For carrying out any repair or replacement at the rented property, the landowner needs to give prior notice of 24 hours.

* Regulated rental charge

The tenant can live stress-free as the landlord cannot hike the rent whenever he likes. Before enforcing the rental inflation, the landlord would have to give written notice at least 3 months prior to the revision of rent. Besides that, due to inadequate residential supply, the rent in cities such as Mumbai are skyrocketing, forcing the tenants to settle down in far-flung areas with the unavailability of good infrastructure.

Nonetheless, the Tenancy Law would unlatch the residential inventory lying vacant within the city realms and would help the future tenants find residentials in suitable locations.

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