Assam Becomes First State To Adopt Model Tenancy Act 2021

Aug 13,2021

The Assam Legislative Assembly passed the Model Tenancy Act of 2021 on Friday, August 13, and named it the Assam Tenancy Act 2021. Minister for the Department of Housing and Urban Affairs Ashok Singhal said that with this, Assam has become India’s first State to adopt and implement the Model Tenancy Act. The Assam Tenancy Act 2021 will repeal the Assam Urban Areas Rent Control Act of 1972. Under the Assam Tenancy Act, a rent authority will be established to regulate the renting of premises and protect the interests of both landlords and tenants. 

Under the act, there will be no artificial cap in fixing the rent of a premise. Rather the rent of a building is going to be market-driven, which will be determined through a mutual agreement between tenants and landlords.  Further, disputes between landlords and tenants will be redressed faster through the establishment of a rent
authority, rent court and rent appellate at the district level.  It also specifies the duties and obligations of landlords and tenants regarding maintenance of the premises, eliminating any ambiguity in this regard. 

The Model Tenancy Act 2021:
The Union Cabinet on June 2, approved the circulation of the Model Tenancy Act to all states and Union
Territories for adoption. The Act is aimed at amending the existing rental laws of states to their suitability and
enacting fresh legislation. It aims to help overhaul the existing legal framework with respect to rental housing
across the country, which would help spur its overall growth. 

Under the act, States will have to set up independent authorities like Rent Court and Rent Tribunals, to hear appeals for matters connected to rental housing. The Rent Court led by an Additional District Magistrate, and the Rent Tribunal headed by a District Judge will be the only authorities to hear and take a decision on the
applications related to disputes between landowner and tenant, or other matters connected to it. However, the applications are required to be disposed within a period of sixty days. 

The Act prevents people from renting or taking any premises without a formal agreement. This has to be informed to the concerned district Rent Authority by the landlord and tenant jointly, within a period of two months from the date of agreement.

Under the 'Rights and Obligations of Landlord and Tenants' section it has been mentioned that in case of disputes over paying of rent, the same shall be paid to the Rent Authority.  

Unless otherwise mentioned in the tenancy agreement, the landlord will be responsible for activities like structural repairs except those damages that are caused by the tenant, whitewashing of walls, painting of doors  and windows, changing and plumbing pipes when necessary, internal and external electrical wiring, and other
related maintenance when necessary. 

Tenants, on the other hand, will be responsible for drain cleaning, switches and socket repairs, kitchen fixtures repairs, replacement of glass panels in windows, doors and maintenance of gardens and open spaces, among others.

Further, the act prevents the landlord or property manager from withdrawing or withholding any essential supply and services in the premises occupied by the tenant.

The Model Tenancy Act also states that a three month’s notice has to be provided to the tenants before hike in rentals. Further, in case tenants stay after the expiry of the rental agreement, they will be liable to pay the landlords double the rent for two months and four times the rent in the consequent months. The landlord may
also approach the Rent Court if rent is not paid for two consecutive months. The Act prevents tenants from subletting the whole or any part of the rented accommodation without prior permission of the landlord. An advance payment of only two month's rent will have to be paid by the tenants as the security deposit, as against the
unreasonable amounts that are being charged now by many.

On the other hand, landlords are to respect the privacy of the tenants. A 24-hour notice must be given by the landlord before visiting the tenant's premises. It aims to form a balance between landlord and tenants, and will not affect existing tenancies.

The Model Tenancy Act will facilitate the unlocking of vacant houses for rental housing purposes. It is expected to give a boost for private participation in rental housing as a business model for addressing the huge housing shortage, thus helping the government to further strengthen its ‘Housing for All by 2022 " initiative. 
Notably, the Assam Government has adapted the Model Tenancy Act 2021 as the Assam Tenancy Act 2021 without any amendment.