The Union Cabinet on June 2, 2021 approved the Model Tenancy Act to be sent to the States and Union Territories to enact legislation or amend laws on rental properties.
- As per the government, the act will help overhaul the legal framework with respect to rental housing across the country, which would help spur its overall growth.
- The act will also enable creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
- The model Act, if passed by the States and UTs, would prescribe the norms for lease agreements, deposits, dispute handling and other aspects of rental properties.
- The act will enable institutionalisation of rental housing by gradually shifting it towards the formal market and facilitate unlocking of vacant houses for rental housing purposes.
