New Delhi, July 19, 2019:
Dhiraj Jain, Director, Mahagun Group
There are many challenges and prevalent practices have to be kept in mind so as not to face hurdles for implementing the Act. There are practices like multiple month advance rent which will be difficult to wipe out as it shows the fears of landlords. The Act and the system has to give assurance to the landlords that in case of disputes the process of solving the dispute will not be taxing. Having said that it is a good move and let us hope that it will streamline the rental markets, which forms a large part of Indian housing segment.
Harinder Singh Hora, MD, Reach Group
There was an urgent need of the tenancy act as we have seen that many landlords face the problem while renting out their properties. On the same hand, many tenants face numerous hurdles when they seek a home for rent. With India becoming a real estate investment hub, we have many NRIs buying residential properties but they avoid renting it out in the fear that they might face problems when they ask the tenants to vacate the property. Such scenarios leave the infrastructure unutilised and unproductive. This new and refreshed tenancy act will certainly help bring many lakh unsold unit to rental market hence helping fill the demand of houses in every segment, Model Tenancy Act 2019 is at the right time and we might see some good movement in the rental market after it gets implemented by all states.
Vikas Bhasin, MD, Saya Group
Government has laid down the basic policy and now it is up to the states to implement it. Here we have to see how things are handled because same happened during the time of implementing RERA. In states too it takes time as every state has to look into various aspects related to the subject and then take a decision on the ways to implement. Also, it has to be seen that dilution should not happen so that the real purpose of coming up with Model Tenancy Act 2019 is not defeated
Nakul Mathur, MD, Avanta India
The model act looks favorable to both tenants and landlords but there are some challenges that can be faced such as the cap on the security deposit might turn out to be a pain-point for landlords especially in cities where a multiple month’s security deposit is an accepted norm. Another scenario is where tenant defaults on rent payment or damages the property then a two-month security deposit might not cover the expenses of repairs or losses to the landlord in case of non-payment of rent.
As far as impact of model act is concerned, people have to abide by it irrespective of the impact. And normally, people adjust to the laws no matter how discomforting they are. But the government has the responsibility to make sure that any law or act should not affect the lives of people.
Mr. Dhruv Agarwala, Group CEO, Housing.com/Makaan.com/PropTiger.com
“It is very unfortunate that India’s urban population has to struggle to find decent rented accommodation even as millions of properties lie vacant across major markets. The Model Tenancy Act 2019 might be able to change this paradoxical situation. Provisions announced in the model law would make renting a viable option for tenants as well as property owners, if states show the willingness to adopt it in letter and spirit.”
Corporate Comm India (CCI Newswire)