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With the motive of opening up the rental housing market of India, the Union Government has recently passed the 'Model tenancy Act' 2021. The Model Tenancy Act aims to enforce a transparent ecosystem for renting premises, minimize litigations and reduce tenant-landlord disputes.
It details their rights and responsibilities as a tenant, as well as the legal obligations of landlords. Every landlord must ensure their tenant(s) have received a copy of the How to Rent guide at the beginning of their tenancy.
A tenancy agreement is a legally binding document as soon as it has been signed by all of the relevant parties. Usually, this is the tenant and the landlord, though it may also include a guarantor if the rental requires one.
Section 11 under the Landlord and Tenant Act 1985 provides an obligation on landlords to maintain the exterior and structure of the rentals property. This includes installations for the provision of water, heating systems, drainage, sanitary appliances and gas and electricity.
The How to Rent guide was introduced by the Deregulation Act 2015 and is required to be given to all new tenancies and all existing tenancies which are renewed. It is also necessary to update it when an existing tenancy where it has been served already becomes periodic and on any renewal.
The landlord can only enter the property with the permission of the tenant, unless it is an emergency situation, and the landlord must enter the property and every attempt has been made to contact the tenant (for example a flood in the property or a fire etc).
The How to Rent guide is an online government document providing advice to current and prospective tenants on the rental process in England and Wales. It details their rights and responsibilities as a tenant, as well as the legal obligations of landlords.
Landlord's obligations under section 11 The landlord must keep in repair the structure and exterior of the dwelling house and keep in repair and proper working order the installations in the dwelling house for the supply of water, gas, electricity, sanitation, space heating, and heating water.
The Model Act limits the security deposit to be paid by the tenant to a maximum of two months' rent in case of residential premises and a maximum of six months' rent in case of non-residential premises. The Model Act prohibits the tenants from subletting or transferring its rights in the tenancy agreement.
It says landlords should fix major problems within two weeks if they pose a threat to a tenant's health and security, such as a broken boiler in the depths of winter.