Skip to content

Legal and documents

What is Model Tenancy Act, 2021?

The Model Tenancy Act, 2021 is a central model law that states can adopt to regulate renting: written agreements reported to a Rent Authority, capped deposits, and fast-track rent courts and tribunals.

The Ministry of Housing and Urban Affairs circulated the Act to states and union territories in 2021. Land and tenancy are state subjects, so it applies only where a state enacts its own law based on it or amends its rent law to match. Adoption has been gradual.

Its main ideas are: every tenancy is in writing and intimated to a district Rent Authority, the security deposit is capped at two months’ rent for residential premises and six months’ rent for non-residential premises, rent and duration are what the parties agree, the owner gets possession back at the end of the term or on listed grounds, and disputes go to a Rent Court and Rent Tribunal with time limits.

Older state rent control laws continue to govern many older tenancies, especially in Mumbai, Delhi and Kolkata, where controlled rents still exist.

Example

An owner in a state that has adopted a law based on the Model Tenancy Act lets a flat for ₹20,000 a month. The broker drafts the agreement in the state’s format, keeps the deposit within the cap, and files the intimation with the Rent Authority within the deadline. If the tenant overstays, the owner can approach the Rent Court.

Figures are illustrative, not market rates.

Questions about Model Tenancy Act, 2021

Does the Model Tenancy Act apply in my state?

Only if your state has enacted a law based on it or amended its rent law to match. The central Act is a model, not binding by itself. Check your state’s housing or revenue department for its current tenancy law.

What is the Rent Authority?

Under the model law, an officer appointed in each district to receive tenancy agreements, issue a unique identification number and hear certain disputes. Appeals go to the Rent Court and Rent Tribunal.

Sources

Reviewed

Answer your next enquiry in seconds.