States like Haryana, Maharashtra, and Gujarat are in advanced stages of implementing the Model Tenancy Act to regulate rental agreements.
Understanding the Model Tenancy Act (MTA), 2021
Key Provisions of the Act
- Written Agreements Mandatory
All tenancy agreements must be in writing and registered with the designated Rent Authority to ensure legal enforceability.
Capped Security Deposits
- Residential properties: Maximum of 2 months’ rent
- Commercial properties: Maximum of 6 months’ rent
- Time-Bound Dispute Resolution
Establishes rent authorities, rent courts, and rent tribunals for quicker resolution of disputes between landlords and tenants.
- Clear Definition of Responsibilities
- Landlords: Responsible for structural repairs, plumbing, sanitation, and external maintenance.
- Tenants: Handle daily upkeep and must vacate the premises upon agreement expiry unless renewed.
- No Arbitrary Evictions
Eviction is only permissible under predefined conditions with appropriate notice, offering security and peace of mind to tenants.
- Digital and Transparent Process
Proposes a digital platform for registration, agreement uploads, and dispute tracking to enhance transparency and accountability.
Haryana Implementation Update (as of April 2025)
- Status: Nearing final notification stage
- Progress: Draft rules formulated; public and stakeholder consultations ongoing
- Impact: Expected to strengthen Gurgaon’s rental ecosystem, particularly in high-demand micro-markets like Golf Course Road, Cyber Hub, and New Gurgaon.
