WHAT IS MODEL TENANCY ACT? Model Tenancy Act The central government on June 3 approved the Model Tenancy Act for circulation among states and union territories, which will adopt the changes by amending their existing rental laws in the country. According to 2011 Census data, there is a demand for 18.8 million homes in urban areas. The proposed reforms are much-desired relief to tenants and homeowners alike. In her Budget speech of 2019, Finance Minister Nirmala Sitharaman said the current rental laws are archaic, as they do not address the relationship between the lessor and the lessee fairly. The approved Model Tenancy Act seeks to address the distortions in the rental market and help modernise it.
The Union Cabinet has approved the Model Tenancy Act. The government says this Act will provide an overhaul to the legal framework on rental housing and encourage private participation.