Karnataka is contemplating to adopt the Union government’s Model Tenancy Act in order to end the continuous tenant-owner disputes besides revitalising the rental housing sector, state Revenue Minister R. Ashoka said here on Thursday.
After reviewing revenue department schemes here, Ashoka told reporters that the state government wants to simplify the existing Tenancy Act. “This is still at a proposal stage and we are also expecting feedback from the public before officially introducing this in the state,” he said.
He added that earlier, the state government had a role in fixing the rent but with the new Act the state government now aims to propose that the rent should be fixed by both the parties – owner and tenant. “After reaching an agreement, they need to finalise it legally and upload it onto the government’s portal,” he explained.
The minister said that most house owners, especially in Bengaluru, ask tenants to cough up 10 months of rent as advance. “If the proposed new tenancy law is adopted, owners cannot collect more than two months’ rent as advance,” he said.
According to the minister, the Act gives supremacy to the rental agreement and stipulates the formation of a Rent Authority to address disputes.
He added that in the event of any dispute, the concerned officials will resolve it within 60 days.
“We are also mulling that the disputes should be settled within 60 days and even if anyone plans to postpone the hearing, there won’t be more than three hearings,” Ashoka claimed.
He observed that wary of disputes, many owners keep their houses vacant without renting them. “At present at least two to three lakh houses are vacant in Bengaluru alone. We hope that once this Act is implemented, owners will get their tenants while the rents may also come down,” the minister explained.