Indian rental housing market yield is at just 1% to 3% whereas the developed markets promise a return of about 7% to 8%. There are at present 1.1 crores ready-to-move-in properties or dwelling units in India that are vacant but not available for rent simply because of the legal rigidities in the rental legislations and the worry of disputes and lack of a quick settlement machinery.

To remove all these bottlenecks the Indian government aims to bring about a new legislation, the Model Tenancy Act 2021 that is going to replace the old Tenancy Act 1958. In developed economies like that of the USA, we see that a substantial population of nearly 50% lives in rented homes right from their birth to death whereas in India there is a reluctance from the tenants to stay in rental accommodation for the whole of their lives. Tenancy is simply a hassle in many instances which makes the dwellers look for their own homes and properties.

Although looking for a new home or owning a home is a great proposition and helps one to increase the value of assets and income but at the same time, India being so highly populated there is a continuous dearth of proper housing, especially in the urban settings. In such a scenario there is a constant lack of proper housing in the urban areas but yet there are about 1.1 crore vacant homes left to be occupied which is not a good indicator for the economy with ample scope of reforms. In these contexts, the Model Tenancy Act 2021 seems to bring new hope to the Indian rental market making it more organized with quick resolution of disputes and regularizing the returns.

Despite its positive sides, there are questions in the mind of many like, why is there a need for the new legislation, what protection will it give to the tenants and landlords, to what extent would it be able to mobilize the rental housing markets and would it be able to quicken the resolution of disputes and so on. These are the questions we have dealt with in this article that would be of interest to both the owners and the landlords in which category all of us fall. Let’s have a look!

Dispute settlement mechanism under the Model Tenancy Act 2021

The bottom-line          
Although all the sectors of the economy and the experts welcome this move of the government as this will affect all our lives in some way or the other, there are debating points and contradictions among the stakeholders of various categories. The experts feel that this would undoubtedly go a long way in regularizing the rental markets of India, especially the urban pockets and increase the rental yield and would facilitate the rentals of the vacant property and would help in the vision of “Housing for all” by 2022. At the same time, the experts also feel that too much legislative control is being exercised by stipulating the amount of advance or rental deposits as it would have been more prudent to leave this to the market forces. Whatever may be the bone of contention, there is no doubt that this will help the sector to get more regularized and as tenancy and rental housing is a state subject, much depends on the cooperation of the states in enforcing these newer legislations.

An eco-friendly home may be what you always felt is the need of the hour and it’s certainly one as it is for the future generations that we have to protect our planet. This doesn’t necessarily mean you have to spend a fortune on buying a home in sustainable projects. Going green is a mindset and way of life that you can always adapt by making a little shift in your attitudes and habits.

The investments from the Non-Resident Indians (NRIs) have surged in the FY 2021 to $13.3 billion from the earlier estimate of $13.1 billion according to a report published by 360 Realtors. The same report states that the investment volume has climbed upwards by 6.4% compared to the previous financial year despite the pandemic and the buyers’ sentiments plummeting downwards.

Building and owning a home is certainly a dream come true, but the next important question that you need to answer is whether you have taken the measures to protect it. A home insurance protects you from all impending casualties and catastrophes, saving you not only money but giving you financial protection at times of need rendering you safe as well.

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