Key takeaways
The Model Tenancy Act, 2021 is a central model law; it applies only where a state enacts or adapts it.
It requires written tenancy agreements informed to a Rent Authority and sets up a three-tier dispute system.
It suggests a security deposit cap of two months' rent for residential premises.
It defines repair responsibilities, entry rules and grounds for eviction.

The Union Cabinet approved the Model Tenancy Act in 2021 to modernise rental housing and balance the interests of landlords and tenants. Because land and housing are state subjects, each state must adopt it through its own law.

Key features

Feature	Model Tenancy Act
Written agreement	Mandatory, informed to the Rent Authority
Rent Authority	Records agreements and handles certain matters
Dispute resolution	Rent Authority, Rent Court and Rent Tribunal
Security deposit	Up to two months' rent (residential)
Rent revision	As per agreement; notice required
Repairs	Responsibilities divided between landlord and tenant
Landlord entry	With prior notice of at least 24 hours
Essential services	Landlord cannot withhold them
Eviction	On specified grounds through Rent Court
Holding over	Higher rent if tenant does not vacate after term

Repairs

The Act lists repairs for each side. Landlords generally handle structural repairs, whitewashing, plumbing replacement and electrical wiring; tenants handle drain cleaning, switch and socket repair, minor fixtures and damage they cause. If one side does not do its repairs, the other may do them and adjust costs as provided.

Eviction grounds

Include non-payment of rent for two consecutive months, misuse, sub-letting without consent, substantial damage and the landlord's need for repairs that require vacating, among others.

Has my state adopted it?

Several states have enacted their own laws based on the model, while others continue with older rent control laws. Check your state's current law. For Punjab, check whether the state has notified new tenancy legislation.

What to do now

Even where the Act has not been adopted, its principles are a good guide:

Use a written agreement. See rent agreement clauses.
Keep a reasonable deposit. See security deposits.
Agree repairs and notice in writing.
End tenancies properly. See ending a tenancy.

Frequently asked questions

Is the Model Tenancy Act applicable in Punjab?

The Model Tenancy Act applies only where a state enacts it. Check the current status of tenancy law in Punjab.

What is the security deposit limit under the Model Tenancy Act?

For residential premises, up to two months' rent.

Can a landlord enter the rented home without notice?

Under the Model Tenancy Act, the landlord must give at least 24 hours' notice before entry.

What happens if a tenant doesn't leave after the agreement ends?

Under the model law, the tenant may have to pay higher rent for holding over, and the landlord can approach the Rent Court.

Related HomeAcross guides

Official sources and further reading

This guide is general information, not legal, tax or financial advice. Rules, rates and procedures change; confirm current requirements with the relevant authority or a qualified professional before you act. Read our editorial policy.

Model Tenancy Act 2021: What It Means for Landlords and Tenants

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