The idea is to step up the supply of rental housing stock efficiently, under due oversight, so as to address the housing shortage nationally. An estimated 1.1 crore dwelling units remain vacant, unavailable for rent, because of legal rigidities that stymie the rental housing market across states. The MTA balances the interests and rights of both the owner and tenant, to boost supply of rental housing for various income segments, including informal-sector migrant workers and young professionals.
The MTA mandates tenancy agreements in writing and institutes a robust institutional mechanism in the form of a District Rent Authority, Rent Court and Rent Tribunal. Rent agreements are to be intimated to the Rent Authority, a unique identification number issued for each rent pact, which must then be uploaded on a local digital platform. Security deposits are capped at two months’ rent for residential purposes; at least three months’ notice is to be provided for rent revision, and there are clearcut norms outlined for meeting repair and maintenance costs for both owner and tenant. There is also scope for enhancement of rent in case of refusal by the tenant to vacate.
We do need to incentivise renting. But, in tandem, we surely need to step up public rental housing across income segments, to boost formalisation of the rental housing market. This is imperative, as internal migration will only increase in the years to come. We also need inflation indices for rental housing for both metros and non-metros, to make the market both transparent and efficient