Karnataka will shortly implement a new model of tenancy laws.

Karnataka is considering adopting the Union government’s Model Tenancy Act in order to end ongoing tenant-owner issues while also revitalizing the rental housing market, according to state Revenue Minister R. Ashoka on July 8.

Ashoka informed reporters that the state administration aims to streamline the existing Tenancy Act after analyzing revenue department initiatives here. “This is still in the proposal stage, and we are also waiting for public feedback before officially establishing this in the state,” he said.

He noted that formerly, the state government had a role in determining rent, but with the new Act, the state government now intends to propose that rent be determined by both parties – owner and tenant. “After they reach an agreement, they must legally finalize it and publish it to the government’s web,” he stated.

According to the minister, most landlords, particularly in Bengaluru, want tenants to pay 10 months’ rent in advance. “If the proposed new tenancy law is passed, owners will be prohibited from collecting more than two months’ rent as advance,” he stated.

According to the minister, the Act grants the rental agreement precedence and requires the establishment of a Rent Authority to resolve disputes.

He went on to say that if there is a disagreement, it will be resolved within 60 days by the appropriate authority.

“We are also considering settling the issues within 60 days, and even if anybody wishes to postpone the hearing, there will be no more than three hearings,” Ashoka stated.

He saw that many owners, fearful of a conflict, keep their houses vacant rather than renting them out. “In Bengaluru alone, at least two to three lakh residences are currently unoccupied. We hope that after this Act is enacted, landlords will be able to retain their tenants, while rents may also be reduced,” The minister elaborated.