UP To Bring New Urban Tenancy Laws

In order to safeguard the rights of both the landlord and the tenant, the Uttar Pradesh government has decided to bring out a legislation which will prevent a dispute between the two parties in the future. The draft ordinance

BY Realty Plus
Published - Tuesday, 12 Jan, 2021

In order to safeguard the rights of both the landlord and the tenant, the Uttar Pradesh government has decided to bring out a legislation which will prevent a dispute between the two parties in the future. The draft ordinance titled ‘Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance, 2021’ has been cleared by the state cabinet held by circulation. Under the new law a rent agreement is now mandatory for a property to be given on rent. A rent authority will be set up and any new rent agreement will have to be registered with it. The authority will issue a unique identification number and within seven days of receiving an agreement, will upload details of the tenant on its website. Details of tenants may not be shared with the authority if the duration of the tenancy is less than 12 months. Under the new law, the house owner can only hike five per cent rent annually for domestic usage and seven per cent for commercial. Not paying rent for two months will lead to eviction of the tenant. The rent authority and appellate tribunal will have to dispose of any dispute within 60 days as per the provisions of the law. The tenant and the property owner will jointly decide the duration of the tenancy and any renewal of the agreement. The points mentioned in the agreement will continue to be applicable to the successor of both, the tenant and the landlord, in the case of death of one or both. The new law lays down responsibilities of the landlord, increase in rent on renewal of the lease, details of the rent authority which will consider cases of dispute, etc. Once this law is in place, there will be much more transparency in the agreement between the tenant and the landlord and therefore, there will be no scope for petty disputes or at least, there will be much more clarity on several issues. For instance, the law will make it clear whose responsibility it will be for painting, paying maintenance, water, power bills, etc. The new ordinance is unique in the sense that it makes provision for regulating the rent of the existing tenancies.