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LandLords? PDF Print E-mail
Tuesday, 28 May 2013 02:15
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If rights of landlords are not respected, investment in real estate will continue to remain constrained

 

Protecting the rights of tenants may make for very good policy in a country where there are more tenants than there are landlords, but as the ministry of housing and urban poverty alleviation (HUPA) has discovered, there are two sides to any coin. While India needs around 19-20 million affordable housing units, it also has around 11 million housing units that are lying vacant. Landlords, not surprisingly, are not taking any chances with their properties not being returned to them—so they are simply not renting them out. If the pro-tenant bias in tenancy agreements are corrected, theoretically, half of the housing shortage can be addressed immediately.

HUPA’s solution is to push for model residential tenancy laws, which will try and balance the rights of house owners and tenants by creating appellate rent tribunals that will cut short the decades it takes to fight cases in India’s busy courts. Doing this, of course, won’t be easy since this falls under the purview of state governments. So, the ministry is trying to work with the states on this and has formed a task force to come up with solutions. One easy way would be to put this as one of the prerequisites if states are to get concessional funding from the Centre for the Jawaharlal Nehru National Urban Renewal Mission.

 
 

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