Govt. to Bring New Rent Laws for Housing Sector

October 4, 2007	(3 votes, average: 4.67 out of 5)  Loading ...
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The government is taking initiatives to encourage investments in residential sector. Stepping up efforts for the same, it is planning to modify rent control norms favoring land owners. The revised norms would address landlords’ issues regarding forceful occupation of the property by tenants.

The move will ensure that landlords can modify rents as per the market conditions after certain intervals. The urban development ministry has asked the governments of Karnataka, Maharashtra, AP, Kerala, and Delhi to bring changes in their old rent control laws according to the new model which would set a standard rent or floor rate for a specific area.

The ministry is likely to execute its model rent control law in the Capital soon. The rents will be decided by the state government as land is a state subject. Although property falls under state subject, the urban development ministry regulates property related issues for Delhi as there is no formal statehood for it till date.

Rent control laws see to degeneration of the quality of life in civic habitations. Generally, a landlord stops taking care of the property when it becomes difficult for them to remove a tenant paying low rent. And, tenants are least bothered about the bad condition of the property. The assets, therefore, deteriorate. This encourages a need for a mature and long term rent market with best construction practice free from such controls.

News Published Under:   Real Estate India |

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