The Gujarat government is preparing a new law to regulate rental agreements and protect the rights and responsibilities of both landlords and tenants. The proposed legislation is expected to give property owners greater confidence to rent out vacant premises while providing tenants with clearer protections.
The Urban Development Department is likely to introduce the Bill during the monsoon session of the Gujarat Legislative Assembly. Modelled on the Centre’s Model Tenancy Act, 2021, the proposed law will make written rental agreements mandatory, provide a framework for resolving disputes and clearly define the responsibilities of landlords and tenants.
Under the proposed law, no property can be rented out or taken on rent without a written agreement. Both the landlord and tenant will have to jointly inform the Rent Authority about the agreement in the prescribed format within two months. A digital platform will be developed for this process.
The Bill also proposes the creation of a Rent Authority, Rent Court and Rent Tribunal to handle tenancy-related disputes and ensure faster resolution.
Key Rules for Tenants
If a tenant continues to occupy a property after the rental agreement expires without renewing it, they will have to pay twice the monthly rent. However, in exceptional situations such as war, floods or cyclones, tenants may be allowed to remain in the premises for up to one month after the calamity ends.
Tenants will not be allowed to sublet the whole or part of a rented property without permission through a supplementary agreement. Security deposits will also be capped at three months’ rent.
Landlords or property managers will have to provide prior notice before entering rented premises and will not be permitted to enter between sunset and sunrise.
Responsibilities of Landlords
Landlords will be responsible for structural repairs, except for damage caused by tenants. Their responsibilities will also include:
- Building repairs, whitewashing and painting
- Painting doors and windows
- Necessary repairs to taps and pipes
- Maintenance of internal and external electrical wiring
- Providing prior notice before entering the premises
- Ensuring essential services and supplies are not disconnected
- Limiting security deposits to a maximum of three months’ rent
Responsibilities of Tenants
Tenants will be responsible for routine maintenance and minor repairs, including:
- Repairing taps and replacing tap washers
- Cleaning drains
- Maintaining toilets, wash basins, bathtubs and geysers
- Maintaining switches, sockets and electrical appliances
- Taking care of kitchen fittings
- Maintaining door and window handles, locks and glass panels
- Maintaining any rented garden or open space
The proposed law also provides that landlords cannot cut off essential services or supplies to tenants. In specified circumstances, non-payment of rent alone may not immediately result in eviction. However, eviction proceedings can follow if rent remains unpaid for two consecutive months.
A separate provision has also been proposed for rented premises that include vacant land.