Gandhinagar: Gujarat Government is likely to introduce a new tenancy act for the state on the basis of Model Tenancy Act 2021 of the central government.

The new tenancy act will replace the existing Bombay (now Gujarat) Rents, Hotel and Lodging House Rates Control Act. 1947. The existing laws give less protection to the property owners. The new tenancy law will aim to protect the property owners from the harassment from the tenants. Though protection will be given to the tenants also in this act.

The new tenancy act will have a provision for establishing a state-level regulatory authority to regulate the rented property market. The old act will be omitted before implementing the new act. Under Model Tenancy Act, the signature of property owner and tenant is mandatory in written agreement between them in which rent, duration of agreement and other related conditions are mentioned. To regulate the transactions of rented properties, the state government will establish an institute like the Real Estate Regulation Authority (RERA). This act recommends that rent of maximum two months as security deposit for renting residential properties and rent of maximum six months as security deposit of non-residential properties should be kept. The new act will also have provisions for sub letting of the properties.