Money

Cities where owners prefer to keep their homes vacant instead of renting them

NEW DELHI: Many householders prefer to keep their homes vacant instead of renting them out, as they’re afraid that the tenants could find yourself squatting on their properties.

According to a report by Khaitan & Co and Knight Frank, the next cities have the very best vacant homes as a proportion of the overall residential properties – Gurugram – 25.8%, Pune – 21.7%, Greater Mumbai – 15.3%, Delhi – 11-15%, Bengaluru – 11-15%, Ahmedabad – 11-15%, Ghaziabad – 11-15%.

According to the report, “Once the rental housing laws (the Model Tenancy Act, 2021) are carried out in letter and spirit by the states, this vacant stock may be introduced throughout the fold of formal rental housing as it might make it simpler for all stakeholders – tenants and landlords to bridge the belief deficit and unlock the true potential of this housing stock”.

Once states begin implementing the Model Tenancy Act, 2021, actual property builders and different market individuals might deal with housing initiatives solely for rental functions. A majority of the rental homes (76.5%) are unfold primarily throughout eight states.

Here are states with the very best proportion share of rented households in India – Tamil Nadu – 16.5%, Andhra Pradesh – 13.8%, Maharashtra – 13.5%, Karnataka – 11.3%, Gujarat – 6.1%, West Bengal – 5.9%, Uttar Pradesh – 5.1%, and NCT of Delhi – 4.3%.

The Union Cabinet, in June, permitted The Model Tenancy Act, 2021, for circulation to all states and union territories. By laying down floor guidelines for tenancy in black and white, the Act goals to create an efficient regulatory ecosystem in India to govern landlord-tenant relationships.

The landlord-tenant relationship has been tainted due to belief points as a result of of lack of a uniform rental housing regulation. Despite many states adopting the Rent Control Act previously, there was a necessity for a dispute decision mechanism as tenancy legal guidelines in India are popularly perceived as pro-tenant.

(Do you’ve got personal finance queries? Send them to [email protected] and get them answered by trade specialists)

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