Chandigarh's Rental Market Transformation
Chandigarh has a unique situation with nearly 47% of its population living in rented accommodations, making it India's highest tenant-populated city. The Union Territory is experiencing significant rental law reforms that will reshape landlord-tenant relationships.
Current Legal Framework
The existing East Punjab Urban Rent Restriction Act, 1949 has governed Chandigarh's rental market for over seven decades. However, this outdated legislation struggles with modern housing needs and dispute resolution challenges.
Revolutionary Changes Ahead
The Chandigarh Administration's draft Tenancy Act awaits the Centre's approval after minor revisions. The new framework, based on Assam's Tenancy Act, will introduce:
Digital Infrastructure
- Establishment of a Rent Authority for streamlined operations
- Digital platform for rental agreement submissions
- Unique identification numbers for all parties
- Online tenancy agreement uploads
Enhanced Dispute Resolution
- Formation of a dedicated Rent Court under Deputy Commissioner
- Maximum three adjournments per case
- Faster resolution compared to current decades-long civil court processes
Tenant Protections Under New Laws
Security Deposit Limits: Residential properties capped at two months' rent. Tenants gain protection against unlawful evictions, requiring landlords to follow due process with valid legal reasons.
Mandatory Documentation: Written agreements are required for new tenants and must be renewed if their duration exceeds 11 months. Landlords must provide rent receipts within the stipulated periods.
Landlord Rights and Responsibilities
Property owners retain eviction rights for non-payment, property damage, or personal use. The new system balances landlord interests while preventing arbitrary tenant exploitation.
Impact on Property Investment
These reforms address landlord apprehensions about renting properties, potentially unlocking numerous properties currently stuck in legal disputes. The structured framework promises increased rental market participation and improved investor confidence.