The Model Tenancy Act provides a clear roadmap for states to follow and tweak according to their local conditions and market. It remains to be seen to what extent the states will toe the central government’s line.
In a market where tenants have the leeway to bargain, property owners need to go the extra mile to attract tenants at good rentals. This helps them to let out their property faster while also justifying higher rental asks.
Despite the relatively low rental yields, residential property investors increasingly prefer to earn a steady rental income over selling the property.