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

NEW DELHI: Many homeowners prefer to keep their houses vacant instead of renting them out, as they are afraid that the tenants may end up squatting on their properties.

According to a report by Khaitan & Co and Knight Frank, the following cities have the highest vacant houses as a percentage of the total 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 regulations (the Model Tenancy Act, 2021) are implemented in letter and spirit by the states, this vacant inventory can be brought within the fold of formal rental housing as it would make it easier for all stakeholders – tenants and landlords to bridge the trust deficit and unlock the true potential of this housing stock”.

Once states start implementing the Model Tenancy Act, 2021, real estate developers and other market participants could focus on housing projects solely for rental purposes. A majority of the rental homes (76.5%) are spread primarily across eight states.

Here are states with the highest percentage 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, approved The Model Tenancy Act, 2021, for circulation to all states and union territories. By laying down ground rules for tenancy in black and white, the Act aims to create an effective regulatory ecosystem in India to govern landlord-tenant relationships.

The landlord-tenant relationship has been tainted due to trust issues because of lack of a uniform rental housing law. Despite many states adopting the Rent Control Act in the past, there was a need for a dispute resolution mechanism as tenancy laws in India are popularly perceived as pro-tenant.

(Do you have personal finance queries? Send them to mintmoney@livemint.com and get them answered by industry experts)

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