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Impact of Model Tenancy Act on Co-living Economy

Dec. 22, 2021
3 min read

India is a wonderful place to live in. It has created a vibrant ecosystem wherein talent is appreciated more than any kind of regional significance of a person. As of the digital revolution, companies have cropped up in every single sector of the country and have been booming ever since. 

 

This mighty change has attracted a huge influx of people looking for job opportunities, to learn new skills, earn new degrees, and also to explore life as a whole. 

 

In hindsight, everything was present in the landscape of India, yet there was a hindrance hovering over people like a black cloud. Residences were not cheap and several people have suffered due to this very issue. 

 

The Model Tenancy Act of 2021 is a game-changer in the unorganized residential market and, it has hence created a wave of changes benefiting both the people and the landlords. A new age is upon us. So let's discuss deeper into the crux of this matter.

 

Residential Issues

 

As a bachelor living in a metropolitan city, being from another state is tough at the beginning but you get there eventually. The problem is not with the place but with the places we choose to stay at. There are several factors that hinder a good experience altogether.

 

Deposits

 

cash

 

Looking for an apartment to rent out as a bachelor is hard and, if you're renting out an apartment as a student, it's 'harder' than you can imagine. The steep deposits that landlords ask for would tear your wallets and it won't be such a cool residential experience. Also as everyone knows, the quarrel with regards to returning the deposit is a question of sanity and money. It's not fixed and causes several issues altogether.

 

Rent

 

rent

 

Renting a flat gives freedom to explore yourself, to live with yourself and understand more about yourself, but as all things come, it also comes with a price. Metropolitan cities have had issues with high rental yield, brokerages, and also living conditions. You might not be getting what you hoped for with the minor rental yield you received. 

 

Some areas will host a bigger rental yield than it is properly required and, some charge higher than usual???? If you are lucky you catch the ball or you just drop it.

 

The bachelor /Family differentiation

 

family

 

This has to be one of the most debated topics out there. The discrimination between being a bachelor and a family individual. 

 

Whenever we have approached an apartment the owners have this screening process wherein most flats or apartments will eventually be given to families, as they are more stable and don't cause issues anywhere. 

 

However, bachelors are seen in a bad view as troublemakers or bad ? towards the society they live in. The discrimination does not stop here. In many places being a bachelor can lead to increased rents while renting out an apartment. When the rent for the same flat is 5% for a family, it will be increased to 10% from normal rates for bachelors. 

 

All these reasons have secluded the bachelor to mundane life in PGs, hostels, or even in uncomfortable dormitories. 

 

The Coliving Market

 

Market

 

Coliving is making a significant change in society by empowering bachelors, and individuals looking for an "honest to God" living experience. It's not every day you find a good place to stay. The recent trend has noticed that due to several issues with relation to societies and also troublesome PG's people are shifting more to the co-living industry. 

 

India's residential market has touched a whopping $20 billion, or more than Rs. 1.45 Lakh crore. The introduction of the Model Tenancy Act, 2021 is in favour of the growing residential industry and has a criterion that emphasizes the residents and their well being. It is truly a great set of months we've had with new laws to support the people of India.

 

The Model Tenancy Act, 2021