Rentals Reluctance

Rentals Reluctance
Rena
According to Dr. Suresh Joshi, Ex. Commissioner, MMRDA, 5% of the ready to use accommodation in the country are locked. The vacant accommodation in the country are locked. The vacant accommodation is still waiting for the occupation. It is not that the permissions are not granted but for the fear of permanent tenants.
In India Rent Act is biggest problem/. There is shortage of housing, but none wants to invest in rental housing because of lack of security. Thousands of cases are pending for years in various courts in India, waiting for a bonafide decision.
In Mumbai, old tenants and pugree system are still waiting for a fair judgement for landlords and tenants.
Because of this, Mutual funds in real estate are waiting for the correct jurisdiction and provisions of law to safeguard investors funds. The mutual funds now will have to go for trading in real estate stock instead of hoping to earn on rental income from real estate.
In USA almost 70% of the population live on rental accommodation so is the situation in Europe and other parts of developed world.
The need for a nationwide model Rent act arises when non of the act prevailing, either state level of centre level are working to give assurance of vacating property.
Commercial rentals are worst affected. Commercial rental deals are somewhat restricted to corporate world or at the most with private limited companies. Shops and retail outlets are having no protection of law hence there are very little hope of reviving commercial property rental deals.
In Mumbai, person want to go for, residential accommodation needs to take NOC from police. And proof of his residence in the city for a period of time. The procedure is tiresome if approached directly to the concerned police station.