As the capital of the state of Rajasthan, the Pink City of Jaipur attracts an increasing number of professionals, students, and migrants, driving consistent growth in the rental market. While areas like C-Scheme, Malviya Nagar, and Pratap Nagar have been the top choices of tenants, the upcoming and recently developed areas are also gaining popularity among people seeking affordable rental housing. Though the housing rental market of Jaipur and nearby suburbs like Jagatpura, Vaishali Nagar, Mansarovar, and Bani Park is flourishing with a decent growth rate, tenants and property owners both often face some challenges. The Model Tenancy Act (MTA) is expected to be regulated soon in Rajasthan also. If you are looking for a rental income-oriented real estate investment in Jaipur, read further to know how MTA will promote the growth of the rental market, justifying your investment. 

What is the Model Tenancy Act (MTA)?

The Union Government approved the Model Tenancy Act (MTA) on June 2, 2021. It is a framework to regulate rental properties and balance the rights and responsibilities of tenants and landlords. The MTA emphasizes the importance of legally binding rental agreements. It is aimed at streamlining the way of resolving disputes related to tenancy. It outlines the rights and obligations of both. It lacks direct legal force nationwide unless adopted locally. And, the Rajasthan government is still considering regulating MTA with a few amendments, taking into account local conditions. 

A document outlining the Model Tenancy Act for Rajasthan has been designed to regulate the renting of premises and protect the interests of landlords and tenants

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Salient Features of Model Tenancy ActModel Tenancy Act

MTA addresses the longstanding concerns of landlords and tenants. If adopted in Rajasthan, it will positively safeguard the interests of both tenants and property owners. The New Model Tenancy Act may transform the housing rental market in Jaipur by safeguarding the interests of investors. The key features that are sure to impact rental market growth in Jaipur are- 

• No premises can be rented without an agreement in writing 

• MTA is applicable to residential and commercial tenancies

• Rent to be fixed by mutual agreement between the landlord and the tenant

• MTA to apply to all tenancies with no monetary threshold

• Subletting is not permitted without a supplementary agreement

• The landlord can double the monthly rent for the first two months and thereafter, four times the monthly rent in case of default by the tenant to vacate the premises after termination of the tenancy.

MTA Strengthens Rajasthan Rent Control Act, 2001, Securing the Interests of Landlords 

The Rajasthan Rent Control Act, 2001, repealed the Control of Rent and Eviction Act, 1950, and was extended to all Municipal Areas by the Rajasthan Rent Control (Second Amendment) Act, 2005. When the Act came into force, it was only applicable to such Municipal areas that comprised the district headquarters. It was extended to all Municipal Areas by the Rajasthan Rent Control (Second Amendment) Act, 2005. The existing and proposed tenancy act secures the rights of landlords by allowing them to evict the tenant in certain cases- 

• If the tenant has not paid the rent for 4 months

• If the tenant, without permission of the landlord in writing, has caused construction on the premises 

• If the tenant has caused substantial damage to the rented property

• If the tenant causes a nuisance that adversely affects the landlord's interest

• If the tenant has renounced his character, denying the landlord's title 

• If the premises are rented for residential purposes but are used for commercial purposes

• If the premises have not been used in a reasonable way for the purpose it was rented. 

• If the landlord is required by any authority to evict the tenant 

Benefits of MTA That May Transform Jaipur’s Real Estate Market

To ensure the regular rental income without stress, you need to know your rights. The pride of being a property owner comes with a time-tested opportunity for getting passive income and a lucrative return on capital investment, but with many responsibilities and worries, such as finding a trustworthy tenant, getting rent on time, getting the property vacated when required, and so on. If MTA is adopted by Rajasthan’s government to support its existing ‘Rajasthan Rent Control (Second Amendment) Act, 2005’, further, it will boost the confidence of investors, accelerating the growth of real estate by 

• Streamlining leasing practices

• Providing enhanced legal protection

• Empowering landlords to evict tenants for legitimate reasons like non-payment of rent or misuse of the premises

• Ensuring landlords receive rent on time and by the agreement, promoting their financial stability

• Simplifying the recovery of premises after the tenancy has ended or there is a breach of the agreement

• Increasing legal clarity that will reduce disputes

• Speeding up dispute resolution through rent courts

• Establishing a transparent and accountable system for renting

• Providing peace of mind for NRIs and remote owners

• Attracting quality tenants 

• Ensuring long-term capital growth and passive rental income

Should You Invest in Jaipur’s Rental Market In 2025?

Over a couple of years, Jaipur's rental market has experienced notable growth. A significant increase in both the number of rental units and their overall value is being noticed. Localities like Mansarovar, Vaishali Nagar, and Jagatpura are booming as the prime choices for renters looking for affordable housing. Locations like C-Scheme, Bapu Nagar, and Malviya Nagar are emerging as the top choices of renters looking for premium housing. The establishment of IT parks and industrial zones like Mahindra World City has positioned Jaipur as a promising destination for job seekers, further fuelling demand for rental and residential properties. Localities like Pratap Nagar and Tonk Road are popular for co-living spaces suitable for students. With upcoming infrastructure projects and growing employment hubs, Jaipur’s rental market is set to register remarkable growth. Projects such as the Jaipur Metro, Ring Road, and expansion of the Jaipur International Airport have significantly improved connectivity. This has boosted the appeal of peripheral areas for residential and commercial development. The recent trends predict that the year 2025 is the best time to invest in rental properties at strategic locations and see your investment grow at a satisfactory rate.