RENTAL HOUSING – A NEGLECTED POLICY AREA OPTION

2. • Maharashtra Rental Housing Scheme in Mumbai Metropolitan Region
• Tamil Nadu Tamil Nadu Regulations of Rights and Responsibilities of
Landlords and Tenants Act, 2017

3. 78.86 million total
urban
27.37
million rental
79.4% or 21.72
million
20.6% or 05.65
million
3&4 10.95 million urban @ 50%
1&2 3.90 million urban @ 18%
Others 6.87 million urbans @ 32%
37% in 1991 to 28% in 2011
25% informal
5% formal
(NSSO)
Sources; census of india 2011

4. POLICY IN RENTAL HOUSING

5. • National Urban Housing and Habitat Policy (NUHHP)

6. • National Urban Housing and Habitat Policy (NUHHP)
Need • Poor household live (unaffordable for the large section population on owner and rent )
housing loans to weaker
sections is decreasing
every year i.e. upto Rs.
2 lakh – from 2% to
1%, upto Rs. 5 lakh –
from 14% to
9%, up to Rs.10 lakh
from 34% to 26%
during 2012-13 to
2013-14
own a house due to low disposable income, irregular income,
ever increasing real estate prices etc.

7. • Defination
• property occupied by someone other than the owner, for which the tenant
pays a periodic mutually agreed rent to the owner.
• As per Census 2011 of India’s 78.86 million urban households
• As per Census 2011, there are a total of 27.37 million rented
households in India,
• 79.4% or 21.72 million are urban rented households
• households with a size of 3 or 4 family members alone constitute 50%
of the total or 10.95 million urban households
• Household with a size are 1 and 2 family member are 6% and
12%

8. • 20.6% or 05.65 million are rural rented households
• share of rentals as a share of total housing has reduced from 37% in
1991 to 28% in 2011
• National sample survey organization in india govn are 25% informal
settlement only for 5% formal

9. • 25 per cent of India’s housing stock comprises informal rentals.
• Yet informal rentals remain an understudied area. Through an
empirical study, this article illustrates the typologies of informal
rental housing in urban villages and unauthorized colonies in
Gurgaon, a city of 1.2 million located within India’s

10. POLICY IN RENTAL HOUSING
• National Urban Rental Housing Policy

11. National Urban Rental Housing Policy
• Initiatives of Ministry of Housing and Urban Poverty Alleviation (MoHUPA):
(STATE GOVT)
• Need
• These poor households live in congested conditions indicating that housing is
unaffordable for a large section of population, be it ownership or rental
• upto Rs. 2 lakh – from 2% to 1%,
• upto Rs. 5 lakh – from 14% to 9%,
• upto Rs.10 lakh from 34% to 26% during 2012-13 to 2013-14 (source: National
Housing Bank).
• As per National Sample Survey Organization (NSSO) urban residents pay around 6.2%
of their total expenditure on house rent, which has increased three fold from 2004-
05 to 2011-12
• tax deduction for House Rent Allowance (HRA)
• for an employee which is around 40% on the basic salary.
• the urban poor might be paying monthly 30% of their income as house rent without any
incentives.

12. • As per Census 2011, over 27% of urban residents of the country are
living on rent and most of them are informal in nature.
• The NSSO report has highlighted that, 25% of the hired dwelling units
are informal and only 5% are formal
• 2007-08, the National Sample Survey (NSS) (the proportion of
migrants in the population) in urban areas at 35%
• Male migrants it is 37.6% on account of work
• Females it is 64.9% due to marriage

13. • Issues
• Housing loan payments can be deducted from Income Tax, but not rent paid
specially by the poor and vulnerable section of the society
• Rental yields were at levels of 6% or so in Mumbai during 2006, around 3.5%
in 2009 and 1.5% in 2011

14. • Objectives
• rental housing stock by promoting Social Rental Housing (SRH) with direct or
indirect support from Government (State) with special focus on affordability
of vulnerable groups and urban poor
• formalization/regularization of Rental Housing on pan India basis through
adoption of Model Tenancy Act, 2015 of Ministry of HUPA.
• Shelter facilities for the most vulnerable groups within the homeless
population such as single women and their dependent minor children, aged,
infirm, disabled, mentally challenged etc.
• MDRH may or may not be eligible for direct benefits from government

15. • Target groups
• under the Shelter for Homeless (SUH) scheme under the National Urban Livelihoods
Mission (NULM)
• Social Rental Housing (SRH)
• Need Based Rental Housing for various target groups
• Market Based Rental Housing (income based)

16. • Formal urban rental housing yet to take off As per the Census of India,
the share of rentals as a share of total housing has reduced from 37%
in 1991 to 28% in 2011. This number is estimated to be much higher
in India now. As per the National Sample Survey Office (NSSO) in
2012, 71% of the households living in rented accommodations do not
have any written contract. While a part of this could be due to the
informality of the premises itself, the Rent Control Act enacted by the
various state governments has also acted as a deterrent to the
formalisation of rental agreements across the country

17. • As per Census 2011, there are a total of 27.37 million rented
households in India,
• 79.4% or 21.72 million are urban rented households
• 20.6% or 05.65 million are rural rented households
• National sample survey organization in india govn are 25% informal
settlement only for 5% formal

18. Central govt
• Rent Control Acts and adopt the Draft Model Tenancy Act, 2015.Rent-
to Own Scheme,
• Shared Ownership Scheme,
• PPP Model,
• Rental Voucher Scheme,
• Rental Allowance Scheme

19. • Defination
• property occupied by someone other than the owner, for which the tenant
pays a periodic mutually agreed rent to the owner.

20. Model tenancy act (Ministry:Housing and Urban Affairs)
• The Model Act requires the landlord and tenant to sign a
written agreement which specifies the rent, period of tenancy
and other related terms. Security deposit is capped at two
months’ rent for residential premises, and six months’ rent for
non-residential premises
• Conditions for eviction of tenant under the Model Act include:
(i) refusal to pay agreed upon rent; (ii) failure to pay rent for
more than two months; (iii) occupation of part or whole of
premises without written consent; and (iv) misuse of premises
despite a written notice.
• The Model Act establishes a three-tier quasi-judicial dispute
adjudication mechanism consisting of: (i) Rent Authority; (ii)
Rent Court; and (iii) Rent Tribunal
• Rent Authorities and Rent Courts may be established by the
District Collector with the approval of the state
government. The state or union territory government may
establish a Rent Tribunal after consulting with the
jurisdictional High Court.

21. • Tenancy agreement
• (i) the rent payable
• (ii) the time period for the tenancy
• (iii) terms and period for revision of rent
• (iv) the security deposit to be paid in advance
• (v) reasonable causes for entry of landlord into the premises
• (vi) responsibilities to maintain premises.
• Security deposit
• (i) two months’ rent for residential premises
• (ii) six-months’ rent for non-residential premises
• Tenancy period
• (i) a tenancy period has ended and not been renewed
• (ii) the tenant fails to vacate the premises at the end of such tenancy
• (i) twice the monthly rent for the first two months
• (ii) four times the monthly rent subsequently till he occupies the premises.
• Eviction:
• (i) refusal to pay the agreed rent;
• (ii) failure to pay rent for more than two months;
• (iii) parting of possession of part or whole of premises without written consent of landlord;
• (iv) misuse of premises even after receiving written notices to desist from such misuse; and
• (v) structural change by tenant without written consent.

22. Authority Headed by Functions
Rent Authority Deputy Collector
•Put up a digital platform to enable submission of tenancy related
documents as specified
•Provide a unique identification number to the parties to the tenancy
agreement, and upload details of the agreement within a week of
receiving details
•Resolve disputes with regard to revision of rent, and determine revised
rates in such cases
•Accept rent for up to two months when rent is not accepted by landlord,
or if the tenant cannot decide whom the rent is payable to; also conduct
enquiries in such cases on whom the rent is payable to
•Remove or penalise property manager if he acts in contravention of the
Act or against the instructions of the landlord
•Pass interim orders to restore supply of essential services and award
compensation
Rent Court
Additional Collector,
or Additional District
Magistrate
•Adjudicate appeals against the Rent Authority’s orders
•Order for eviction and recovery of possession of premises
Rent Tribunal
District Judge, or
Additional District
Judge
•Adjudicate appeals against the Rent Court’s orders

23. Timeline Type of Case
30 days after filing of application
•Occupation of whole or part of premises without written
consent of landlord
•Misuse of premises even after receipt of notice to desist
by landlord
60 days after filing of application •Appeals to Rent Court and Rent Tribunal
90 days after filing of application
•Refusal to pay agreed upon rent
•Failure to pay rent for two consecutive months or more
•For carriage of necessary repairs, construction, rebuilding
or demolition,
•In case of change in land use
•Failure to vacate premises after written notice, in case
where landlord would seriously suffer if not in its
possession
•Death of landlord and bonafide requirement of premises
for his legal heirs

24. ISSUES AND ANALYSIS
• Purpose of the Model Act
• (i) balancing interests and rights of the landlord and tenant,
• (ii) creating adequate and affordable rental housing stock,
• (iii) enabling formalisation of the rental housing market,
• (iv) encouraging private participation in the sector, and
• (v) unlocking vacant premises for rental purposes
• Model Act may not address challenges in the rental housing
market
• Lack of rental housing policy
• affordability

25. Rental housing (forign and
india)

26. Tamilnadu rental housing act
• Tamil Nadu Buildings (Lease and Rent Control) Act, 1960
• Ministry of Housing and Urban Poverty Alleviation (MoHUPA) had
constituted a Task Force on Rental Housing (TFRH)4 to suggest
measures to give a fillip to rental housing . The task force had given
thirteen recommendations which have been considered in
formulation of the National Urban Rental Housing Policy, 2015

27. • India
• As per census on 2011 over the 27% urban residents of the country are living on rentral
housing
• National sample survey organization in india govn are 25% informal settlement only for
5% formal
• India Govn are the all the states respective for rent control acts (RCA)
• (fixed rent with limit option increase rental )

28. SINGPORE

29. CHINA
Assessing investment value of privately-owned public rental housing projects with multiple
options
problem
disregarding for financial and operational issues of PRH projects
private developed are supply of public rental house is agent for earns meager not control fee
solve
Building own operation concession mode are proposed are developed charge of life cycle management
of public rental house project contract
private are fund raising , construction maintance (operation) when as mulit level option
abandon
transfer
expand target
net present value (npv)
BOOC and valuation method

30. • BOOC mode and embodied options
• Exiting construction mode of PRH
• Proposed of BOOC (option to abandon, transfer, expand)
• Pricing model of BOOC mode
• Traditional price model

31. Real option price model

32. Assessing investment value of privately-owned public rental housing
projects with multiple options
A series of problems
financial deficit of local government,
high construction costs public rental housing
supply inefficiency of PRH,
involve the private sector with abundant capital and managerial experience to share the
financial burden of the government and improve the supply efficiency and sustainability of
PRH.
Accordingly, since 2015, the Chinese central government has encouraged the adoption of
PPP to
absor social resources for PRH development

33. • land supply and tax relief has been released to promote PPP adoption
in the delivery of PRH

34. • social wage and controlled by government. However, to
the contrary Southern Europe paid emphasis on supporting
family provision
• Netherlands the social housing companies played an
important role by collaborating with the local urban
bodies (municipalities).Where the land was provided by the
municipalities at a subsidized cost and the housing companies built
social housing, much of this housing was provided on rental basis to
the vulnerable section of the population.

35. French rental housing policy
the regulation of relations between landlords,
the regulation of relations between tenants,
social housing and the housing support system.
The objective of the reforms proposed
three tools in order to increase mobility, reduce inequalities
between regions and strengthen social cohesion.
Housing policy has two clear objectives: redistribution; employment
and growth
Main tool

36. Housing policy has two clear objectives:
redistribution

38. • Aim
• Identify the factors influencing rental housing dynamics
• Objective
• All are people house ownership not possible why
• Average price of land in city and area location
• Majority reason people useing rental housing
•

39. • Problem on faceing to rental housing people
• Cost of rent
• Security space of human
• Extra space house
• Landlords and rental people to be controversies

40. • Rent fixed categories
• Market-based (site location)
• Cost-based (constriction cost)
• Income-based (people income)
• Fixed-rent (applied on top of criteria)
• Characteristic-based (size,location,amenities)

41. • Affordable Rental Housing Scheme (ARHS)
• Govt of India lanuched for july 2020
• urban migrants, including workers in industry, health institutions,
street vendors, students
• {One, 1.08 lakh vacant houses built under JnNURM and Rajiv Awas
Yojana will be repurposed as rental houses.
Two, public and private entities will be incentivised to develop rental
housing on their vacant land.}

42. Reverse migration due to
covid
Urban migration/poor
forced to live in slum
High rental cost
Affordable houseing for
from workplace
Lack of drinking
water, proper santation,
basic infrastructure
Labours (skilled ,
unskilled)
Street vendors
Migrants in works
Hospitality
sectors
Industries works
Tourrists visitors
Education/health
institutions
Urban
migration/poor
forced to live in
slum
This scheme are
implemented are estimated
expenditure 600Cr

43. Affordable rental housing scheme
• ARHS implemented
• All statutory town
• Notified planning area
• Development authorities
• special area Development
authorities
• Industrial Development
authorities
• Approval period
• PMAY urban mission still-on
march 2022
ARHS be implemented
Mode 1
Utilizing existing Govt
funded vacant housing
by converting into ARHS
through ppp
Public agencies @
operating them for
concession period of 25
years
Model 2
Construction, operation
and maintenance of
ARHS by public/private
own vacant land for 25
year

44. • Benefits ARHS
• State government
• Use permission changes, if
needed 50% additional FSI in
free of cost
• Statutory approval through
single window system within
30 days
• Basic infrastructure the are in
site
• Municipal charge are the pay in
residential properties
• Central
government
• Concessional project
finance under AHF and PSL
• Income tax and GST on
the any profit @ gain
• Technology innovative
technology
Outcome of ARHs
• Living on the work place near by ARHS
• Strengtheing on municipal finacess
• Prevention of slum
• Economically productive of exiting vacant
house

45. Model tenancy act
• Central government in MTA 2-june 2021
• Rent authority are control distric collecter
• Rent court are control of distric collecter
• Rent tribunal control distric court counselling
Rent agreement are anounce for two month before for rent
authority in form
Advance are two month rent in residential and commercial to be
for 6 month rent
Rent are discuess in tenant and landlord considered to fixed
rent

46. • Minimum of repair and maintenance work in tenant
• Maximum maintenance are landlord
• Landlord are the checking and maintenance are visting to before inform
on 24 hours in time morning 7am-9am
• Tenant agreement date are complete than extend to be landlord
decied
• There are continuous for tenant in double of rent in pay
• Any problem are tenant and landlord move on court and rent tribunal in
case are 60 day to completed
• This act are not used central and state government place, temple, public
place

47. • China housing detail
• Total population 134.41 Cr
• Total household size 2.70
• Total household 49.78 Cr
• China - Population Living In Slums
• 1995 - 40.4%
• 2000 - 38%
• 2005 - 33%
• 2010 - 29%
• 2015 - 25.8%
• 2020 - 24.6%
Owner occupied 89.3%
Owner private
housing
After 1949 old
private housing
before 1949
11.2%
Owner market
housing
Market and built by
developers
38%
Privatized public
housing
1980-2000 housing
reform
40.1%
Rental housing Both are private
and public
10.7%

48. type Date Description
Old public housing
(private@non-
privatized)
1949-1998 Discount rate/control of local
housing authorities
New public housing Target group Eligibility requirement
Economic comfortable
housing (ECH)
Low-income, poor
household
Local residence permit
(Hukou),living space threshold
Size limit are 60-90 Sq.m
affordable and developed profit
margin in 3-4%
Comfortable price
housing (CPH)
Low – middle income
group people
Local residence permit (Hukou),
without owned-home
The price is usually capped at
around 70% in minimum 5 year
buyer used
Shared owner housing MIH Local residence permit (Hukou),
without owned-home
Shantytown Renovation
Housing (SRH)
households relocated due
to urban revitalization and
construction projects
owners of expropriated homes shared own housing are
relocated. Than are
demolished in old home to
exchanged
Cheap Rental Housing
(CRH)
Low-income,
poor household
residence permit (Hukou),
income and asset threshold,
living space threshold
Public Rental Housing all households no local residence requirement

49. income characteristics in china
• EWS = (1 lakhs)
• LIH = (1 lakhs to 2 lakhs)
• MIH = (2 lakhs to 6 lakhs)

51. RENTAL HOUSING – A NEGLECTED POLICY
AREA OPTION