With the inflation and free market economy in place, the government is not exercising any control over prices or on the middleman from making money in the market. The government is further allowing every sector like transportation (bus fair), price of essential commodities to go up. It is true that purchasing power of the people are also increasing. Wages and salary are increasing.
Then Why is the Landlord’s hands being tied to keep the rent at a historic level. Due to colonial Rent Control Act that was in place in the 1960s, the rent is freezed at historic level.
Black money is generated by key money or pakidi, this also is a natural outcome of Rent Control Act.
The state of Kerala has not yet passed a Rent Control Act in tune with Model Rent Control Act proposed by the Central Ministry of Urban Development. The Memorandum of Understanding entered into by the state of Kerala and JNNURM (Jawaharlal Nehru National Urban Renewal Mission) also stipulates that a new Rent Control Act should be promulgated to balance the interest of Landlords and tenants.
The Landlords are not able to pay any money to the lobbies, hence no lobbies are there to help them or to pass an Act to safeguard their fundamental rights. The courts at various occasions defended building owners, (landlords) within their limited sphere.
Poor landlords living on small rentals are getting poorer and have to sell off their properties to the tenants. Atleast it is better than trying to evict the Tenant, which may take another 15 years in the courts. And the best part is that the Tenant Lobby is so strong that even if the case of the tenant is weak, he still continues to sit on the property with various methods adopted at court to make the landlord to sell out his property. Tenants adopt various Methods to delay the court proceedings and the Landlords are being forced to sell out their properties at heavy losses to any purchaser who is ready to buy property the possession of which is in the hands of the tenants.
Let market conditions generate rental rates in the market. Why should there be a rent control act. The Government allows the hike in bus fair or price of essential commodities.
The rent rates will also become stable by market forces in the Free market economy. Give that a chance. Remove the Rent Control Act and watch the difference. The curious fact is that government property is not covered by rent control act, the buildings which are let out by the government are not controlled by the rent control act, the rent control act is to control rent of the poor landlords only.
When the rent control act is repealed new buildings with better facilities will crop up, and rate of rent will go down. Tenants will get better accommodation at a cheaper rate. The only affected sector will be tenants who posses the buildings at a very low rates and who are not willing to increase their rate of rent in tune with modern times.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment