Maharashtra housing department advises landlords to defer rent collection for 3 months

April 20, 2020: Maharashtra housing department on Friday issued a circular asking landlords and home-owners to postpone rent collection from tenants for at least three months given the lockdown situation. It also stated that landlords should not evict tenants for non-payment of rent during this period.

The circular signed by housing secretary Sanjay Kumar went viral on social media. Many a landlords are in a fix whether the government had the legal power to enforce it.

The lockdown has had an adverse impact on income and employment of people. "Several people are faced with difficult financial situations. Large number of people are not able to pay their regular rents. Hence, rent recovery should be postponed for at least three months and no tenant be driven out for non-payment of rent," Kumar said in the circular.

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The proposal is to be implemented with immediate effect. The issuance has gone down well with landlords whose only source of income is rentals. However, in words of Housing Minister Jitendra Awhad, “a lot of people are facing economic hardships as a result of the pandemic. The government has taken this step keeping in mind it will be difficult for tenants to pay rents in future”.

Rents in Mumbai are sky-high right now and the move is a sigh of relief for majority of tenants. “For the time being, the government seems to have taken a view that the landlord depending on rental income is in a better position to weather the economic devastation caused by this pandemic,” said Rajesh Prajapati, managing committee member, Maharashtra Chamber of Housing Industry.

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