Rental bonds can help address the issue of lack of trust between landlords and tenants. It can help promote rental housing in India. Rental Bonds provides the landlords with credit-verified and assessed tenants backed by an institutional guarantee and hence can help address the issue of lack of trust between landlords and tenants. According to an official statement, the act will help overhaul the legal framework with respect to rental housing across the country and the move will boost real estate growth. The act will also enable the institutionalisation of rental housing by gradually shifting it towards the formal market.

Source: Mint June 13, 2021 03:00 UTC