China to boost supervision on rental collection by home leasing firms – ET RealEstate

BEIJING: China‘s authorities said on Monday they would step up supervision of leasing firms and how they collect rental income and deposits, after a series of cases where tenants were evicted when leasing companies failed to keep up payments to landlords.

Leasing companies often require tenants make rental payments up to a year in advance. But last year several leasing firms failed to pass on rental payments each month to landlords, leading to arrears, evictions and a public outcry.

The central government has been encouraging the development of the rental housing markets to help solve a housing problem in big cities, where home prices remain high.

Under rules issued by government entities including the housing ministry and the state planner, leasing companies should not collect more than three months of rent at a time and rental deposits should not exceed one month, with all funds held in an account under official supervision, state media reported.

It also said leasing companies would not be allowed to use rental funds for other purposes and should not encourage tenants to take bank loans to cover their rental payments.

The regulations also required local authorities to monitor and adjust rental rates appropriately.

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Uttar Pradesh cabinet paves way for tenancy ordinance – ET RealEstate

LUCKNOW: The cabinet on Monday cleared the decision to bring in the Uttar Pradesh Regulation of Urban Premises Tenancy (second) Ordinance 2021.

The provisions of the ordinance will lead to reduction in tenancy disputes and in older cases, rents can be revisited.

Once the ordinance is promulgated, signing of contract will become compulsory to rent out a property. This will safeguard the interests of both the property owner and the tenant. The ordinance has made provision for a rent authority and rent tribunal to resolve disputes. These bodies will be tasked to resolve issues within 60 days.

Currently, there is no clear mechanism for conflict resolution under the present law and matters have been pending in court for years.

Keeping in mind the present and future demands of tenancy, the government had decided to replace the UP Urban Buildings (Regulation of Letting, Rent and Eviction) Act, 1972. On January 9, 2021, the Governor had promulgated the Uttar Pradesh Regulation of Urban Premises Tenancy Ordinance 2021. This was implemented in the state on January 11, 2021, but since the assembly was adjourned indefinitely due to unavoidable circumstances, the Bill could not be passed and therefore an ordinance is being brought.

The cabinet also cleared a proposal for setting up Uttar Pradesh State Institute of Forensic Sciences in place of the Uttar Pradesh Police and Forensic Science University. The decision, said an official, was made in pursuance of a Central Government advisory to states to set up institutes and affiliate them with a single university, the National Forensic Science University.

“Instead of multiple universities giving different degrees, now all degrees will be issued by one university. The National Forensic Science University has two campuses, one in Delhi formed by merging the National Institute of Criminology and Forensic Sciences and National University, and the other in Gujarat,” said an official.

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