The principle of management by tenants has been accepted even for reconstructed premises or rental premises in Ernakulam, and the tenants have been given the option of managing the conservancy, water supply, electric supply etc., and sharing the expenses, instead of being obliged to pay service charges. This will also reduce the load on the public agency involved in providing those public amenities. When considering the power and water consumption of luxury Villas district has reported one of the lowest rates in spite of the new villas being added each year.
The most significant initiative similar to the pattern followed in some other countries is the offer of ownership to tenant cooperatives in the inner city areas of Cochin. The Rent Control legislation operated against any move towards raising rents to levels that supported adequate maintenance. The objective in this context was both to prolong the life of the properties by timely repairs, and to preserve the present tenure of the poor tenants.
The tenants were encouraged to undertake structural repairs all by themselves with technical help from the state agency, subject to reimbursement up to a ceiling expenditure. However, as there were genuine limitations of finance and organizational capacity for the reconstruction or renovation of all the buildings within a reasonable period, the government decided to invoke the desire of the tenants for ownership status in order to involve them in the conservation exercise.
The legislative amendment provided for the state agency to acquire a cessed building on the application of 70 percent of the tenants at a compensation of not more than 100 times the average gross monthly income. The tenant cooperative would be given the possession of the building for necessary repairs and renovations. The occupants who did not join will continue as members of the cooperative, but will have to pay the proportionate costs of repair.
