The Dhaka North City Corporation (DNCC) authorities have formulated guidelines related to house rent in the capital Dhaka.
The Administrator of Dhaka North City Corporation, Mohammad Ejaz, announced the guidelines at a press conference held the DNCC Nagar Bhaban today, Tuesday.
DNCC authorities stated that the guidelines have been prepared in accordance with the House Rent Control Act, 1991.
The guidelines stipulate that rent may be increased after two years and that rent increases should take place during the months of June–July.
In addition, a standard rent has been defined, and the annual rent amount must not exceed 15 per cent of the market value of the concerned property.
Both house owners and tenants are required to comply with the provisions of this guideline. Any problem related to renting or leasing a house may be reported by either party to the respective zonal executive officer responsible for each region of Dhaka North City Corporation for resolution.
Before unveiling the guidelines, Mohammad Ejaz stated that although approximately 35 million people currently live in the Dhaka metropolitan area, the total number of houses in both Dhaka North and South combined does not exceed 2 million to 2.5 million.
As a result, a large portion of the city’s population is tenants. Rural-to-urban migration, personal migration, and the concentration of administrative and other facilities in Dhaka have increased pressure on the city, with the housing sector bearing the greatest impact.
Various studies show that if a person spends a maximum of 30 per cent of their income on housing, it is considered acceptable. However, in Dhaka, people in many cases are forced to spend 50 to 65 per cent of their income on house rent, he added.
Mohammad Ejaz further said that due to complexities and ambiguities in the implementation of the House Rent Control Act 1991, and the slow implementation process at the local government level, excessive rent increases have been occurring repeatedly.
At the same time, the rights of those who earn their livelihood by renting out houses have not been adequately protected, which has not received sufficient attention until now.
What the guidelines include:
The house owner must ensure that the house remains suitable for habitation.
The house owner must ensure uninterrupted gas, electricity, and water connections, daily household waste collection, and all other necessary facilities. If tenants face any problems, they will inform the house owner, who must resolve the issue promptly.
The house owner and tenant (subject to prior approval of the house owner) shall carry out greenery (flowers/fruits/vegetables) on the rooftop, balconies, and open spaces in front of the house.
Recently, incidents related to fires, earthquakes, and other man-made and natural disasters have increased, resulting in loss of life and property. In the interest of safety, the house owner shall provide each tenant with keys to the rooftop and main gate under certain conditions.
The tenant shall pay rent to the house owner by the 10th day of each month. The house owner must provide the tenant with a written rent receipt each month as proof. At the time of payment, the tenant shall collect a signed written receipt confirming rent payment.
The tenant’s right to enter the house at any time shall remain protected. If the house owner takes any steps to ensure overall security and discipline, the tenant must be informed and their opinion sought before implementation. Reasonable measures must be taken through bilateral discussion.
The standard rent shall remain effective for two years from the date of enforcement. Rent increases shall take place during June–July.
Under no circumstances may house rent be increased before two years. After two years, rent may be revised based on standard rent or mutual discussion.
If the tenant fails to pay rent within the specified time, the house owner shall verbally warn the tenant and urge regular payment. If this fails, the house owner shall issue a written warning notice instructing the tenant to vacate the house within two months after clearing all dues. The house owner may terminate the previously signed contract and evict the tenant.
In the case of residential buildings, either party may terminate the rental agreement by providing two months’ notice.
The standard rent shall be determined, and the annual rent amount shall not exceed 15 per cent of the market value of the concerned property.
A written agreement with the house owner must clearly specify the terms of rent, obligations, rent increase conditions, advance payment, and the time of vacating the house.
At the time of renting a house, no more than one to three months’ advance rent may be taken.
Ward-based house owners’ associations and tenants’ associations must be formed within city corporation areas. Representatives from both sides shall participate in arbitration of rent-related disputes at the local ward level.
Any disputes must first be resolved through discussion between ward/zonal house owners’ associations and tenants’ associations. If unresolved, the matter shall be reported to the concerned zonal executive officer of the city corporation.
To ensure tenants’ rights, Dhaka North City Corporation shall raise awareness among tenants and house owners regarding compliance with the guidelines issued under the House Rent Control Act, 1991, and organise zonal-level exchange and discussion meetings if any complications arise.