Homeowners in Dhaka have traditionally increased house rent every year. Under a new directive, however, landlords will no longer be allowed to raise rent before the completion of two years.
Dhaka North City Corporation (DNCC) has drafted house rent guidelines for the capital, incorporating 16 directives.
DNCC Administrator Mohammad Azaz announced the guidelines yesterday at a press conference at the DNCC City Hall.
According to DNCC, the guidelines have been formulated in line with the House Rent Control Act, 1991.
The directives state that rent can be increased only after two years and that any adjustment must be made during June-July. They also set standards for fair rent, specifying that annual rent should not exceed 15 percent of the market value of the respective house.
Both landlords and tenants are required to comply with the guidelines. Any disputes related to renting properties can be reported by either party to the respective zonal executive officer of each DNCC zone for resolution.
Before announcing the guidelines, Mohammad Azaz said that although around 3.5 crore people live in Dhaka, the total number of houses in Dhaka North and South combined is no more than 20 to 25 lakh. As a result, a large portion of the city’s population are tenants.
Urban migration from villages, individual migration, and the concentration of administrative and other facilities in Dhaka have increased pressure on the city, with the housing sector being the most affected, he said.
Citing various studies, Azaz said spending up to 30 percent of income on housing is considered acceptable. However, many people in Dhaka are spending between 50 and 65 percent of their income on rent.
He also noted that complexities and ambiguities in implementing the House Rent Control Act, 1991, along with slow execution at the local government level, have led to repeated excessive rent hikes.
At the same time, the rights of landlords who depend on rental income have not received adequate attention.
Among the 16 directives are provisions requiring landlords to ensure that properties are suitable for habitation and that gas, electricity, water supply, household waste collection, and other essential facilities are provided continuously.
Tenants are required to report any problems to landlords, who must resolve them promptly.
The guidelines also allow landlords and tenants, with the landlord’s prior approval, to use rooftops, balconies, and open front areas for greenery such as flowers, fruits, and vegetables.
In light of recent accidents caused by fires, earthquakes, and other natural and man-made disasters, landlords must provide tenants with access to the roof and main gate under certain conditions to ensure safety.
Tenants must pay rent by the 10th of each month, while landlords are required to issue written receipts for each payment. Tenants should collect signed receipts when paying rent.
If a tenant fails to pay rent on time, the landlord may first issue a verbal warning. If non-payment continues, the landlord can issue a written notice demanding all outstanding rent and request the tenant to vacate the property within two months, and may terminate the rental contract.
