DNCC issues house rent guidelines: Rent cannot be hiked before 2 years

The Dhaka North City Corporation (DNCC) has released a comprehensive set of guidelines to implement the House Rent Control Act, 1991, aimed at protecting the rights of both tenants and landlords. The guidelines were officially unveiled by DNCC Administrator Mohammad Ejaz during a press conference held today, Tuesday (January 20), at the Nagar Bhaban in Gulshan.

Administrator Mohammad Ejaz noted that a culture has emerged where rent is hiked every January. However, according to the new directive, the appropriate time for any rent adjustment is the start of the fiscal year, specifically June–July, and it must be linked to the holding tax paid to the City Corporation.

Key Mandates for Landlords

The 16-point guidelines establish strict standards for property maintenance and security:

• Utility Services: Landlords must ensure uninterrupted connections for gas, electricity, and water, along with daily household waste collection.

• Emergency Access: In light of increasing risks like fire and earthquakes, landlords are now required to provide every tenant with keys to both the roof and the main gate.

• Greenery: Landlords and tenants (with prior approval) are encouraged to plant greenery on rooftops, balconies, and open spaces in front of the house.

• Security Actions: Any security or disciplinary measures taken by the landlord must be communicated to the tenants, and their consent must be obtained through logical bilateral discussion before implementation.

Rent Payment and Hike Restrictions

The guidelines introduce a more structured financial relationship between the two parties:

• Payment Deadline: Tenants must pay the rent by the 10th of every month.

• Receipts Required: Landlords must provide a written rent receipt, and tenants must ensure they collect a signed receipt every month.

• The 2-Year Rule: Once a "standard rent" is effective, it must remain unchanged for two years. Rent cannot be increased under any circumstances before this period ends.

• Hike Limit: Any annual rent increase must not exceed 15 percent of the prevailing market value of house rent in that specific area.

• Advance Payment: Landlords cannot take more than 1 to 3 months of rent as an advance.

Eviction and Legal Contracts

The DNCC has clarified the process for terminating a tenancy:

• Written Contracts: A formal written agreement is mandatory, clearly stating the rent amount, advance deposit, and terms of termination.

• Notice Period: For residential buildings, a two-month notice is required from either side to cancel the contract.

• Failure to Pay: If a tenant fails to pay on time, the landlord must first issue a verbal warning. If the issue persists, a two-month written notice for eviction can be served.

Dispute Resolution

To handle conflicts, the DNCC has directed the formation of Ward-based Landlord and Tenant Associations. Any issues should first be addressed through discussion within these associations. If no resolution is reached, the matter should be escalated to the Regional Executive Officer (Zonal Head) of the City Corporation.