A few days ago, when the Dhaka North City Corporation (DNCC) authorities announced that they would take practical steps to control house rent in the capital, it brought hopes of relief in the minds of countless tenants in Dhaka. Although some new legal questions and fears of further rent hike have arisen after announcing detailed guidelines by the DNCC Administrator Mohammad Azaz on 20 January. However, the DNCC has provided explanation that rent determination will be based on negotiation and existing laws within couple of days amid extensive criticism. Earlier, in the wake of a writ petition, the High Court Division of the Supreme Court issued a rule to prepare a policy for determining house rent by the Dhaka North and South City Corporation authorities and those concerned.
Nonetheless,
the purpose of the DNCC’s house rent guidelines should have been to establish
some balance and fairness in an uncontrolled market. Now that has created new
complications in terms of legal validity and practical applicability. The
biggest concern is the provision of maintaining the existing annual rent
increase rate of not more than 15 percent of the market value of the property. It
will ultimately act as a license to skyrocket the rent.
Most
of the instructions given by the DNCC are against the interests of both the
landlords and the tenants, are chaotic, unreasonable and illegal. Although the
DNCC guidelines emphasize on discussions with tenants on various issues, it
does not seem that the DNCC authorities themselves discussed and took opinions
from all concerned before preparing the guidelines. Even if they did, it
appears that they have issued an unplanned guideline of their own accord
without including those recommendations.
For
example, clause 4 asserts that the landlord will give the keys of the roof and
the main gate to tenants subject to conditions. But there is no guidance on
what the conditions may be or what the considerations will be in determining
the conditions.
Further,
clause 5 of the guideline states that the tenant will pay the rent to the
landlord by the 10th of the month. However, according to the House Rent
Control Act, 1991, in the absence of a contract, the rent
is to be paid within the fifteenth day of the following month. As a result, the
legal rights of the tenants have been violated here.
Again,
clause 7 provides that the time for increasing the rent will be June-July. In
reality no tenant will definitely wait for the months of June-July to rent a
house. In that case, if someone rents at other times of the year, the landlord
cannot increase the rent if the two-year period lapse not in June-July, which
is not a logical rule at all and is against the interests of the landlord.
On
the other hand, clause 9 of the guidelines stipulates that a tenant can be
evicted if h/se fails to pay rent on time. But section 18
of the Act has added some more grounds and clarified in which circumstances the
landlord can and cannot evict a tenant. As a result, there is a fear of loss of
interest of both the landlord and the tenant in this regard.
Moreover,
clause 13 has gone beyond the law and determined that the landlord can take one
to three months’ rent in advance. Although the Rent Control Act made it maximum
of one month. Therefore, it creates opportunity to ask for an additional
advance from the tenants. On the other hand, clause 15 mentions that the
regional executive officer should be informed if the landlord and tenant
association cannot resolve the dispute. But there is no detail about within
which time limit and in what manner the dispute will be resolved. Though the
regional executive officer does not have the power to resolve such dispute as
per law. The law shall prevail if there is conflict between the guidelines and
the law. As a result, it is not at all clear whose interests this guideline
will actually protect.
On
the other hand, there is no mention of how the obligations imposed on the
homeowner or tenant will be ensured or held accountable, or who will take care
of them. Most importantly, what will be the consequences if someone does not
comply with these? And does the DNCC have any legal power or practical ability
to implement this directive?
In
addition, other administrative structures required to implement the guidelines
are inadequate; for example, ward-based owners and tenants’ associations and
the arbitration system through them are not prevalent in our system. Therefore,
the possibility of arbitration being effective without clear legal provisions
is low. Overall, the directive is largely advisory; its legal basis and
practical implementation framework are both extremely weak.
In
reality, the House Rent Control Act, 1991 is ineffective in Bangladesh. Rules
have not been formulated even today; the regulatory post has been vacant for
decades. Interestingly, the provision of increasing the rent by up to 15
percent yearly (after the first two years) is within section 15
of the Act and the DNCC, as a local authority, does not have the power to amend
it. The main problem with the House Rent Control Act, 1991 is that there is no
clear and realistic method for determining the market price. Although both the
law and guidelines mention about the standard rent determination; but the
detailed method and considerations for such standard rent determination is not
provided.
Adopting
a rational approach to rent control (such as setting realistic maximum annual
percentages based on area and amenities and revising them from time to time),
ensuring monitoring and accountability, establishing strong, independent and
accessible dispute resolution body (such as a House Rent Tribunal or Board),
awarding costs to the winning party, etc., are urgent at this moment to uphold
the interest of both the homeowners and tenants.
The
government should therefore now introduce a fair rent determination system that
takes into account the local market analysis, the quality of the building, the
amenities provided, the area, the quality of the civic services, the liveability
and the income capacity of the tenant, instead of the existing ‘15% of the
market value’. Additionally, bringing the necessary amendments to the House
Rent Control Act, 1991 immediately; formulating rules under the Act; creating
the post of rent controllers in every city corporation and municipality and
appoint the necessary number of officers; establishing ward based separate dedicated
body to resolve housing rental disputes; strictly implement and monitor the
provisions of the law etc., are obvious now.
Dhaka’s
tenants, who are one of the backbones of the city’s economy; have long been
victims of neglect, deprivation and exploitation. An effective and fair rent
determination requires a realistic and strong legal framework; so that the
rights of both parties are specific and a speedy redressal process is within
everyone’s reach. The government and the local authorities must focus on
establishing a quickly implementable, balanced and transparent legal framework,
not an imaginary policy. Otherwise, this guideline will remain on paper as
always, and homeowners and tenants will bear the consequences. Now is the time
to ensure a modern, up-to-date and humane legal protection for the housing
market of the country.
Published on Dhaka Opinion Magazine as Commentary on Law on 1 February 2026.
Published on Counter Point BD as Analysis on 3 February 2026.
















