The House Rent Control Act, 1991: An Overview
The House Rent Control Act of 1991 is a landmark legislation in Bangladesh designed to regulate the relationship between landlords and tenants, ensuring fair rental practices while balancing the interests of both parties. Replacing earlier rent control laws that dated back to the colonial era, this Act introduced clearer definitions, standardized procedures for rent fixation and revision, and grievance redress mechanisms to resolve disputes.
Historical Background
Prior to 1991, rent control in Bangladesh was governed by multiple overlapping ordinances that had become outdated and difficult to enforce. Rapid urbanization, growing demand for rental housing, and frequent clashes between tenants and landlords highlighted the need for a modern, cohesive legal framework. In response, the government enacted the House Rent Control Act, 1991, with the objective of streamlining rent regulation and protecting vulnerable tenants from arbitrary eviction and excessive rent hikes.
Key Objectives
-
Tenant Protection: Safeguard tenants from unjust eviction and sudden rent increases.
-
Transparent Rent Fixation: Establish clear criteria for determining fair rent based on property size, location, age, and amenities.
-
Dispute Resolution: Provide a simplified tribunal system for speedy adjudication of rent-related disputes.
-
Balanced Rights: Ensure landlords receive reasonable returns on their property investments while promoting social welfare.
Major Provisions
-
Definition of ‘Fair Rent’
The Act defines “fair rent” as the amount determined by considering factors such as the building’s condition, locality, services provided, and comparative rents in the vicinity. -
Rent Fixation and Revision
-
Tenants or landlords may apply to the Rent Controller’s office to fix or revise rent.
-
No rent can exceed 10% of the property’s annual valuation, subject to revision every three years or as prescribed.
-
-
Security of Tenure
-
Tenants enjoying tenancy under the Act cannot be evicted without due process.
-
Grounds for lawful eviction include non-payment of rent, subletting without permission, or use of premises for illegal purposes.
-
-
Eviction Procedure
-
Landlords must obtain an eviction order from a Rent Controller.
-
Summary proceedings are mandated to ensure quick resolution.
-
-
Rent Tribunal and Appellate Authority
-
Disputes are first heard by the Rent Controller; appeals lie with the Rent Tribunal.
-
Further appeals can be made to the High Court Division.
-
Impact and Challenges
Since its enactment, the House Rent Control Act, 1991 has provided tenants with greater security and clarity, reducing arbitrary rent hikes and unlawful evictions. It has also guided landlords toward fair rental returns through standardized valuation methods. However, challenges persist:
-
Outdated Valuation Tables: Property valuations often lag behind current market rates, leading to under- or over-regulation.
-
Enforcement Gaps: Limited administrative capacity and awareness sometimes hinder timely dispute resolution.
-
Urban Growth Pressures: Rapid development and shifting real estate markets call for periodic updating of the law’s parameters.
Conclusion
The House Rent Control Act, 1991 remains a crucial instrument in Bangladesh’s housing sector, striving to maintain equitable landlord–tenant relations. To meet contemporary urban challenges, ongoing reforms—such as revising valuation schedules, expanding tribunal resources, and raising public awareness—are essential. By strengthening these areas, the Act can continue to serve its founding purpose: ensuring access to fair and secure rental housing for all.