Bangladesh Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Bangladeshi landlord and tenant laws are judged by the Global Property Guide to be Pro-Landlord between landlord and tenant. In practice, enforcement of laws can be weak and inconsistent, which sometimes puts tenants at risk of exploitation, especially in rapidly urbanizing areas where demand for housing is high. Landlords will still have significant informal power, particularly in markets where rent control does not apply or is poorly enforced.

Rents: Can landlord and tenant freely agree rents in Bangladesh?

Landlords and tenants can generally freely agree on the rent amount when entering into a tenancy agreement. There are no strict government-imposed limits or caps on rent in the private rental market, so the rent is usually determined by mutual negotiation based on factors like location, property condition, demand, and market rates. 

In areas or cases where rent control laws apply, rents may be subject to government review or ceilings, which can restrict how much landlords can charge or increase rent. Any rent increase during the tenancy generally requires notice and may be regulated depending on the specific type of property and contract.

Deposits

In Bangladesh, the landlord-tenant relationship, including the handling of security deposits, is regulated by the Premises Rent Control Act of 1991. According to Section 10 of this Act, landlords are not allowed to charge any additional fees such as premiums, security deposits, or similar payments beyond the agreed rent when granting tenancy.

Although the law sets a limit on security deposits, some landlords—particularly in high-demand areas—may still ask for higher amounts. Tenants should make sure that the terms regarding the security deposit are clearly stated in the lease agreement and consider pursuing legal action if they feel the landlord’s demands violate the law.

What rights do landlords and tenants have in Bangladesh, especially as to duration of contract, and eviction?

Regarding the duration of contracts, tenancy agreements can be either fixed-term or periodic, but the law does not strictly regulate minimum or maximum lease lengths. The contract terms are typically agreed upon by both parties. However, the Premises Rent Control Act provides some protections to tenants to prevent arbitrary eviction during the tenancy period.

As for eviction, landlords can only evict tenants under specific legal grounds laid out in the Premises Rent Control Act. Common reasons for eviction include non-payment of rent, violation of tenancy terms, or the landlord needing the premises for personal use. However, eviction cannot be carried out without a proper legal procedure. The landlord must apply to the Rent Controller or court for an eviction order. Tenants have the right to contest eviction proceedings and may request extensions or remedies if the eviction would cause undue hardship. Moreover, the Act prohibits landlords from demanding excessive security deposits or premiums beyond the rent, and tenants have the right to a refund of the security deposit at the end of the tenancy, subject to lawful deductions for damages or unpaid rent.

Legislation

In Bangladesh, the rights of landlords and tenants are primarily governed by the Premises Rent Control Act, 1991, along with common law principles and contractual agreements.

How effective is the legal system in Bangladesh?

In practice, eviction procedures can be lengthy due to legal formalities and court backlogs, so landlords often face challenges in regaining possession quickly. Tenants, meanwhile, benefit from legal protections that aim to balance their security of tenure with landlords’ property rights.

History: Recent changes in landlord and tenant law in Bangladesh

Recent developments in Bangladesh's landlord-tenant law have highlighted the need for reform and better enforcement of existing regulations. Despite the Premises Rent Control Act, 1991, which sets guidelines for rent control and tenant protection, its implementation has been inconsistent. Despite these calls for reform, the enforcement of the Premises Rent Control Act remains a significant issue, leaving tenants vulnerable to exploitation and landlords with limited accountability. The lack of effective implementation underscores the need for comprehensive legal reforms and better enforcement mechanisms to protect tenants' rights in Bangladesh.