Nepal | September 28, 2020

New provisions of house rental agreement enacted

Himalayan News Service
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Kathmandu, November 5

Dispute between tenants and landlords in urban areas is a common problem.

A new provision stipulated by the government is expected to bring the tenants and landlords closer and serve their shared concerns and safeguard the interests of both the parties. It requires the landlord and tenant to enter into a 12-point agreement by affixing their respective signatures before giving or taking any house, flat, apartment and room on rent. They should also present a witness on their behalf at the time of signing of the deed as prescribed by the Ministry of Federal Affairs and Local Development.

The Municipality Planning and Management Section of the ministry has issued the format of rental agreement required to be concluded between the landlord and tenant. This provision is also aimed at making the collection of rental tax systematic and transparent.

Kathmandu Metropolitan City, and all 12 sub-metropolitan cities and 204 municipalities have been directed to cause the landlords to enter into the agreement with tenants in their areas.

The terms and conditions set forth in the agreement has stated that the landlord and tenant shall decide the monthly rent on mutual consent and mention the same in the deed.

The bills of electricity, water, waste disposal and use of other utilities shall be paid by the tenant while the landlord shall pay the rental tax to the government.

Similarly, the tenant will be responsible for cleanliness, safety and general maintenance of the house and utilities. If repair and maintenance is needed however the cost incurred thereto shall be borne by the landlord.

Both the parties should serve no less than a 60-day notice to each other if any of them wish to vacate the house prior to the expiry of the agreement. But if they do not abide by the terms and conditions prescribed at the time of signing of the paper, the agreement may be terminated at any time.

“Rent may be increased on mutual consent, but the landlord still reserve the rights to increase the rent after two years of the signed  agreement,” read the terms and conditions.

A version of this article appears in print on November 06, 2016 of The Himalayan Times.

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