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Landlord Tips

Navigating Rent Hikes Legally and Professionally in Dhaka

B
By BariShamlai
5 April 20267 min read
Raising rent without warning is the single fastest way to lose a good tenant. But never raising rent means your real income erodes every year with inflation. The answer is process — and Bangladesh law actually gives landlords a clear path.

What the Law Says

Landlord and tenant reviewing a rental contract

Bangladesh's Premises Rent Control Act and its successor regulations require landlords to give advance written notice before any rent increase. The standard is:

  • Minimum 30 days' written notice before the new rent takes effect
  • Notice must state the new amount, the effective date, and the reason (optional but advisable)
  • Hikes above a certain percentage in controlled areas may require local authority approval — check with RAJUK or your City Corporation ward office

In practice, most Dhaka landlords and tenants operate on informal agreements. Written notice is rarely given. This is exactly why conflicts happen — tenants feel ambushed; landlords feel their reasonable request was ignored.

How Much Can You Raise?

There is no universally mandated cap in uncontrolled market areas of Dhaka, but practical norms have emerged:

Market ConditionTypical Annual HikeNotes
Inflation-tracking5–8%Common in mid-range areas
Below-market correction10–15%When rent was frozen for years
Premium area upgradesUp to 20%After significant renovation

Going above 15% in one step almost always results in tenant departure or dispute. Consider splitting a large correction over two years.

The 5-Step Process for a Conflict-Free Rent Hike

Step 1 — Research the market first. Before quoting a new number, check what comparable flats in your neighbourhood are renting for. Tenants will do this research too. An evidence-based number is far easier to defend.

Step 2 — Give at least 60 days' notice, not 30. Legally you need 30, but 60 days signals respect and gives a good tenant time to plan financially. This alone dramatically reduces friction.

Step 3 — Deliver notice in writing. A WhatsApp message is not enough. Write a short letter or typed notice, sign it, and give one copy to the tenant. Keep a copy for yourself. Bari Shamlai lets you log this in the tenant's file.

Step 4 — Explain the reason briefly. "Our maintenance costs have risen 18% this year and this is the first increase in two years" is far more persuasive than a number with no context.

Step 5 — Be open to a small negotiation window. If a tenant counters with a modest reduction, consider accepting. Keeping a reliable, quiet tenant at ৳1,000 below your ask is better than three months vacant while finding a replacement.

What to Do If the Tenant Refuses

If a tenant refuses to accept the new rate and you cannot reach agreement:

1. Issue formal written notice to vacate (typically 30–60 days depending on your agreement)

2. Document all communication

3. Do not cut utilities or enter without notice — these actions expose you to legal liability

4. If the tenant refuses to leave after proper notice, file a case with the local Rent Controller or pursue eviction through the civil court

Prevention is always cheaper than dispute. A professional process — written notice, fair amount, clear timeline — resolves 90% of rent-hike conversations without conflict.

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