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House rent paradox

Economists call for policies to protect both tenants and house owners


Published : 29 Apr 2020 09:40 PM | Updated : 30 Aug 2020 08:32 PM

As most people continue to lose earning opportunities due to the corona crisis, paying house rent for millions of tenants is increasingly becoming huge burden amid the corona crisis.

On the other hand, many discontented house owners, especially those who survive only on rent and those who also depend on rent money for repaying home loans, are also demanding a way out from such crisis.

Economists call for immediate state policies to waive household tax by municipal authorities and also suspend paying bank loan installments until the corona crisis is over. They also recommend that there should be some government support to initiate negotiation between house-owners and tenants on the issue of paying rents.

The experts strongly suggest facilitating the above policies so that the house-owners are not under pressure to force collecting rents but instead show humanely attitude to let the occupants to continue to stay without paying any rent or even consider dues at reduced rate.
Most of the people from all over the country, including Dhaka, have been stay at home since March 26 to prevent the spread of coronavirus. In such a situation millions of tenants are out of work and starting to exhaust their savings many of who are unable to pay their rent.

On the issue, the Planning Minister M A Mannan told Bangladesh Post, “The government has not yet taken any decision in this regard. In this case, my personal opinion is that renting a house is a business like any other business. This is an income source of a house owner. Again, many of the tenants are now in financial crisis. We are providing or trying to provide financial assistance to various affected businesses. So, these issues need to be taken to the judiciary.”

Nurul Abdullah who is a small entrepreneur staying in city’s Shewrapara, said, “My house owner had been asking for rent money since last few days. I told him about my inabilities to pay now as I do not have any work to earn. So, I sought some more time from him to pay my rent but he would not agree and instead he misbehaved with me.”

Meanwhile, to express solidarity to millions of such tenants who are suffering due to the crisis an organization called ‘Natun Dhara Bangladesh’ recently staged a hunger strike in front of the National Press Club demanding waiver of house rent.

In a statement, the tenants 'platform, the ‘Varatia Parishod’ (Tenants' Council), demanded a three-month waiver of house rent as the source of income of about 5o lakh low-income people in the capital due to shut down of economical activities.

Baharane Sultan, central president of the Varatia Parishad, said “Millions of people are now jobless across the country due to coronavirus. Low income people do not have money. During such an epidemic, we strongly demand the government to announce a three-month (April, May and June) house rent waiver.”

Economist Anu Muhammad, a Professor of Jahangirnagar University, said, “All house owners should keep in mind that their tenants are also in crisis and so they should treat them with compassion and care.”

He pointed out that there are many house owners who will not die without getting rent. Its really just a question of humanity at a time of such crisis. We cannot afford to behave insanely and evict a tenant just bcause he or she is not able to pay his or her rent.

Atiqul Islam, mayor of Dhaka's North City Corporation, told reporters, "Many house owners have built houses seeking bank loans. Even then, I would say that no tenant should be evicted for not being able to pay their rent. House owners need to consider the matter. The tenant and the house owners have to come up with an understanding.”

Atiqul also said, “The Dhaka North City Corporation authorities will soon create a database of house owners and tenants. Low-income people who are unable to pay rent should discussed with the government. We need to talk to those who are policy makers about this.”

According to media reports, several house owners in different parts of the country, including Dhaka, have waived their house rents due to the disaster. On the other hand, many house owners have also mistreated with their tenants.

Rafiqul Islam of Tangail's Mirzapur Municipality's Kutubbazar area has reportedly picked up a brawl over the issue of paying house rent and broke his tenant’s hand on Wednesday.

Kulsum Begum, wife of a tenant Salim in the capital also complined of being misbehaved by the house owner when her husband had expressed inability to pay house rent.

The social organization Nagorik Bikash & Kollyan (Citizen Development and Welfare)-‘Sailor’ has called for a reduction in house rents and a waiver of the holding tax and utility bills.


Considering the benefits of both the house owners and the tenants, the civic organization Nabik has proposed to revise the house rent at a reasonable amount agreeable by both the parties.

The proposals are: City corporations, municipalities to waive the holding tax of homeowners till the time the corona crisis is declared over by the government. Homeowners who have a bank loan against the construction of a house should suspend paying their bank loan installments for at least three to six months.

The proposals also says: To provide necessary instructions to the commercial banks on behalf of the government in regard to the bank loans. Exemption of water, gas and electricity bills from the concerned agencies during the period of corona crisis. Reduce house rent by half during this time. In some cases, the house owners may consider dues on paying house rents.

Mustafizur Rahman, a prominent fellow at the Center for Policy Dialogue (CPD), said that about 40 lakh poor people in the city have lost the opportunity to earn. Now it is difficult for them to provide food for the family.

He said that the NBR could announce that it would waive some income tax for only those homeowners who show respect and honour their tenants, especially those who are poor. The City Corporation Authority may also consider waiving the municipal holding tax.