The Premises Rent Control Act 1991 (House Rent Act) Explained in Plain English

Ask ten landlords in Dhaka about the Premises Rent Control Act, 1991 (commonly called the House Rent Control Act; in Bangla, বাড়ি ভাড়া নিয়ন্ত্রণ আইন) (Bari Bhara Niyantran Ain, 1991) and you may get ten different answers. Some believe it no longer matters, some quote rules they heard from a neighbour, and many tenants have never heard of it at all. Yet it remains the central law governing the relationship between landlords and tenants of houses, flats, shops and other premises in Bangladesh's urban areas.

This article explains, in plain English, what the Act is for, the key concepts it introduces, what it says in broad terms about rent, advances, receipts, repairs and eviction, the role of the Rent Controller, and how it fits alongside the written agreements that most tenancies rely on today. It is designed to help landlords and tenants understand their position and know when to seek proper legal advice. It deliberately avoids quoting section numbers and exact figures; read the Act itself or ask a lawyer before acting on any specific point.

Disclaimer: This is general information, not legal advice. The Act has been interpreted by courts and may be affected by amendments, rules or directions. For any dispute or important decision, consult a qualified lawyer and read the current official text.

Why a Rent Control Law Exists

Rent control laws exist in many countries to balance two interests: landlords' right to a fair return on their property, and tenants' need for security and protection from arbitrary rent increases or eviction. In fast-growing cities like Dhaka and Chattogram, where demand for housing far outstrips supply, tenants often have weak bargaining power. The 1991 Act was enacted to set ground rules on rent, advances, receipts and eviction, and to provide an official forum for disputes.

Where and to What the Act Applies

In broad terms, the Act applies to "premises", which covers buildings or parts of buildings let for residential or non-residential use, in areas where the law is in force, primarily urban areas such as city corporations and municipalities. Some categories of property, for example certain government-owned premises, may be treated differently. If you are unsure whether your property is covered, a lawyer can confirm quickly.

Key Terms in Plain English

Standard Rent: The Heart of the Act

The Act's central idea is standard rent: a fair rent determined by reference to the value of the premises rather than simply whatever the market will bear at a moment of shortage. The Act sets out how standard rent is to be calculated, broadly linked to the market value of the premises, and allows the Rent Controller to fix or revise it on application by either the landlord or the tenant.

In practice, most rents in Bangladeshi cities are agreed privately and never formally fixed by a Rent Controller. But the concept matters: if a dispute arises about whether rent is excessive, or about an increase, the standard rent framework is what the Rent Controller and courts will look to. Landlords should understand that simply charging "what the neighbour charges" is not a legal standard.

Rent increases

The Act contains provisions restricting how often and by how much rent can be increased above the standard rent, and prohibits increases that do not follow its rules. Exact limits should be checked in the Act. For practical advice on reviewing rent fairly, see raising the rent in Bangladesh.

Advance Rent, Deposits and Premium (Salami)

One of the most talked-about parts of the Act concerns money taken at the start of a tenancy. The Act restricts landlords from demanding premiums, salami or large advances as a condition of letting, and places limits on advance rent that are stricter than much of today's market practice, especially in commercial leasing where large advances and position money are common.

What this means in practice:

• Tenants have a legal basis to question unusually large advances or premiums.
• Landlords who take advances should document them clearly in the agreement, give receipts and ensure they are adjusted or refunded as agreed.
• Both sides should understand that the legal position may differ from "what everyone does", and should take advice before large sums change hands.

Why documenting an advance matters: an illustration

For example (illustrative): a tenant rents a flat at Tk 20,000 per month and pays Tk 40,000 as advance. The agreement says the advance will be adjusted at Tk 5,000 per month. That means the tenant pays Tk 15,000 in cash or transfer each month, and after Tk 40,000 / Tk 5,000 = 8 months the advance is fully adjusted and full rent of Tk 20,000 resumes from month 9.

If the landlord gives receipts showing only "Tk 15,000 received" without mentioning the adjustment, a dispute in month 6 could easily turn into an argument about whether Tk 5,000 a month is "due". Receipts that show rent due, amount adjusted from advance and amount paid make the position clear to anyone, including a Rent Controller or court. Whatever amount of advance is involved, and whether or not it matches the Act's expectations, clear records protect both sides.

Our guide on advance rent and security deposits in Bangladesh covers practical handling and record-keeping.

Rent Receipts: A Simple but Important Duty

The Act requires landlords to give tenants a written receipt for rent received, and it provides a mechanism for tenants when a landlord refuses to accept rent, such as depositing it through the Rent Controller. This is one of the most practical parts of the law:

• A receipt protects the tenant from being accused of non-payment.
• It also protects the landlord, because it proves exactly what was paid and for which month.
• Where a landlord refuses rent to create an artificial default, the deposit mechanism protects the tenant.

A good receipt shows the tenant's name, premises, month, amount in figures and words, payment method, date and the landlord's signature. See our guide to rent receipts in Bangladesh.

Repairs and Essential Services

The Act recognises the landlord's responsibility to keep premises in a reasonable state and deals with situations where necessary repairs are not carried out. It also protects tenants against the withholding of essential services, such as water or electricity supply, as a way of pressuring them. Cutting off utilities to force a tenant out or to extract a rent increase is unfair and can expose a landlord to legal consequences.

For day-to-day practice, a written agreement should set out which repairs the landlord handles (structure, plumbing lines, wiring, roof) and which the tenant handles (minor items, damage they cause).

Eviction: When Can a Landlord Recover Possession?

The Act protects tenants from arbitrary eviction as long as they pay rent and observe the tenancy terms, while giving landlords grounds to recover possession. In broad terms, grounds recognised by the Act and courts include:

• Non-payment of rent as required.
• Subletting without the landlord's written consent.
• Use of the premises for purposes other than those agreed, or for unlawful or immoral purposes.
• Damage or nuisance causing material harm to the property or neighbours.
• Landlord's genuine need of the premises, for example for own occupation or reconstruction, subject to the conditions in the law.
• Expiry of the tenancy and proper notice, subject to the Act's protections.

Eviction must follow proper legal process. A landlord cannot lawfully throw a tenant's belongings out, change locks or cut utilities to force departure. The notice period and procedure depend on the tenancy type and the law; for details, see our eviction notice guide and speak to a lawyer.

The Rent Controller and Disputes

The Act provides for Rent Controllers appointed by the government who can, among other things, fix standard rent, accept rent deposits where a landlord refuses payment and decide certain disputes. Orders may be subject to appeal or revision under the law. In practice, many disputes are also taken to civil courts, particularly eviction suits.

Few landlords or tenants in Dhaka use the Rent Controller route for everyday disagreements; most issues are settled by negotiation. But knowing that an official forum exists encourages both sides to behave reasonably.

How the Act Interacts With Your Written Agreement

Most tenancies today rely heavily on a written agreement on stamp paper. It is important to understand the relationship:

• The agreement governs the details both parties chose: rent, due date, deposit, utilities, notice, house rules.
• The Act provides the legal framework and protections that generally cannot be removed by private agreement.
• A clause that conflicts with a mandatory protection in the Act may not be enforceable.

So a well-drafted agreement should be consistent with the Act. When in doubt, have a lawyer review your template once; you can then reuse it with confidence.

What the Act Means in Practice Today

There is an honest gap between the law and the market. Many landlords have never applied for standard rent, many tenants accept advances above what the Act contemplates, and enforcement through Rent Controllers is limited. Public debate and court proceedings about updating and enforcing rent control in Bangladesh have taken place over the years, and changes may come.

For a sensible landlord, the practical takeaways are clear:

1. Give receipts for every payment.
2. Keep advances and deposits reasonable, documented and refundable as agreed.
3. Raise rent moderately, with written notice and within your agreement.
4. Never use utility cut-offs or harassment.
5. Follow legal process for eviction.
6. Keep a lawyer's contact for anything unusual.

Quick Reference: Rights and Duties

Common Misunderstandings

• "The Act doesn't apply any more." It remains law; limited enforcement is not the same as repeal.
• "My agreement overrides everything." Not if it conflicts with mandatory protections.
• "I can evict a tenant with a verbal notice." Eviction requires proper notice and, if contested, legal process.
• "Receipts are optional if we trust each other." Receipts are a legal duty and protect both sides.
• "Cutting water is a quick way to get rent." It is unfair and can create legal liability.

Final Thoughts

The Premises Rent Control Act 1991 is not just an old law gathering dust. Its core principles, fair rent, limited advances, written receipts, maintained premises and eviction only through lawful grounds, are simply good practice. Landlords who follow them rarely end up in disputes, and tenants who know them can protect themselves calmly. For anything specific, read the Act and consult a lawyer.

Much of what the Act expects comes down to good records: receipts for every payment, clear advance and deposit accounts, and written agreements. Bariwala ERP helps landlords keep those records by storing agreements, recording advance payments, issuing receipts for every rent payment and maintaining a clear due list, so you always have the paperwork a fair tenancy needs.