Dhaka is one of the most crowded rental markets in the world. Millions of families, students and professionals rent flats here, and a very large share of the city's homes are owned by individual landlords who rent out one floor, a few flats or a whole building. If you are one of them, you already know that house rent in Dhaka involves far more than handing over keys and collecting money on the 5th of each month. There are advance and deposit customs, police information requirements, utility bills from DESCO or DPDC, WASA and Titas, tax obligations, repairs, and the everyday business of keeping good tenants happy.
This guide brings everything together for Dhaka landlords, whether you are renting out your first flat in Mirpur or managing a building in Dhanmondi, Uttara or Old Dhaka. You will learn how to price a flat, what advance and security deposit (jamanat) practices are common, how to screen tenants fairly, what to put in the agreement, how to handle utilities and service charges, how to collect rent smoothly, and which legal and tax points to check. Each section links to deeper guides for when you need more detail.
Understanding the Dhaka Rental Market
Rent levels in Dhaka vary hugely by area, road access, building age, lift and parking, floor, size, water supply and even distance from schools and offices. A flat on a main road with a lift and generator in a well-known residential area commands a very different rent from a similar-sized walk-up flat in an inner lane with water problems.
Demand also follows the calendar. Families often move around the start of the school year (December-January), and there is commonly more movement after Eid holidays. Tenants in Dhaka usually give and expect notice around the start of a month, and to-let signs traditionally go up at the start of the month before a vacancy.
Types of tenants you will meet
- Families looking for 2-3 bedroom flats near schools and offices.
- Working professionals and couples seeking smaller flats with good transport links.
- Bachelors and students sharing larger flats or seats, often near universities and business districts.
- Expats and corporate tenants in areas such as Gulshan, Banani, Baridhara and Bashundhara, typically with company leases.
- Commercial tenants for ground-floor shops, offices, clinics or coaching centres, where zoning and building approvals allow.
How to Set the Right Rent
Overpricing leads to months of vacancy; underpricing leaves money on the table for years. A practical method:
- Compare similar flats nearby: same area, similar size, floor, lift, parking and age. Look at to-let signs and online listings, and ask local agents or neighbours.
- Adjust for features: lift, generator, gas line, parking, water supply reliability, furnished or not, south-facing and ventilation.
- Calculate your costs: holding tax, maintenance, service charge you pay for common areas, loan instalments, and expected vacancy.
- Test the market: if you get many calls but no takers, the flat or price may need adjusting; if it rents in days, you may be under market.
For example (illustrative): a landlord compares three similar 1,200 sq ft flats nearby advertised at Tk 22,000, Tk 24,000 and Tk 25,000. Their flat has a lift and generator, which two of the others lack, but no car parking. An asking rent of Tk 24,000 plus a clearly stated service charge is a reasonable starting point. If the flat stays empty for one month at Tk 26,000, the landlord loses Tk 26,000, more than a full year of a Tk 2,000 difference (Tk 2,000 x 12 = Tk 24,000). Pricing slightly below the top of the range and renting quickly often wins.
For a deeper method, see how to calculate a fair rent in Bangladesh.
Advance Rent and Security Deposit in Dhaka
Dhaka landlords commonly take some combination of advance rent and a security deposit (jamanat) at the start of a tenancy. Customs vary: some take one or two months' advance adjusted against future rent, some take a refundable security deposit, and commercial leases often involve larger advances or position money (salami).
| Term | What it is | What happens at the end |
|---|---|---|
| Advance rent | Rent paid ahead, usually adjusted against future months | Gradually adjusted or used for the last month(s) |
| Security deposit (jamanat) | Refundable amount held against damage or unpaid dues | Returned after inspection, minus documented deductions |
| Position money (salami) | Usually in commercial shops, often non-refundable or partly refundable by agreement | As per the written agreement |
The Premises Rent Control Act, 1991 contains provisions relating to advance rent and deposits. Read our plain-English explainer of the Premises Rent Control Act 1991, and confirm current limits with a lawyer before setting large amounts. Whatever you take, record it in the agreement and give a receipt.
Advertising Your Flat: To-Let Done Right
- A clear to-let sign on the gate with bedroom count, availability date and a phone number.
- Online listings with honest photos in daylight, rent, service charge, size, floor, lift, generator, gas and parking details.
- Information for the caretaker so he can show the flat and answer basic questions.
- A short list of house rules (visitor hours, parking, pets, garbage) shared upfront to avoid surprises.
Be honest about problems such as water supply hours or no gas line. Tenants who discover hidden issues after moving in are the first to leave.
Screening Tenants Fairly
A careful but fair screening process protects you without discriminating. Ask every applicant for the same things:
- National ID (NID) or passport for adult occupants.
- Workplace or business details and a contact person.
- Previous address and, if possible, the previous landlord's number.
- Number of occupants and family members.
- An emergency contact.
Decide on objective criteria, such as ability to pay and verifiable identity, and apply them to everyone. Do not refuse tenants on the basis of religion, ethnicity or similar personal characteristics. For step-by-step checks, see tenant screening in Bangladesh.
Police tenant information
In Dhaka, the police have for years asked landlords to submit tenant information, commonly through the DMP tenant information form, in person or online. Keep a copy for your records and update it when tenants change.
The Rental Agreement
A written agreement protects both sides. It should include at least:
- Names, addresses and NID numbers of landlord and tenant.
- Flat details: address, floor, flat number, size and any furniture or fixtures.
- Monthly rent, service charge, due date and payment method.
- Advance and security deposit amounts, and how they are adjusted or refunded.
- Utility responsibilities: electricity, gas, water, internet.
- Term of tenancy, renewal and rent increase terms.
- Notice period for either side to end the tenancy.
- House rules, maintenance responsibilities, subletting prohibition.
- Signatures of both parties and witnesses.
Agreements are typically written on non-judicial stamp paper; whether registration is required depends on the term and nature of the lease under the Registration Act 1908 and related rules, so take legal advice for longer leases.
Utilities and Service Charges
Electricity
Most Dhaka flats have individual prepaid or postpaid meters from DESCO (largely north Dhaka) or DPDC (largely south Dhaka). Tenants usually pay their own meter. If you use a shared meter with sub-meters, read them on a fixed date and bill transparently.
Water
Dhaka WASA typically bills the building connection, so landlords often include water in service charge or split it fairly. Explain the method at move-in.
Gas
Titas Gas piped connections are often billed per burner at a fixed monthly amount for non-metered connections. Clarify whether the gas bill is included in rent or paid separately. Some newer buildings have no piped gas, so tenants use LPG cylinders.
Service charge
Covers guards, caretaker, cleaning, lift, generator and common electricity. Show tenants how it is calculated. Write the list of what it covers into the agreement so there are no surprises.
Collecting Rent Smoothly
- Set one due date for everyone, commonly between the 1st and 10th of the month.
- Offer bank transfer and mobile wallets (bKash, Nagad) as well as cash.
- Give a receipt for every payment stating flat, month, amount and method.
- Send a polite reminder a day or two after the due date, then a firmer written reminder if needed.
- Keep a ledger for each tenant: rent, service charge, utilities, advances and payments.
For example (illustrative): a landlord has 6 flats at Tk 20,000 and 2 flats at Tk 15,000. Expected monthly rent is (6 x Tk 20,000) + (2 x Tk 15,000) = Tk 120,000 + Tk 30,000 = Tk 150,000. By the 10th, Tk 125,000 is collected, so dues stand at Tk 25,000, perhaps one Tk 15,000 flat and half of a Tk 20,000 flat. A simple due list makes it obvious exactly who to follow up with, instead of relying on memory.
Furnished, Semi-Furnished or Unfurnished?
Most Dhaka flats are rented unfurnished, with fittings such as fans, lights, kitchen cabinets and bathroom fixtures included. Semi-furnished flats may add wardrobes, air conditioners or a geyser. Fully furnished flats are more common in expat and short-stay markets.
- Unfurnished: lower maintenance and fewer disputes, suits long-term family tenants.
- Semi-furnished: air conditioners and geysers can justify higher rent, but you must service and repair them.
- Furnished: higher rent, but also higher wear, insurance risk and more detailed move-in and move-out inventories.
Whatever you choose, attach a signed inventory with photos to the agreement listing every item and its condition. It turns move-out discussions from arguments into a quick checklist.
Running the Tenancy: Repairs and Renewals
Maintenance and repairs
Agree clearly who fixes what. Common practice in Dhaka: the landlord handles structural issues, plumbing lines, wiring, water tanks, pumps, lift and roof leaks; the tenant handles day-to-day items such as bulbs and damage they cause. Respond to complaints quickly and keep a log. Plan pre-monsoon roof and drain checks and regular tank cleaning.
Rent increases and renewals
Many Dhaka tenancies see rent reviewed yearly, often at renewal or in January. Keep increases reasonable, give written notice well in advance and explain the reasons. Sudden large increases drive good tenants away and lead to vacancies that cost more than the increase. Our guide to raising rent in Bangladesh covers timing, amount and communication, including what the 1991 Act says.
Taxes and Legal Duties
- Holding tax: paid to DNCC or DSCC on the property; keep receipts.
- Income tax: rental income is taxable under the Income Tax Act, 2023; you may need to file a return and keep records of rent received and allowable expenses.
- VAT: may apply to certain commercial rents; residential rent is generally treated differently. Check with a tax adviser.
- Tenant information: submit and update police tenant information as required.
Disclaimer: This guide is general information, not legal or tax advice. Laws, rates and procedures change; confirm current requirements with a lawyer, tax adviser, the NBR or your city corporation.
Common Mistakes Dhaka Landlords Make
- No written agreement, or an agreement copied without reading it.
- Cash without receipts, which causes disputes later about what was paid.
- Unclear utility and service charge rules, the most common source of monthly arguments.
- Overpricing and leaving the flat empty for months.
- Skipping identity checks and police information.
- Delaying repairs, which turns small problems into big ones and good tenants into former tenants.
- Keeping deposits without clear records, leading to disputes at move-out.
- Harsh or public pressure on late payers instead of a clear, polite process.
Move-Out, Deposit Return and Monthly Routine
Move-out and deposit return
When a tenant gives notice, agree the move-out date, inspect the flat together, take final meter readings, settle any dues and return the security deposit promptly with a written statement of deductions. Normal wear and tear, such as fading paint after several years, should not be charged to the tenant. A fair, fast deposit return is the best advertisement for your building.
A landlord's monthly checklist
- Generate rent and service charge bills on the same day each month.
- Record every payment and issue receipts.
- Follow up dues politely after the due date.
- Pay staff salaries, utility bills for common areas and holding tax instalments on time.
- Review the complaint log and repairs.
- Check vacancies and upcoming move-outs; put up to-let notices early.
- Update your income and expense records.
Final Thoughts
Renting out a house in Dhaka is a real business, even if it is just one flat. The landlords who do well are not the ones who charge the highest rent; they are the ones with clear agreements, fair and transparent charges, quick repairs, polite but firm collection and good records. Build those habits and your flats will stay occupied by tenants who pay on time and stay for years.
When you have several flats or buildings, tools help. Bariwala ERP is designed for Bangladeshi landlords: set up buildings and units, keep tenant profiles with NID details, create agreements, generate monthly invoices in bulk, record payments and receipts, track advances and dues, send SMS reminders, bill sub-meter electricity, and list vacant flats as leads. It is one way to put this guide's checklist into daily practice.
সাধারণ প্রশ্ন ও উত্তর
How much advance rent do landlords take in Dhaka?
Practices vary; many residential landlords take one or two months' advance or a refundable security deposit, while commercial leases often involve more. The Premises Rent Control Act 1991 has provisions on advances, so confirm current limits with a lawyer.
Do I need a written rental agreement in Dhaka?
It is strongly recommended. A written agreement on stamp paper with rent, deposit, utilities, notice period and house rules prevents most disputes; longer leases may need registration, so take legal advice.
Do landlords in Dhaka need to give tenant information to the police?
Dhaka Metropolitan Police has asked landlords to submit tenant information, commonly through the DMP tenant information form. Keep a copy and update it whenever tenants change.
Who pays the electricity and gas bills in a rented flat in Dhaka?
Usually the tenant pays their own DESCO or DPDC meter and the gas bill, while water and common electricity are often included in service charge. The agreement should state this clearly.
How often can I increase rent in Dhaka?
Many landlords review rent once a year at renewal. Give written notice well in advance, keep increases reasonable and check the provisions of the Premises Rent Control Act 1991.
Is rental income taxable in Bangladesh?
Yes, rental income is taxable under the Income Tax Act, 2023, and you may need to file a return. Consult a tax adviser for current rates and allowable deductions.
What is the best way to collect rent in Dhaka?
Set one due date, accept bank transfers and mobile wallets like bKash or Nagad, give receipts for every payment and keep a ledger per tenant. Send polite reminders soon after the due date.