Rental Agreement in Bangladesh: Clauses Every Landlord Should Include

Ask any experienced landlord in Dhaka what they wish they had done differently, and the answer is often the same: "I should have written it down properly." A rental agreement in Bangladesh (bhara chukti) is more than a formality for the police form or the tenant's office. It is the rulebook for the whole tenancy. When rent goes up, when a pipe bursts, when the tenant wants to leave early or when the deposit is due back, both sides turn to the agreement. If it is vague, silent or missing, the argument begins.

This guide goes through the clauses every Bangladeshi landlord should include, explains why each one matters, gives sample wording, and highlights the traps that most often lead to disputes. It is written for residential landlords of flats and houses, with notes for shops and offices. If you want a ready-made document to fill in, use our house rental agreement template in English; this article explains the thinking behind it.

Disclaimer: This is general information, not legal advice. The Premises Rent Control Act, 1991, the Contract Act, 1872, the Stamp Act, 1899, the Registration Act, 1908 and tax laws all affect rental agreements, and rules and rates change. For large amounts, long leases or unusual terms, consult a lawyer.

The Legal Framework in Brief

A rental agreement is a contract, so general contract principles apply: both parties must agree freely, terms must be lawful, and both must be competent to contract. On top of that:

• The Premises Rent Control Act, 1991 deals with standard rent, rent increases, advance payments, receipts, and the landlord's and tenant's rights on eviction and repairs, within the areas where it applies. A clause that conflicts with it may not be enforceable.
• The Stamp Act, 1899 requires agreements to be executed on stamp paper of the appropriate value.
• The Registration Act, 1908 may require registration of leases above certain terms.
• Tax laws treat rental income as taxable and may require some tenants to deduct tax at source or VAT on certain commercial rents.

For a plain-English overview of the rent control law, read our Premises Rent Control Act 1991 explainer.

The Core Clauses: Parties, Premises, Term and Rent

Clause 1: Parties and identification

Name every party exactly as on their NID or passport, with father's or spouse's name and addresses. For joint owners, either all sign or the signing owner holds written authority. For companies, the company is the tenant and an authorised signatory signs with a board resolution or authorisation letter. For probashi owners, a power of attorney holder can sign on their behalf.

Why it matters: If the wrong person signs, or a co-owner later objects, the agreement's enforceability can be questioned.

Clause 2: Description of the premises

Describe the flat precisely: holding number, road, area, building name, floor, flat number, approximate size, rooms, and anything included such as a parking space, storeroom, rooftop access or servant's room. Attach an inventory of fittings and furniture.

"Flat No. 5C on the 5th floor of [building], Holding No. [__], Road [__], [Area], Dhaka, approx. [__] sq ft, with 3 bedrooms, 3 bathrooms, 2 balconies, one covered car parking space (No. [__]) and fittings listed in Schedule A."

Clause 3: Term, renewal and holding over

State the start date, end date and whether renewal is automatic or by fresh agreement. Say what happens if the tenant stays on after expiry without renewal (often called holding over): does the tenancy continue month to month on the same terms?

Tip: Many agreements expire after 11 or 12 months and are never renewed, leaving the tenancy running on old terms for years. Put renewal dates in your calendar.

Clause 4: Rent, due date and payment method

The rent clause must be precise:

• Monthly amount in figures and words
• Due date (for example, on or before the 5th of each month)
• Payment channels: bank account, bKash or Nagad number, or cash against receipt
• Commitment to issue receipts for every payment
• Who bears mobile or bank charges

A matching receipt habit makes this clause work: every payment, including partial ones, should get a numbered receipt showing the month and any balance.

Clause 5: Advance Rent and Security Deposit in a Rental Agreement

This is the clause behind most disputes. Be explicit about three things: the amount, whether it is advance rent or a refundable deposit, and how and when it will be returned or adjusted. The rent control law contains provisions on advance payments, so check that your amounts comply.

For example (illustrative): deposit versus advance

Monthly rent is Tk 22,000. The landlord asks for Tk 44,000 at signing.

• If it is advance rent for 2 months, the tenant pays no rent for the agreed months (say, the last 2 months of the tenancy). Total rent over 12 months = 12 × 22,000 = Tk 264,000; the tenant pays 264,000 − 44,000 = Tk 220,000 in monthly instalments over the other 10 months.
• If it is a refundable security deposit, the tenant pays full rent every month (12 × 22,000 = Tk 264,000) and gets Tk 44,000 back at the end, minus documented deductions. If unpaid bills are Tk 1,500 and repairs Tk 2,500, refund = 44,000 − 1,500 − 2,500 = Tk 40,000.

Same Tk 44,000, two very different outcomes. The agreement must say which one applies. More detail is in our guide to advance rent and security deposits.

Charges, Use and Occupants

Clause 6: Service charge and utilities

Separate rent from other charges:

Clause 7: Use, occupants and subletting

State that the flat is for residential use by the tenant and listed occupants. Require written consent for subletting, paying guests or short-term rental. List the occupants in a schedule, and require the tenant to inform the landlord of changes, which also helps with police tenant information forms. For commercial property, state the permitted trade.

Repairs, Alterations and Rent Increases

Clause 8: Repairs and maintenance

Draw a clear line of responsibility:

• Tenant: day-to-day care, cleaning, minor replacements (bulbs, washers, fuses), damage caused by the tenant, family, staff or visitors.
• Landlord: structure, roof and wall leakage and damp, main plumbing and wiring, water tank and pump, major fixtures, repainting at agreed intervals.
• Process: tenant reports defects in writing; landlord responds within a reasonable time; emergencies handled immediately.

Clause 9: Alterations and landlord's access

Prohibit structural changes without written consent. Allow minor changes such as hanging pictures or installing curtain rods, and say whether the tenant must restore the flat on leaving. For access, require reasonable notice (for example 24 hours) except in emergencies, and set reasonable hours.

Clause 10: Rent increase

Specify how and when rent may be revised, with how much notice, and that any increase will comply with applicable law. Avoid open-ended clauses like "landlord may increase rent at any time". For shops and offices, see our guide on commercial rent reviews and escalation clauses. A clear rent increase clause prevents the most emotional conversation in any tenancy.

Default, Notice and Handover

Clause 11: Late payment and default

Set out what happens when rent is late: a reminder, a grace period, any late fee (if you use one, keep it reasonable and lawful), and at what point persistent non-payment becomes grounds for termination through lawful process. Never include clauses allowing the landlord to lock the flat, remove belongings or cut utilities; such self-help remedies can be unlawful.

Clause 12: Notice, termination and handover

• Notice period for both sides (commonly one or two months), in writing.
• Whether the tenant can leave before the term ends and on what conditions.
• Grounds on which the landlord may seek termination, subject to law.
• Handover condition: vacant possession, keys, fittings as per inventory, subject to normal wear and tear.
• Final meter readings and settlement of bills.
• Deposit refund timeline and written deduction statement.

Other Clauses Worth Adding

• House rules: noise, waste, parking, visitors, rooftop use, drying clothes, attached as a schedule.
• Pets: allowed or not, and under what conditions.
• Police tenant information: tenant agrees to provide information needed for official forms.
• Safety: no hazardous materials, gas safety rules, no blocking fire exits.
• Dispute resolution: discussion first, then House Rent Controller or competent court.
• Entire agreement and amendments: changes only in writing, signed by both.
• Communication: addresses, phone numbers and email for notices.

Execution: Stamping, Signing, Witnesses and Registration

1. Print on non-judicial stamp paper of the correct value (check the current requirement).
2. Fill every blank; strike out unused lines.
3. Both parties sign each page and the final page; two witnesses sign with names and addresses.
4. Attach schedules: inventory, occupants, house rules, NID copies.
5. Check whether registration is required for your term.
6. Give each party an original or certified copy.

Our Bangla guide on rent agreement stamp and registration discusses the process further.

Adapting the Agreement for Shops, Offices and Expat Tenants

The clauses above are written with a family flat in mind. Other tenancies need extra attention:

• Shops and offices: add the permitted trade, trade licence, signboard rules, opening hours, fit-out or rent-free period, escalation schedule, salami terms if any, and tax deduction at source or VAT responsibilities. Commercial leases are usually longer, so stamping and registration questions become more important.
• Corporate tenants: the company signs as tenant; the employee is the occupant. Add a clause on early termination if the employee is transferred, and specify who the landlord contacts for payments.
• Expat and foreign tenants: record passport and visa details, include an emergency contact in Bangladesh, and consider a diplomatic or early-exit clause if the tenant's posting ends.
• Furnished flats: the inventory becomes critical. List each item, its condition and, ideally, a photo.
• Shared or bachelor flats: list every occupant and say whether they are jointly responsible for the full rent or each for their own share.

Pre-Signing Checklist

Common Mistakes in Bangladeshi Rental Agreements

• Downloading foreign templates that refer to other countries' laws.
• Leaving the deposit's nature unclear.
• No inventory or meter readings.
• Clauses that are one-sided or unlawful, which may not be enforceable and damage trust.
• No renewal after the first year.
• Only the landlord keeping a copy.
• Verbal side agreements that contradict the written document.

Final Thoughts

A good rental agreement in Bangladesh is clear, fair and specific. It names the parties precisely, describes the flat, fixes the rent and due date, separates deposit from advance, sets out charges and repairs, explains increases, notices and handover, and is properly stamped, signed and copied. Spend an extra hour on it at the start and you will save many hours of argument later.

After signing, Bariwala ERP (বাড়িওয়ালা ERP) can store the agreement with the tenant's profile, track the deposit and advance, and generate invoices and receipts that follow the agreed rent and service charge, so the terms you wrote are the terms you actually run.