New rent control bill tabled in National Assembly
According to the new bill, a landlord “shall not rent out a premise to a tenant unless the tenancy agreement is taken in writing before.”
The Islamabad Rent Restriction (Amendment) Act 2010 aims to address the ongoing dispute between landowners and tenants, particularly traders who have been agitating for several years.
The bill further stipulates that “all payments in connection with tenancy between landlord and tenant shall be made through crossed cheques or with proper receipt or acknowledgment.”
Senator Nayyar Hussain Bukhari told The Express Tribune that after discussion for about one year with all stakeholders, including chambers of commerce and traders’ action committee and consumers, the Rent Restriction Ordinance (Amendment) Bill 2010 was drafted.
If the bill is passed, it would make it mandatory for every agreement between landlord and tenant to be presented before a controller for record.
The rent of residential as well as non-residential buildings will automatically increase annually by ten per cent. However, parties can decide to increase or not to increase the rent by agreement in writing.
For resolving disputes between landlord and tenant, there would be a mediation council headed by President Islamabad Chamber of Commerce or his nominee, while members of the council would include a representative of the tenant and landlord.
In case no settlement is reached by the council, the controller would proceed with the case.
If the council reaches a settlement, the controller would pass an order with the consent of all parties, which would be final.
The capital city had witnessed a significant increase in clashes between tenants and landlords due to the controversial Islamabad Rent Control Ordinance.
Published in The Express Tribune, November 4th, 2010.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ