Tenants and Renters Bound by Law
Some provisions in Muluki Dewani (Samhita)
• If somebody permits to use one’s house for specified time where such person retains right, title, and ownership to the property, it shall be deemed to be the house on rent.
• Renting houses not deemed safe from health and security viewpoints are prohibited.
• The rent term shouldn’t exceed 5 years. However, the time can be expanded several times after the expiry of the original period and mutual agreement between the tenant and renter.
• Written agreement should be made and signed between the tenant and renters with at least two witnesses covering following factors:
o Documents revealing the personal identity of the renter, without photographs
o Purpose for rent, duration, monthly rental payment services and duty terms,
o Conditions that would or wouldn’t break the agreement, the duty of home rental tax,
• A copy of such agreement should be kept by both the renter and tenant
• No need to make an agreement if the monthly rent is up to NPR10,000
• The tenant should inform the renter if the house has any weakness or damages well before signing the agreement
Duties of a Tenant
• Duty to let renter use the house as per the agreement
• Duty to manage water, electricity, wastage, sewage, and sanitation, if not otherwise agreed
• Stop the renter from other renter’s disturbance, insecurity, and violence
• Comply with the terms of contract
Duties of a Renter
• Duty to pay rent in due time
• Duty to pay attention to adequate sanitation, care, conservation and security
• Duty not to disturb or do any act of violence and insecurity to neighbors and housemates
• Cheque or cash as rent to be paid to the tenants within 7 days after the end of previous month, if not otherwise agreed
• Receipt to be provided to the renter on receipt of rent
Duty to pay tax and other fees
• Otherwise than mentioned in a contract, it is the duty of a tenant to pay taxes and other fees of house
• If a tenant is unable to pay taxes and fees, and the renter pays the fees and taxes on behalf of such tenant, the renter can deduct such payment from the rent s/he is supposed to pay
• If a renter rents a house for commercial or business purpose (to carry some industry or departmental store, or do business setting more than one shops), s/he should insure the house for security. If the renter doesn’t do the insurance of such house, s/he has to be responsible in occurrence of disaster, violence, fire, etc. damaging the house. If not otherwise mentioned, the renter himself or herself is responsible for any repair and maintenance of house.
• However, if, under the contract, the tenant is obliged for repair and maintenance of the house, the renter shall send written information to the tenant in due time. If the tenant fails to repair the house as such, the renter can do it on his/her own, and deduct the expense from the amount payable to the tenant. The tenant won’t be liable for any unnatural or unnecessary repair or maintenance made by the renter.
• The renter isn’t allowed to make any physical structural changes to the house without the written permission from the tenant. The tenant can claim damages if the renter goes against it and incurs damage to the tenant. Similarly, the renter isn’t also allowed to use the house for any other purpose other than agreed in the contract, or without prior permission from the tenant.
• A renter can leave the house in special conditions, such as if the tenant do not comply with his/her duties, or if the purpose for which the house was rented doesn’t exist anymore, of with 35 days prior notice. If the renter doesn’t provide the notice and leave the house, the tenant can claim rent for such period.
• A tenant can ask for leave from the house if the renter carries out illegal activities, if he/she himself/herself need more space, or the house is to be repaired for which vacant houses is required, or if the house isn’t good to live at technically or due to health concern, or the term of the contract has lapsed, etc. However, if the tenant ask for vacancy, he/she cannot rent until the property is used personally for at least three months.