KATHMANDU, Nov 19: Kathmandu Metropolitan City (KMC) has started making Work Procedures related to renting apartment. With the aim of tightening the rules related to renting a house, the metropolis is going to make a procedure that requires a mandatory agreement between the landlord and the tenant.
The revenue consultation committee of the metropolis has already decided to send the draft of the work procedure to the legislative committee. Deputy Mayor of KMC Sunita Dangol, who is also the coordinator of the committee, said that the consultation committee meeting held on Wednesday decided to discuss the procedures twice and send it to the legislative committee.
Basant Acharya, Director of Metropolis and Member Secretary of the Legislation Committee, presented the procedure in the meeting. According to Acharya, the metropolis has been collecting tax based on the Economic Act at present. Due to the absence of the law of the metropolis regarding the existing system, it has not been able to work on solving other problems except that the metropolis will take 10 percent of the income specified by the Economic Act.
NEA tells landlords not to charge tenants arbitrarily
If this law comes into operation, both landlords and tenants will benefit and it will also be easier for the metropolis to regulate the renting process. So far, the work procedure related to rent is being done by the metropolis only by following the economic law. The draft procedure that is being made at present is all new.
What’s in the draft?
In the draft of the procedure prepared by the committee, a mandatory agreement should be made when renting or leasing a structure, location or land for the purpose of living and doing business within the metropolitan city. One copy of the agreement made in this way should be kept by the giver and one copy should be submitted to the ward office.
Details such as the name, address, citizenship number, national identity card number, area of the leased place or structure and lot number should be mentioned in the agreement. Similarly, how much and how the rent will be increased, who will pay the electricity and water charges, who will pay the reinstatement tax, and who will do the repairs should also be mentioned. If the subject of deferred tax is not mentioned in the contract, the obligation to pay the tax will be the responsibility of the party giving the deferred tax.
The landlord must make arrangements such as allowing uninterrupted use of the place he has given, mandatorily providing water, electricity and toilets, security, order and self-respecting behavior. In the same way, the borrower will have to fulfill obligations such as paying the amount due on time, protecting the structure as his own, and not doing things that cause disturbance and harassment to others.
Before the implementation of the procedure, the person who takes the restitution will have to enter into an agreement within 90 days after the implementation of the procedure. If there is a mathematical mistake in the contract, it can be corrected within 15 days.
According to the procedure, non-profit associations or those living on government and private land will also be permanent taxpayers. But the ownership of such places will not be acquired on the basis of paying the reinstated tax. According to the financial law of the metropolis, there will be an incentive for those who pay the amount on time and a fine for those who do not pay.
