HOUSING AND COMMUNITY

PLANNING

RENTAL HOUSING

02172005
02172018
Outline
1 Introduction
2 Types
3 Factors
4 Regulation
5 Case Study
6 Inference
7 Reference
 INTRODUCTION

• Rental housing refers to a property occupied by

someone other than the owner, for which the tenant
pays a periodic mutually agreed rent to the owner

• Today, approximately 1.2 billion people live in rental

houses(UN-HABITAT,2011).

Figure 1. Housing in Thimphu

 Types of Rental Housing

 Public Rental Housing

This refers to social rental housing owned by the government,

local authority or its entities.

Aimed as a regulated public service, providing tenants with a

relatively high level of security charging them rent on a non-
profit level basis

Providing rental accommodation for some section of the society

at one time or another. Governments have housed some of their
own employees, most often its armed forces.

Figure 2. Multifamily housing for middle income

 Types of Rental Housing
Private Rental Housing

Residences owned by people or corporations and rented to

households.

Since rents are the only source of income so landlords build

housing for profit
Figure 3. Private Housing in Thimphu

The vast bulk of rental housing across the world has been
provided by the private sector, and increasingly by small
investors.

Figure 4. White House apartment in Thimphu

 Factors Affecting Rental Prices

I. Location

This is the most important factor affecting rental rates for

a housing property

 Location of a property will immediately establish a

baseline rental rate, overall demand and your target
market

Figure 5. Thimphu city plan view

 Factors Affecting Rental Prices

Number of Bedrooms

Proportional with the number of bedrooms in each rental unit

Within each market there is a range of typical rent amounts
you can expect for each unit size

Figure 6. 3 BHK apartment

Appliances and Amenities
Each rental market and submarket will have baseline tenant
expectations for what is generally included with rent or what
the tenant preferences are for the market
Two factors which tenants frequently ask about are
Dishwashers and access to laundry facilities
So the more amenities your property has the more you can
expect in rent.

Figure 7. Furnished apartment

 Factors Affecting Rental Prices

• Square footage and Parking

The rent given for the larger apartments will more

compared to small square footage apartments.

For any building, number of parking is same as

number of apartments. Addition parking results in
additional charges.

Figure 7. Basement Parking

 Tenancy Act Of Bhutan

• A tenancy shall be created by an agreement in writing signed by the parties and two independent
witnesses, legal stamp affixed to it

• The monthly rent for the rental unit/leased land shall be determined by an agreement between the parties

• In the event the tenant fails to pay the rent on time, he/she shall pay the amount with interest at the rate of
24% per annum on the amount due.

• The owner shall not increase the rent before two years from the day on which a tenant occupies the house
increment shall not exceed 10% of the monthly rent

• Where the owner wishes to discontinue the tenant at the end of the tenancy, he shall serve the tenant a
written notice of two months in advance
 Case Study: Rajkot
Rajkot is the fourth largest city in the state of Gujarat with a population
of a little more than 1.2 million as per Census.
The work available attracts migrants for work resulting in huge demand
for rental housing at their income level

Types Of Housing In RAJKOT

Single-room Tenements:
• This type of housing is the most common across all settlements.

• Single rooms are built in a row to be given out either to single male migrants
(who prefer to share with other single-male migrants) or to migrant families.

Apartment House Given On Rent:

• Many households whose affordability increase move out of the or informal
settlements towards localities of greater security of housing tenure

Employer Provided Rental Housing:

• This was seen in small number of cases, one case being in Khodiyarnagar
where in the owner of a small metal workshop built single room tenements
above his workshop to house the workers

Figure 8. Rented house spaces in Rajkot

 Case Study: Rajkot

Suppliers
 
Rental housing was found to be supplied by households
who can afford to build more than they require.
Households who have settled at a location for long and
have a steady flow of income
In some cases, households who have migrated out of the
city and purchased own homes give out part of the house
on rent to earn extra incomes. Table 1: Rental and home ownership in different settlements of Rajkot
 Inference

• Migrants are main seekers of rental housing

• Housing units are built to cater to the different class of people in a locality
• Public rental housing are preferred to private due to cost and proximity to work place
• High Demand for rental housing close to the services, places of work and other urban
facilities.
• Responsibilities and rights of owners and tenants are present for quality rental housing
experience.
• Private rental housing boom due to ever increasing urban population and investment
opportunities.
 Reference
 

Kumar, S. (2006). Social relations, rental housing markets and the poor in urban India,
London.
 
 Logan, J. R., Fang, Y., & Zhang, Z. (2010). The winners in China's urban housing reform.
Housing Studies, 25, 101e117.
 
 Lux, M., & Sunega, P. (2012). Labour mobility and housing. Urban Studies, 49,
489e504.

Thapa, K. (n.d.). Rental Housing: Myths and Reality. Retrieved from https://www.hdm.lth.se/

 
Satterthwaite, D. (2009). Getting land for housing; what strategies work for low-income
groups? Environment and Urbanization , 21;299.
 
Dev, S. (2006). Rent Control Laws in India: A Critical Analysis. New Delhi: Centre for Civil
Society, Sir Ratan Tata Trust. Retrieved from www.housingbharat.com