To-Lets are too many, tenants are not

As the pandemic deals an uneven blow to all sectors alike, landlords are not any less exposed to the crisis -- facing rent shortfalls and renegotiation, but are often becoming unsuccessful in peopling their vacant flats with tenants.

The plunge in economic situation caused by job cuts and dwindling income forced many to migrate to their ancestral homes, especially in the rural regions.

“I decreased Tk 1000 of the rent amount as some of my tenants opted to go. I had no options but to cut the rent as I knew that it would be hard to find new tenants amid the ongoing pandemic,” said one Shajahan, a house owner at Mirpur-1 in the capital.

“My two apartments remain empty for the last two months. A very few people are contacting me for renting them out.”

Atikur Rahman, another landlord at Shewrapara in the locality, narrated the same story.

“One of my flats has been vacant for the last five months while another for the last two months. I was bound to reduce the rent to hold my tenants,” he stated.

To-Let signs are available in the capital’s Mirpur, Kazipara, Shewrapara, Mohammadpur, Shyamoli, Dhanmondi, Mohakhali, Uttara, Rampura, Pallabi, Tejgaon and others areas.

House owners say a large number of city dwellers do not have income and jobs while many are struggling to pay their house rents regularly.

The landlords express deep concern about their vacant flats as they are seized by financial uncertainty amid the pandemic.

Several surveys show that many of those that could save their jobs have already sent their families home and later moved to a comparatively small flat sharing with others and in some cases to bachelor’s mess.

Ariful Islam, a mess owner at Dhanmondi, said as educational institutions are shut, many students also left Dhaka.

“Currently, we are not getting any positive response regarding mess rent,” he added.

Fazlul Haque, a house owner in the city’s Mohammadpur area, said now most people prefer houses at an affordable price. Both landlords and tenants are passing hard times.

“People’s income took a nosedive while many lost their job. That is why they lost their capacity to pay rent,” observed Fazlul.

“I cut the rent as many tenants informed me that they are getting half their salary. If I did not do it, they would leave by now,” according to Tanjib Rashid, a house owner at Uttara.

Another house owner Sajib Sarker at Rampura told The Business Post there are seven tenants in his seven-storey building who are struggling to pay rent regularly.

“I brought down the rent last year but still I do not get it regularly,” claimed a disappointing Sajib.

Talking to this correspondent, Md Helal Uddin, president of Bangladesh House and Flat Owners Association, said after the pandemic hit the country, many house owners decreased rental charges, yet they find their flats empty.

“If the situation continues for a long time, house owners will be unable to compromise with their rent,” he gave a hint.

“Currently most of the middle- and lower-income families are moving to cheaper accommodation. That is why the demand for house rent is going down,” narrated Helal.

Md Sajjad Hossain, ward councilor in Mirpur’s Pallabi, explained that many people have already left Dhaka as they are unable to pay house rent during this ongoing pandemic.

“Most tenants prefer to go to their ancestral homes. Even many left their dwelling at night as they were afraid of the house owners who, they think, would press for the rent,” said the councilor.

CPD Research Director Khondaker Golam Moazzem said job opportunities went down due to intermittent shutdown while many middle- and lower-income people left Dhaka as they struggled to cope with their family need.

“The government should identify the categories of people leaving Dhaka. Occupation-based data and public-private partnership are essential for the government to address the issues by creating job opportunities for those that have already left the capital,” suggested the researcher.

“Though the government is providing support to the poor, a large number of middle-income people are not getting any penny.”

According to a recent joint survey by BRAC, UN Women and New York University, at least one member of 34 per cent of households lost jobs or earning opportunities in 2020 in Bangladesh.

Apart from that, 77.23 per cent households surveyed said their monthly average income plummeted to a large extent.

According to a recent study by the CPD, 61.57 per cent people lost jobs in March and April last year due to the adverse economic impact of the pandemic-induced lockdown.

Only 15 per cent could avail a job in the following months while 85 per cent remained unemployed for a longer period, finds the study.