New Occupant Protection Bill challenges house rental market

One argument is that tenant protection cannot exist without corresponding tenant responsibility

Renting a house or an apartment in Colombo is now becoming next to impossible due to exorbitant rental fees. Around 10-15 years ago, the real estate value for annexes and rooms in areas such as Nugegoda, Maharagama, Kohuwala and surrounding areas remained below Rs. 50,000. Today, a room that is described as most suitable for working couples or students would cost around Rs. 30,000 indicating the shift in prices. But in most instances,  such accommodation doesn’t even have basic facilities except for a bed and a fan and a toilet. 

Over the years, rented spaces such as houses, apartments and annexes in areas such as Kolonnawa, Pannipitiya, Malabe and Athurugiriya,  too have skyrocketed. One of the most challenging tasks for anybody who wishes to work in Colombo is to find safe accommodation. Today it is becoming increasingly difficult to find an affordable place on rent which is both safe, is equipped with basic amenities,  and is in close proximity to Colombo. 

Real estate advertisements also include various demands to which tenants have to adhere to. Some house owners do not want families but couples. Rented rooms and annexes in close proximity to universities are available on sharing basis and they operate like hostels. But when a student, couple or family goes to any rented house, annex or apartment,  they have to provide minimum three months’ key money as a security deposit. 

Living on rent is a burden in the backdrop of rising cost of living. One has to divide the salary between paying the rent, utility bills. If there is no kitchen in the rented space, people have to purchase food ordered from outside. Therefore,  people are compelled to do two or three jobs to survive. A majority of landlords in fact show no mercy on tenants who fail to pay the rent on time and those who evade paying utility bills. 

Therefore, landlords provide annexes, houses and apartments at their own risk. It is in this backdrop that concerns have also been raised about the new Protection of Occupants Bill. The Bill aims to repeal the 1972 Rent Act which is described as a rigid statutory tenancy regime. According to the government, the proposed legislation is aimed at strengthening legal protections for lawful occupants and addressing arbitrary evictions.

Under the proposed law, the provisions will apply to any person who is in lawful occupation of premises and has remained in undisturbed and uninterrupted occupation for a period exceeding three months. Once the law comes into effect, it will be unlawful for a landlord to eject an occupant in contravention of the terms of a lease or tenancy agreement, except by an order issued by a competent court. Hence, one of the concerns raised is with regards to delays in judicial processes. Critics warn that the requirement to obtain a court order would prolong disputes for months or years, particularly in cases involving non-payment of rent or breach of lease of conditions.

The Bill also seeks to criminalise indirect eviction practices. Landlords will be prohibited from discontinuing essential amenities or facilities, or deliberately damaging premises, as a means of forcing an occupant to vacate. 

But former ministers and lawyers have raised practical concerns regarding this Bill. These are particularly in cases where tenants default on rent, utility payments, or condominium management charges. Under the new law, landlords could be compelled to restore essential services and continue maintaining occupants while court proceedings are ongoing, even where tenants are in clear contractual breach. One argument is that tenant protection cannot exist without corresponding tenant responsibility, warning that uninterrupted statutory protection despite non-payment would create a moral hazard and encourage abuse of legal safeguards.

Landlords rent out houses with the primary objective of earning money. From a tenant’s point of view, their primary objective is to find temporary accommodation at whatever the cost. But with the new bill, people fear that rental and property prices would increase while some landlords now contemplate on drafting stricter eviction rules. 

In this backdrop, lawyers uphold that people, including tenants and landlords,  should be equally treated before the law and suggest that the government should in fact revisit the new Bill prior to implementation.

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