Finding an affordable house or a flat for rental has become extremely diffi cult in the capital. Kathmandu city has reached saturation point with haphazard growth, both hori zontal and vertical. The popula tion density (2,749 people per square kilometre as of 2001) has been increasing at an alarming rate with the valley being the centre of attraction for many. There are numer ous reasons for this -job opportunities, better lifestyle, education, better infrastructure, to name a few. Due to lack of decentral isation, Kathmandu valley is witnessing increased local mi gration. "Kathmandu city has limited land and there are no open spaces left because of un planned growth," informs Deven dra Dongol, department head of Urban Development Department at Kathmandu Metropolitan City. The market trend reveals, the supply is stagnant and unable to meet rising de mands. "The demand is so high that even the houses which are still under construction are houses which are still under construction are booked for rentals," opines Vhishnu Pandey, propri etor of Vishal Real Estate. It is estimated that there are around four million people currently residing in Kathman du.

The prices on rentals run parallels with the escalating demands. House and flat rents have increased beyond logic. "We find landlords charging astronomical rents and the tenants paying without complaints," adds Pandey. A prime cause for this situation is the lack of government policy in terms of renting out one's house or flat. "The government has to formulate policies to make renting houses and flats easier for the general mass," opines Pandey. Kathmandu has rental facilities for people from all social strata. "A decade ago, one could rent a simple decent house with four rooms located in the inner lanes of the city like Lazimpat, Maharajgunj, Baluwatar, Naxal and Anamnagar for Rs 3,000. Five years back, the rent was Rs 5,000 and currently the same houses charge Rs 15,000," informs Pandey.

Rentals on houses and flats depend on various factors -location, land area, infrastructure, facilities, etcetera. "A simple flat today costs between Rs 7,000 to Rs 8,000," informs L P Chhetri, proprietor of Basundhara Real Estate. These flats are located away from the hub. These four-roomed flats usually do not have attached bathrooms and parking spaces. A better located flat with four rooms and easy road access would range from Rs 15,000 to Rs 20,000. These flats have attached bathrooms and parking space. Some of these flats also have helper's quarters.

"A bungalow's rent would start from Rs 30,000 to Rs 40,000 and can go up to Rs 1,50,000 to Rs 2,00,000, depending on the location and the area," informs Chhetri. Bungalows are usually rented by families with high income and foreigners.

On the other hand, economic rooms are also available for rent. These are usually preferred by students who come to the capital for their studies. These rooms have minimum facilities. "These rooms have no attached bathrooms and are rented out for Rs 1,500 to Rs 2,500," informs Chhetri.

Renting is a safe option for people when it is difficult to obtain a home loan and land prices are shooting up. However, renting has its drawbacks too. There are always problems like lack of water, electricity and infrastructure. There are also no housing policies and usually a house or a flat is rented without signing an agreement or a contract between the two parties involved.
One reason is because landlords try to evade the 10 per cent taxes that the government charges on rents.

With a formulation of government policy on renting, the price of rents can be checked and regulated keeping both landlords and tenants happy. Proper contracts and agreements for renting are also beneficial for both parties. "The government should take initiation before rents escalate and the general mass would be unable to afford shelter," said Pandey.

source: The Himalayan Times (2010),"Renting in Kathmandu Valley",The Himalayan Times: Property Plus, 11 September 2010