One Day, One Minute, One Rule – 244
Under the long-term leasing policy, what are the rules governing the revision of rent for buildings hired by the Department of Posts?
According to the comprehensive guidelines, the revision of rent for hired office accommodation is governed by the following rules:
• Rent revision is allowed only once every five years, except for premises hired as Parcel Hubs, where revision can occur once every three years.
• The department will only undertake a revision upon receiving a written request from the landlord, which must then be processed by the Circle within 6 months.
• The increase is generally capped at 8% per annum. In areas under the Rent Control Act, the increase will be the lesser of the amount permitted by the Act or 8% per annum.
• Revision is only granted if the landlord has completed necessary repairs and maintenance to the department's satisfaction and executes a fresh lease agreement.
• The revised rent becomes effective from the date the request was received or the date the revision became due, whichever is later.
• For most buildings, the revision is examined by a departmental Fair Rent Assessment Committee (FRAC), which considers both a "core" rent based on reproduction cost and the current market rate in the locality.
(DG (P) No. BDG-20/3/2021-Building-DOP dated 18th February, 2022)
Post a Comment