Laws concerning tenants that every tenant and owner in Nepal must know.

Landlord and tenant law are both newly introduced in the National Civil Code, 2017. The landlord law deals with issues relating to the tenant and its contractual relationship between the landlord and the tenant, based on the agreement reached between the parties.

In general, as provided for in the contract-related paragraph of the Civil Code, the contract and the agreement shall be applicable to the landlord contract. It is not necessary for the legislature to formulate specific legislation. But property owner disputes are now on the rise in Nepal that further led to the formulation of a separate paragraph dealing with disputes between the landlord and the tenant.

The law provides for the rights and duties governing the relationship and rental property between the landlord and the tenant. Pursuant to Article 383 of the National Civil Code, 2017 the house agreement is stated as follows:

Condition or Pre-requisites for rental property: 

The recently adopted law of Nepal refers to what kind of house may and may not be rented. The provisions shall be as follows: 

Well-built homes 

Landlords are not allowed to rent a house that is not appropriate 

 For Human habitation, that poses a risk to health and security issues.

Conditions must be specified

The quality and condition of a house for non-residential purposes, such as storage, livestock farming, storage and refrigeration, shall be as set out in the agreement on the rental of a house.

Important provisions on house rent in the National Civil Code

A written Agreement

It is important to enter into a written agreement between tenants and owners in the best interest of both parties. The National Civil Code 2017 set a ceiling on the amount of the rent. The National Civil Code states that it is not necessary to maintain an agreement in the case of house rent below twenty thousand.

Period of the rent of the house: 

In general, the contractor is entitled to maintain the contract for longer periods of time. The contract does not require a specific duration of the period. In the case of extended contractual periods the chances of a dispute are high. Thus, the business house may be rented out for a period of five years. In the case of a landlord contract, the time limit for the contract shall be five years.

Terms and conditions 

Terms and conditions shall be offered and accepted by the contracting parties in general. There is no restriction here. However, it must specify the following components in the house rent contract.

  • Place and plot number of the land where the house is located; 
  • Objective of rental, 
  • Date of the beginning of the rent, 
  • The term of validity of the rent, 
  • Monthly rent; 
  • Time and payment mode for rent, 
  • Duty to pay electricity, water, telephone, etc. tariffs used in the home, 
  • Matter of the payment of household lease tax,

Photo of the tenant 

We do not attach photos to the contractual agreement in the general contract. However, the photograph of the tenant is placed to the house agreement.

Duties of the owner of the property 

The duties of the owner of the house in the service agreement of lease of the house are as follows: 

  • To own a house in compliance with the agreement, 
  • Supply of power and water and sanitation in a rented house. 
  • Prevent the tenant from insecurity and unrest in the property area.
  • To comply with the other issues set out in the Agreement 

Tenant duties

  • The duties of the tenant shall be the following: 
  • To pay the rent during the set period, 
  • To maintain sanitation, to take care of, protect and safeguard the rented house properly and reasonably. 
  • Avoid unnecessary harassment and insecurity of other dwellers in the home or neighbors;
  • To comply with the other concerns set out in the Agreement. 
  • The tenant shall not demolish, remove or alter any structure of, or add any structure to, the rented house or otherwise alter it without the consent of the owner of the house in writing.

Mode and procedure for payment of rent: 

The tenant shall pay the rent to the owner of the house in accordance with the manner and procedure laid down in the agreement. The payment of the rent shall be agreed upon between parties in the manner specified below: 

  • The tenant shall pay the rent to the owner of the house within seven days from the end of each month. 
  • The rent may be paid in cash or cheques.

How is the landlord going to evict the tenant? 

You may face bad tenants in your house renting business. With your tenant, you have a “good” relationship. In a good relationship, there is sometimes a lack of willingness to pay rent. Sometimes due to unprecedented situations such as a nationwide lockdown caused by a pandemic (Covid-19) and other catastrophic events, they will probably not be able to pay rent.

You simply can’t let them stay free of charge in such circumstances, you’ll have to hire a lawyer for the formal eviction process. All information about the provisions contained in the Nepali National Civil Code must be obtained. Below is the legal process specified:

Under Nepal’s law, a landlord or house owner must have a good legal reason to evict a tenant. This includes: if the tenant fails to fulfill his or her duty of care and to protect the house from harm.

  • In the event that the tenant fails to pay rent in time, 
  • If the tenant causes damage to the house or disturbs other dwellers, or if the landlord requires the house to be rented for his own use. There must be valid reason to evict the tenant.

In any of the following circumstances, the house owner may evict the tenant from the house: 

  • If the tenant commits any offense related to the activity prohibited by law in the rented house; 
  • If the owner of the house needs a house for himself or herself, 
  • Where it is necessary to repair and maintain the house by removing the inhabitants from the house;
  • If, from a technical and health perspective, the rented house does not appear to be appropriate for human habitation, 
  • If the rental period of the house expires,

Provide written notice to the tenant 

At the outset, the owner of the house is required to give the tenant a notice of termination stating the reason for the eviction. The notice should be in writing and the time limit for the eviction should be at least thirty-five days. The time frame and number of days that the landlord must wait before submitting an application to Ward and the Municipal Office shall be specified in the notice.

File an application with the Ward and Municipal Office. 

After the owner of the house has given a notice and the due date has passed, the landlord can submit an application to the municipality office. Section 47 of the Local Government Operations Act 2017 stipulates the jurisdiction of the Ward and the Municipal Office. The landlord must prepare an application to terminate the lease and start a process to evict the tenant and file an application fee with the board of directors. The Municipality will set a date for the hearing and prepare a notice of hearing. 

Final hearings

The final step is to hear a case. Both parties have to attend the hearing. The Judicial council of the Municipality shall decide the case on the basis of the application and the evidence presented. The municipality shall issue an eviction order. The date of the eviction of the place shall be stated in the order. Pursuant to the order of the Municipality, the evacuation process is carried out.


  • Anupam Adhikari

    Hi Alpana, we have given our land on rent for 7 years and since it gets expire, tenant refuse to evacuate the land saying COVID-19 affects his investment. We understand so we forge him some monthly rent and now it’s been expire this year on Baisakh. Since the Ward Officer is so called close friend of him and he ignores our application.
    Is there any other way for us to ask him to evacuate the premises. We are going to build residential house for ourselves.
    Thank you

    • Alpana Bhandari

      Please visit us or you may call us at +9779849517735.

      Thank You!

    • Alpana Bhandari

      Please visit us or you may call us at +977-9849517735.

      Thank You!

  • Medan Pradhan

    You did not mention regarding the rent increment. How often the owner can increase the rent, I mean period of time and of what percentage?

  • Himal KC

    Hello Ms. Advocate,

    Thank you for your informative article. I have rented a residential flat for Rs 12,000 only per month without written agreement. It seems that there is no need of written agreement for rental below Rs 20,000. The tenants have not paid the rent since last 2 months without any genuine request or regret for the delays. It was always hard to collect rent from them. Can I initiate a legal action if it becomes impossible to collect rents from them?

    Thanks and regards,

    • Alpana Bhandari

      Dear Mr. Himal:

      Thank for your query. We encourage you to visit us at our office for detailed information and consultation.


  • Arzooh Sharma

    Hello mam,
    UTL company had kept its BTS tower 10 years ago. It didn’t pay rent to us since 7 years. Contract is finished. Its concerned people had ran away without informing us. It has become headache to us. Its condition is very bad, and may fell down any time. Any suggestions? Only we need to follow the rules or they also should?

  • Viva Stha

    Hello Alpana,

    Our tenant has not paid rent since more than 2 years. They stopped paying rent since covid. We have asked them to move out but they How do I evict them from my property? Please Help!!

    • Alpana Bhandari

      Thank you. Do you have the house agreement?

      Please visit the office or you may call at+977-9849517735

    • Anonymous

      Hello Alpana,
      I am a negotiation specialist at a law firm here in the USA. My parents have a rental home in Kathmandu. One of the tenants has rental dues of over two lakh NPR. After giving many ultimatum and failing to get the tenant to comply, my father locked the pharmacy (tenants assets) . The tenant in turn broke the lock and threatened my father to take a legal action. I could have give a citation to the tenant or taken appropriate legal step if it was under the jurisdiction of my law firm.
      However, I don’t know the process to handle it in Nepal.
      Can you assist?
      Thanks in advance

      • Alpana Bhandari

        Dear Ms.Viva:

        Thank you for your concerns. Could you send your visitor to visit me at my office or connect with me at +977-9849517735

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