Tenancy or lease renewal in Bhutan
Renewing a tenancy or lease agreement in Bhutan typically involves drafting a new contract or an addendum to the existing one, followed by mutual signing between the landlord and tenant. These agreements are private contracts, though they must comply with the general provisions of the Bhutanese Tenancy Act.
It is generally recommended to initiate discussions regarding lease renewal at least 30 to 60 days before the current agreement ends. This allows sufficient time to negotiate terms, prepare documentation, and address potential administrative requirements if the property is managed by a corporate entity or institution.
Start 45 days ahead
Provides a buffer for finalizing terms and ensuring both parties are in agreement before the expiration date.
The process
- 1Review the existing lease agreement to confirm the specific renewal clauses or notice periods stipulated by the original contract.
- 2Engage in discussions with the landlord or property manager to express the intent to renew and verify any proposed changes in rent or terms.
- 3Draft the renewal agreement or a new lease contract incorporating the updated terms, ensuring it aligns with the Bhutan Tenancy Act.
- 4Both parties sign and date the agreement in the presence of witnesses if required by the terms of the contract.
- 5Retain a signed copy of the renewed lease for personal records and potential verification purposes.
What to bring
- Original lease agreement
- Valid identification documents for both landlord and tenant (Bhutanese Citizenship Identity Card or permit)
- Proposed renewal agreement or addendum
- Proof of recent rent payments
Who handles it
Office of the Registrar of Tenancy / Local Dzongkhag Administration (District Administration)
There is no standardized government fee for private tenancy renewals, though parties may choose to incur costs for legal notarization if they seek to formalize the document further. Confirm any administrative or service fees directly with the property owner.
What commonly goes wrong
- Failure to formally document the renewal may leave the tenancy as an 'at-will' arrangement, which offers less security.
- Ensure that any rent increases proposed in the renewal comply with the legal limits or guidelines set forth in the Bhutan Tenancy Act.
- Confirm whether the property owner requires a new security deposit adjustment as part of the renewed contract.
Sources
This guide is based on one official source.
- Tenancy Act of Bhutan, 2015 oag.gov.bt
Other documents in Bhutan
Tenancy or lease renewal in other countries
Often renewed together
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