Man­dalay to en­force new li­cence sys­tem on land­lords

The Myanmar Times - - Business - TIN YADANAR TUN tinyada­nar­tun@mm­times.com PHYO WAI KYAW phy­owaikyaw@mm­times.com – Ad­di­tional re­port­ing by Zay Yar Linn

WOULD-BE land­lords in Man­dalay city will have to ap­ply for a li­cence start­ing next April as city au­thor­i­ties en­force a long-ig­nored by-law.

Sec­tion 76 of MCDC Law states that op­er­at­ing a board­ing house, guest­house or rent­ing out apart­ments re­quires a busi­ness li­cence. From the start of the com­ing fis­cal year, MCDC of­fi­cials will en­force this to the let­ter.

“This rule has been present [for some time] but we have not been con­sis­tent in ap­ply­ing it,” said U Soe Tint Aung, head of MCDC’s Cleans­ing Depart­ment. “But now the rental mar­ket has im­proved. If land­lords who rent out their houses or apart­ments don’t pay tax, it is un­fair for those who pay taxes on run­ning ho­tels, guest­houses and board­ing houses.”

Lo­cal real es­tate agents agreed the rental mar­ket had picked up this year, es­pe­cially in the in­ner city.

The li­cence fee for land­lords will be set at 5pc of the rental fee, and will be paid yearly, said Daw Win Min Than, a sec­tion head from the Cleans­ing Depart­ment. Those ap­ply­ing for a busi­ness li­cence to rent out a prop­erty will need the orig­i­nal lease agree­ment and a copy made be­tween the owner and ten­ant.

Land­lords in the coun­try’s big­gest city, mean­while, can breathe a sigh of re­lief. Yan­gon City De­vel­op­ment Com­mit­tee has no plans to fol­low its Man­dalay coun­ter­part, YCDC of­fi­cials said.

YCDC deputy di­rec­tor U Tin Oo said the prac­ti­cal dif­fi­cul­ties fac­ing such a move were too great. U Sai Khon Naung, manag­ing di­rec­tor of the Sai Khon Naung real es­tate agency in Yan­gon, said the rental rate in the com­mer­cial cap­i­tal was very high, and such a sys­tem would be dif­fi­cult to in­tro­duce.

“It’s not easy to col­lect rental li­cence fees from house own­ers be­cause so much prop­erty is be­ing rented. It would be dif­fi­cult to en­force, and I’ve never heard of such a sys­tem in any other coun­try,” he said.

Photo: Phyo Wai Kyaw

A man sur­veys down­town Man­dalay.

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