LMC to increase rent by 100-200%

LUCKNOW: From April 1, 2017, properties of Lucknow Municipal Corporation rented out for over 40 years would see 100-200% increase in rent. The owners have been paying a fixed nominal rent in the range of Rs 100-400 per month to LMC for the last many years despite being in prize locations like Chowk, Aminabad, Lalbagh and Mahanagar.

People generally end up paying much higher rent for private properties because of higher DM circle rate but LMC has been getting very low fixed rent per month. Whenever LMC tried to float any proposal, corporators would reject it claiming it would put excess financial burden on tenants.

After years of consultation with corporators, locals and LMC house members comprising mayor and other political leaders, LMC authorities finally came to a consensus at the meeting on Sunday that from April the rent would be based on monthly rental rate (MRR) of the house‘s location. The rent would be determined by multiplying MRR by the area of house.

Like DM circle rate, LMC also has its own rental rate for each locality which is revised every two years. From April 1, the MRR of 2014 will be applicable for determining rent of LMC’s properties. Additional municipal commissioner P K Srivastava said, “The revised rent has been approved by the rent committee formed by LMC two years ago. Though it’s a huge hike, it was important considering tenants have been occupying the properties for so many years at fixed amount as low as Rs 100-200-400. It was a huge loss of revenue and we were not able to take care of the properties‘ maintenance.”

LMC has over 2,000 rented properties across the city of which nearly 70% are commercial spaces and shops. LMC decides on MRR after verifying many factors like locality, type of road running in front of house, type of construction, etc. People renting commercial properties of LMC will have to shell out higher rent from April 2017 as the MRR of commercial properties is higher than of residential. House tax is determined by multiplying MRR X Area of House X 12 and 15% of this determined value is house tax.

Credits The Times of India

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