Bengaluru: Rents Hike from April 1, Shock Awaiting Tenants

Bengaluru is already known for its high cost of living, and now rental charges may rise even further due to the Karnataka government's approval of a new user fee for waste disposal, starting April 1. Property owners will face higher tax bills as the new fee will be added to their property tax. This fee, which is based on property size, aims to cover the costs of waste management services, including door-to-door waste collection and disposal.

The user fee, approved by the Urban Development Department under Deputy Chief Minister DK Shivakumar, is expected to generate around Rs 600 crore annually, though this figure could be higher. It will vary depending on the size of the property, with six fee slabs ranging from Rs 10 to Rs 400 per month. Properties up to 600 sq ft will pay the lowest fee, while those over 4,000 sq ft will pay the highest. This increase in tax could lead to a higher financial burden for many Bengaluru residents.

Tenants may also feel the impact of the new user fee. With landlords likely to raise rent prices to cover the added costs, tenants in both residential and commercial properties may see their rental expenses rise. This could make living in Bengaluru even more expensive for many, adding to the already high cost of living in the city.

In addition to the user fee, bulk waste generators, such as large apartment complexes and commercial establishments, will be charged Rs 12 per kg of waste if they do not use a government-approved agency for waste processing. This additional cost may affect the operational expenses of businesses and could further drive up rental prices in commercial spaces.

The existing Solid Waste Management (SWM) Cess, which is already part of property tax and primarily used for street cleaning, will remain unchanged. The new user fee is meant to supplement this fund and improve waste management services in Bengaluru.

While the government defends the fee as necessary to fund waste disposal services, critics argue that it could increase the financial burden on both residents and tenants. Despite these concerns, the government insists that the fee is essential for better waste management and a cleaner Bengaluru.