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![Page 1: Www.icddrb.org Understanding the rental market to assess value of improved water quality in low-income urban Dhaka Farhana Sultana Research Investigator.](https://reader036.fdocuments.us/reader036/viewer/2022062315/5697bfa71a28abf838c988c0/html5/thumbnails/1.jpg)
www.icddrb.org
Understanding the rental market to assess value of improved water quality
in low-income urban Dhaka
Farhana SultanaResearch Investigator
WASH Research Group
Centre for Communicable Diseases
icddr,b
Water and Health Conference
UNC, Chapel Hill, North Carolina
October 28, 2015
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Background
• Dhaka is one of the fastest growing cities in the world with 15 million population
• 40% share of Dhaka residents live in slums, and this share is also growing rapidly
• Most households in Dhaka
slums live in rented housing
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Photo credit: Wafiq Jawad, The World Bank
Reference: Rahman et al. 2014
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Water supply for urban poor
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Dug well (non-drinking source) Piped water collection
Water reservoir system
Shared water points Tap water system
Photo credit: Nuhu Amin, Nazrin Akter
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“Improved” water supply for urban poor
• Most of the slum residents use shared water points for their daily water needs
• Though considered “improved,” these water points often do not provide safe water
4Reference: Hanchett et al. 2003, Pickering et al. 2015, Amin et al. (accepted for publication), 2015
– Dhaka municipality water supply authority chlorinate water
– Though intermittent supply and poorly maintained networks re-contaminate water
– Recent trials found these water contaminated with E.coli and no residual chlorine
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Point-of-use (POU) water treatment technologies
• Correct and consistent use of POU technologies reduce the rates of child diarrhea substantially
• Intervention trials with liquid chlorine reduced diarrhea in many settings
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Chlorination
Aqua tabs
Ceramic filtration
References: Arnold and Colford, 2007
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Barriers to using POU water treatment technologies
• Worldwide, <10% most at risk households treat water correctly and consistently
• Studies conducted in Dhaka found 15 to 30% uptake of household chlorine tablets, even with free provision
• Cost, time, maintenance, water smell and temperature were added barriers
6Reference: Luby et al. 2008, Rosa et al. 2010, Luoto et al. 2011, Raymond et al. 2015 (accepted for publication)
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Automatic point-of-collection chlorination device
• An alternative water treatment technology that automatically adds an appropriate dose of chlorine at the last stage of water collection
• Improves microbiological quality of drinking water
• Does not require individual level behavior change in the households
• Potential to be deployed where water points are shared by low-income urban residents
7Reference: Pickering et al. 2015
Photo credit: Nuhu Amin
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Objectives
• To understand the turnover rates, strategies of competition and features of rental housing market systems
• To explore if landlords view provision of improved water as conferring a competitive advantage in attracting and retaining tenants
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Methods
• Study site: – Kallyanpur and Korail slums,
urban Dhaka
• Study period: – July - December 2013
• Eligibility criteria:– Shared water point users– Landlords, compound
managers and tenants living in the slum for > 5 years
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Data collection techniques
Techniques Type of respondents
Name of slum
Interviews= 25
N= 62
In-depth Interviews
Landlords Kallyanpur 10 10
Landlords Korail 10 10
Focus Group Discussions
Landlords Kallyanpur 1 8
Compound managers
Korail 1 8
Tenants Both 3 26
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In-depth interview with landlord Focus group discussions with tenants
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Typical housing in Dhaka slums
Kallyanpur Korail
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Rented versus empty rooms in a typical year (N=29 landlords)
IndicatorsMean Range
Rooms owned by the landlords 8.2 2-30
Rooms available for rent 7.0 1-26
Rooms rented 6.0 0-23
Empty rooms in previous year 1.2 0-5
Monthly rental fees in USD 20.7 12-29
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Rental market system in Dhaka slums
• Average monthly rental fee of a house was $21 including electricity and water supply
• A single room shared with average six people
• Support organizations, written rental agreements and advance rent payment systems were nonexistent
• Landlords maintain oral rental agreements for:– Payment details– Rules and responsibilities of sharing water and
sanitation facilities
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Looking for new tenants and new houses
• Females on both the tenant and landlord side mentioned to have most influence over choices:
– Which property to rent– Which applicant to select as tenant
• Word of mouth in the slums was the main strategy to attract tenants and rent houses
• Single men and followers of different religions were less preferred as tenants and landlords
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Characteristics of a good tenant (N=36)
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Cooperative user of shared water points
Own adequate furniture
Timely payment of rental fees
Provides >2 weeks advance notice
Nuclear family
Maintain cleanliness of WASH facilities
0% 20% 40% 60% 80% 100%
19
28
39
58
67
78
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Important factors in choosing new houses by tenants (N=26)
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Spacious cooking arrangements
No single male tenants
Water system nearby
Concrete floored rooms
Accessible electricity supply
Safe and accessible water supply
Lower rental fees
0% 20% 40% 60% 80% 100%
12
19
25
31
50
75
77
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Factors affecting rental properties and landlords’ investment
• Slums are often situated either on government or privately owned lands
• Slum eviction occurs frequently when public land is reclaimed by the government
• Evictions in both slums led to:– Damaging households, assets and properties– Forcing tenants to change slums and houses– Landlord reluctance to invest improving rental housing– Room vacancies
• 42% of tenants reported eviction 6-10 times in < 30 years
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Investments for rental households
• Landlords re-invested 6% of annual revenue that they received from a tenant in housing and compound improvements:
– New infrastructure and houses– Hand pumps– Sanitary and electrical services– Cooking areas to attract tenants
• Such investments also influences the increase in rental fees up to 5% in a typical year
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Conclusions
• Tenants value water quality when selecting among rental housing options
• Landlords may thus gain a competitive advantage if they can provide higher quality water at the compound level
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Next steps
• Intervention to deploy the automatic point-of-collection chlorination device to:
– Improve the water quality – Measure health impact– Provide competitive advantage in the rental market,
especially among female tenants– Benefit landlords to increase rental fees– Evaluate landlord and household willingness to pay
($0.12 - 0.25) for disinfected water– Collect feedback to refine the intervention
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Acknowledgements
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Stanford University Jenna Davis Amy J. Pickering Stephen P. Luby Yoshika Crider
FundingStanford University, Woods Institute for the Environment and the Urban Services Initiative at J-PAL
icddr,b Leanne E. Unicomb Nazrin Akter M. Nofiz Bin Zaman Probir K. Gosh Diana DiazGranados Astrid K. Dier Md. Mahbubur Rahman
Study participants Dustho Sasthyo Kendra (DSK)
Contact: [email protected]
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www.icddrb.org
icddr,b thanks its Core Donors