Abstract
This article, using a descriptive-analytical research method, examines the obstacles to the realization of renting vacant houses based on the Completion and Rental of Residential Units Law enacted in 1977. In the final years of the Pahlavi regime, the housing crisis became one of the main social and economic challenges, profoundly impacting people's lives and the structure of society. The rise in tenancy and the shortage of suitable housing placed significant pressure on tenants, making the need for a comprehensive and effective solution essential. In this context, the Completion and Rental of Residential Units Law was designed to regulate the rental market and utilize the potential of vacant houses to provide housing. The primary goal of this law was to create balance in the rental market and facilitate people's access to suitable housing. However, the implementation of this law faced numerous challenges and obstacles that hindered the achievement of its objectives. The findings of this research indicate that the accurate identification of vacant houses, due to the lack of integrated and precise information systems, was one of the main challenges. Additionally, resistance from property owners to renting out vacant units and social concerns regarding legal changes were among the other significant obstacles to the implementation of this law. Many property owners, fearing a reduction in income or issues arising from renting out their properties, were reluctant to participate in this initiative.
Keywords: Completion and Rental of Residential Units Law, Housing prices, Rental market, Obstacles to realization, Legal requirements.
 
Introduction
The issue of vacant housing has long been a critical challenge in urban planning and housing policy, particularly in rapidly growing cities. In the final years of the Pahlavi era, Tehran and other major Iranian cities faced an acute housing crisis, characterized by rising property prices, increasing population pressure, and a growing number of unoccupied residential units. In response to these challenges, the Iranian government enacted the Law of Completion and Renting Residential Units in 1977 (1356 in the Persian calendar), aiming to address the imbalance in the housing market by encouraging property owners to either complete unfinished buildings or rent out vacant homes.
This law was introduced as a strategic measure to utilize existing housing stock more efficiently and alleviate the pressures of housing shortages, especially for middle- and low-income families. However, despite its well-intentioned design, the implementation of the law encountered numerous obstacles that hindered its effectiveness. These included legal ambiguities, lack of enforcement mechanisms, resistance from property owners, and social and economic uncertainties prevalent during the last years of the Pahlavi regime.
One of the central challenges was the absence of clear criteria for evaluating property value and determining rental rates, which led to disputes between landlords and tenants. Additionally, there was no comprehensive system in place to identify and register vacant houses, further complicating enforcement efforts. Property owners often resisted renting out their units due to fears of financial loss or difficulties in managing tenant relationships. The political and economic instability of the time including inflation, public unrest, and impending revolution also undermined the law’s ability to achieve its intended outcomes.
This paper aims to critically examine the barriers to the successful implementation of the 1977 Law of Completion and Renting Residential Units. By analyzing historical documents, newspaper archives, and legislative records from the period, this study explores the socio-economic and legal factors that contributed to the failure of this housing policy. It also investigates how the law interacted with broader urban development strategies and tenant protection frameworks of the time.
 
Materials & Methods
This study adopts a descriptive-analytical research methodology to investigate the obstacles to implementing the Completion and Rental of Residential Units Law (1977) , particularly focusing on its provisions regarding vacant houses. The law was introduced during the late Pahlavi era as a response to the growing housing crisis in Iranian cities, especially Tehran. This research aims to identify the structural, legal, and socio-economic barriers that hindered the effective enforcement of this legislation.
 
Discussion & Result
The implementation of the Law of Completion and Renting Residential Units (1977) was intended as a strategic policy to mitigate the housing crisis in Iranian cities, particularly Tehran, during the late Pahlavi era. However, despite its legislative ambition, the law faced significant challenges that ultimately undermined its effectiveness. This section presents and discusses the key findings of the research regarding the structural, legal, socio-economic, and institutional barriers that hindered the successful enforcement of the law.
One of the primary obstacles identified was the lack of a coherent institutional framework for identifying and registering vacant or unfinished residential units. Although municipal offices were tasked with drafting implementing regulations and collecting data on housing conditions, their efforts were often fragmented and lacked central coordination. For example, local authorities in Tehran and other major cities were instructed to quickly gather statistics on empty houses and incomplete buildings, but no standardized system existed for verifying these reports or enforcing compliance.
Moreover, the absence of a centralized database made it difficult to track property ownership and rental activity. As noted in newspaper reports from Ettela'at (Issue No. 15514, December 26, 1977), many applicants gave up on registering due to the inability to rent even a single unit, highlighting the inefficiency of the bureaucratic process. The lack of inter-agency cooperation between municipalities and national institutions further complicated enforcement.
The law suffered from unclear definitions and weak legal mechanisms for enforcement. While the legislation aimed to compel property owners to either complete unfinished units or rent out vacant homes, it did not provide clear criteria for determining fair rental prices or resolving disputes between landlords and tenants. In cases where landlords objected to proposed rental rates, a commission was supposed to issue binding decisions based on written complaints. However, this mechanism created tensions, as tenants expressed concerns about how they would maintain healthy relationships with reluctant landlords who were legally forced into renting (Ettela’at, Issue No. 15537, February 24, 1978).
Furthermore, there was no effective legal recourse for tenants who faced eviction or exploitation under the new regulations. The law’s failure to establish strong tenant protections led to widespread resistance from property owners and limited the law’s applicability in practice.
 
Conclusion
The Completion and Rental of Residential Units Law of 1977 was introduced as a significant legislative effort by the Pahlavi government to address the growing housing crisis in Iranian cities, particularly Tehran. Designed to encourage property owners to either complete unfinished buildings or rent out vacant homes, the law aimed to increase housing availability, regulate rental prices, and reduce tenant vulnerability. However, despite its ambitious goals, the implementation of the law faced substantial challenges that ultimately limited its effectiveness.
One of the most critical obstacles was the absence of a centralized and comprehensive system for identifying and registering vacant properties . Municipal authorities lacked the necessary tools and coordination to effectively track unoccupied units or enforce compliance. This institutional deficiency undermined the foundational step of the law the accurate identification of available housing stock and led to inconsistent application across different urban areas.
In addition, legal ambiguities and weak enforcement mechanisms significantly hindered the law’s success. The absence of clear criteria for determining fair rental rates led to disputes between landlords and tenants, while the lack of strong legal protections for renters discouraged many from seeking housing under this framework. Property owners, fearing financial loss, administrative burdens, or damage to their assets, often resisted renting out their units. Many preferred to keep properties vacant rather than risk complications associated with regulated tenancy.
Moreover, the law failed to address the specific needs of vulnerable groups , such as young people and singles seeking independent housing. Reports indicate that landlords favored family tenants over individuals, exacerbating the housing shortage for unmarried citizens. The Housing and Urban Development Organization, which should have played a pivotal role in mitigating these issues, appeared indifferent to this demographic's needs, further deepening the housing crisis.
The broader socio-political context also played a decisive role in the law’s failure. The final years of the Pahlavi regime were marked by economic instability, rising inflation, political unrest, and the looming revolution all of which diverted attention from long-term housing strategies. In such an environment, attempts to regulate property vacancy through legislation proved largely ineffective.
This study demonstrates that while the 1977 law was a well-intentioned policy , it suffered from structural inefficiencies, legal ambiguities, and socio-political instability . These findings align with international research on housing vacancy management, which emphasizes the need for robust legal frameworks, transparent enforcement, community engagement, and socio-economic incentives to ensure successful implementation.