Remarkably few governments have taken rental housing issue as a very serious aspect. Hence, the main purpose of this study has been to identify and draw attention to the situation of the rental housing in Ethiopia with particular reference to the private rental houses. In order to achieve this objective a sample of 240 Tenants and Landlords were selected and relevant data were gathered mainly through questionnaires. The study also shows the reason of tenants to lent the house were by observing the location proximity( 30.6 percent) for the informal networking with relatives, family, and work place. Finally, the selection criteria tenants for landlords and landlords for tenants were varying from person to person.