Draft rent bill under public discussion
The draft rent bill currently under review defines reasonable rent as an amount that is no more than 10% of the joint value of the land and improvements and makes provision for regional rent tribunals to oversee complaints and other related rent matters.
The draft bill currently states that no rent shall be considered reasonable, which after deductions of a list of items including insurance, rates and taxes, furniture, fittings and services and more, “gives an annual return to the lessor of more than 10% on the join value of the land and improvements.” The draft states that the prescribed percentage “must be considered the basic rate of interest normally imposed by banks on mortgage bond loans.”
Public input
The first public consultation that forms part of the Ministry of Industrialisation, Trade and SME Development's bid to finalise input for amendments to the Rent Ordinance of 1977 was held at a stakeholder workshop in Windhoek yesterday.
The ministry's permanent secretary, Gabriel Sinimbo, could not confirm yesterday whether further public consultations would be held, underlining that “given the urgency of the matter there will be inconveniences.” The stakeholder workshop yesterday was attended primarily by representatives of government ministries and agencies, representatives from local authorities and professional bodies, banks, and key stakeholders from estates and property agents. Members of the Affirmative Repositioning (AR) and the National Youth Council were also in attendance. Sinimbo opened the workshop by noting that government intended to improve its overview of the rental market, in order to prevent exploitation of lessees at the hands of property owners, but cautioned that this could not be done without considering the views of the lessors.
“Government has considered it important to look at striking a balance between lessors and lessees,” Sinimbo said, saying an “amicable” position had to be achieved.
He told the participants that their submissions, handed in earlier this week and after the workshop, would be considered but the government was not prepared to delay the matter extensively. The minister of industrialisation, trade and SME development, Immanuel Ngatjizeko, briefly reminded participants yesterday of government's decision in February to pause the establishment and appointment of a Rent Board, and instead to amend the outdated and impractical Rent Ordinance to align it with the government's objectives.
The minister also said that there were always two sides and the workshop was aimed at soliciting views especially from the lessors. He said numerous inputs had been provided by lessees to date and the ministry aimed to draft a “reasonable law”.
Tribunals
Adolf Denk, the consultant from Monas Advisory and Associates who was brought on board by the ministry to consult on the draft bill, told the participants yesterday that one of the chief aims of the amendments was to ensure adequate protection in the rental market. He explained that the amendments proposed the establishment of regional rent tribunals will help determine rent prices, based on a number of factors, including value of property, location and other means. In the draft bill, the rent tribunals will also act on complaints and claims related to the Rent Act. A rent tribunal will consist of a magistrate of the relevant district, and four additional members appointed by the minister. The draft bill stipulates that all lease agreements must be in writing, and a written lease agreement must be concluded even if a property was rented before the bill is enacted.
A copy of all lease agreements must be lodged with the relevant rent tribunal in the region. The draft legislation stipulates that a written receipt has to be provided to a lessee for all payments. The draft states that a deposit may not exceed one month's rent and the deposit must be invested by the lessor in an interest-bearing account with a financial institution. The interest accrued, which may not be less than the rate applicable to a savings account with that financial institution, must be paid to the lessee once the rental agreement ends.At such time, the lessor may apply the deposit and interest towards payment of damages for which the lessee is liable.
The draft bill contains further details on the appeal board, which will oversee matters brought to it if a lessee or lessor is not satisfied by a decision of the rent tribunal.
JANA-MARI SMITH
The draft bill currently states that no rent shall be considered reasonable, which after deductions of a list of items including insurance, rates and taxes, furniture, fittings and services and more, “gives an annual return to the lessor of more than 10% on the join value of the land and improvements.” The draft states that the prescribed percentage “must be considered the basic rate of interest normally imposed by banks on mortgage bond loans.”
Public input
The first public consultation that forms part of the Ministry of Industrialisation, Trade and SME Development's bid to finalise input for amendments to the Rent Ordinance of 1977 was held at a stakeholder workshop in Windhoek yesterday.
The ministry's permanent secretary, Gabriel Sinimbo, could not confirm yesterday whether further public consultations would be held, underlining that “given the urgency of the matter there will be inconveniences.” The stakeholder workshop yesterday was attended primarily by representatives of government ministries and agencies, representatives from local authorities and professional bodies, banks, and key stakeholders from estates and property agents. Members of the Affirmative Repositioning (AR) and the National Youth Council were also in attendance. Sinimbo opened the workshop by noting that government intended to improve its overview of the rental market, in order to prevent exploitation of lessees at the hands of property owners, but cautioned that this could not be done without considering the views of the lessors.
“Government has considered it important to look at striking a balance between lessors and lessees,” Sinimbo said, saying an “amicable” position had to be achieved.
He told the participants that their submissions, handed in earlier this week and after the workshop, would be considered but the government was not prepared to delay the matter extensively. The minister of industrialisation, trade and SME development, Immanuel Ngatjizeko, briefly reminded participants yesterday of government's decision in February to pause the establishment and appointment of a Rent Board, and instead to amend the outdated and impractical Rent Ordinance to align it with the government's objectives.
The minister also said that there were always two sides and the workshop was aimed at soliciting views especially from the lessors. He said numerous inputs had been provided by lessees to date and the ministry aimed to draft a “reasonable law”.
Tribunals
Adolf Denk, the consultant from Monas Advisory and Associates who was brought on board by the ministry to consult on the draft bill, told the participants yesterday that one of the chief aims of the amendments was to ensure adequate protection in the rental market. He explained that the amendments proposed the establishment of regional rent tribunals will help determine rent prices, based on a number of factors, including value of property, location and other means. In the draft bill, the rent tribunals will also act on complaints and claims related to the Rent Act. A rent tribunal will consist of a magistrate of the relevant district, and four additional members appointed by the minister. The draft bill stipulates that all lease agreements must be in writing, and a written lease agreement must be concluded even if a property was rented before the bill is enacted.
A copy of all lease agreements must be lodged with the relevant rent tribunal in the region. The draft legislation stipulates that a written receipt has to be provided to a lessee for all payments. The draft states that a deposit may not exceed one month's rent and the deposit must be invested by the lessor in an interest-bearing account with a financial institution. The interest accrued, which may not be less than the rate applicable to a savings account with that financial institution, must be paid to the lessee once the rental agreement ends.At such time, the lessor may apply the deposit and interest towards payment of damages for which the lessee is liable.
The draft bill contains further details on the appeal board, which will oversee matters brought to it if a lessee or lessor is not satisfied by a decision of the rent tribunal.
JANA-MARI SMITH
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