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Zimbabwe: Realtor in Shock Rent Hike
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Financial Gazette (Harare)
8 May 2008
Posted to the web 9 May 2008
Shame Makoshori
Harare
BARD Real Estate has hiked office rentals at Century House West to $130 billion per floor with effect from this month, raising the ire of tenants who fear that the burgeoning accommodation bills might cause their companies to collapse.
Bard wrote to the tenants on April 18 demanding that apart from paying the $130 billion, they had to pay the equivalent of two months' rentals, which translates to $260 billion.
In April Bard charged about $10 billion.
"We wish to notify you that we are proposing to review your rentals to $130 billion, excluding VAT (Value Added Tax)," Bard said in a letter dated April 18 2008.
"We remind you that your rent is due on or before the 1st of every month without demand. Outstanding amounts after the 1st of every month automatically attract an interest charge of 40 percent per month compounded reviewable from time to time. You are also requested to top up your deposit to the equivalent of two months' rent," the statement added.
The move has sent small-scale entrepreneurs, who constitute the bulk of tenants at the property, scurrying for alternative office space.
But many of the tenants said office space was not readily available in the central business district (CBD), forcing them to remain stuck at Century House despite the high rentals.
Complaining tenants said similar properties in the CBD were attracting rentals of between $30 billion and $80 billion per floor.
The Financial Gazette understands that some tenants had threatened to take Bard to the Rent Board but had to back down after realising that this would eventually result in them vacating their offices, with the resultant struggle of having to look for alternative accommodation.
A single floor at the property accommodates between five and seven companies.
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This means small entrepreneurs could be forced to folk out up to $26 billion per month in rentals alone.
This translates to about US$160 at the official exchange rate.
Information given to The Financial Gazette by the tenants indicates that a penalty of 40 percent interest on rentals is charged on defaulting tenants.
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