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YOUNG MAN'S VIEW: Rent Control

By ADRIAN GIBSON

ajbahama@hotmail.com

IN THIS country, the strong societies that were founded by African slaves and were anthological/archaeological gems have now deteriorated into squalid pigsties.

This week, I was arduously researching and thinking about discussing another topic—one that is currently quite controversial—but I have decided to put that aside until next week in favour of discussing an issue that affects so many Bahamians on an everyday basis.

In New Providence, Bahamians and immigrants pay hefty rents to reside in Over-the-Hill shanties and dilapidated buildings throughout the island, apparently without any rent control as landlords rent dwellings at any rate they fancy.

The Rent Control Act is outdated and needs to be completely overhauled and amended. Frankly, the Act is so pro-landlord, with no legal restrictions on deposits, no affect on most common rental dwellings and has no oversight over vacation rental which can often be leased at excessive rates. Although there is supposed to be a Rent Control Board, comprised of ordinary citizens and chaired by a magistrate, this Board is practically toothless since the Act only covers properties worth up to $75,000. This is dim-witted and needs urgent updating, since hardly any apartment, condo or house is worth less than $75,000 these days – even in some parts of the ghetto!

Let me also clearly state that any amendments to the Act must also not be lopsided in favour of would-be tenants, as there are some who are simply filthy and/or destroy rental accommodations, thereby leaving many landlords with unnecessary debt. There must be a sense of reason and responsibility on both sides.

Rent control places a price ceiling on rental units, promotes fair play and limits the price a landlord can charge a tenant, outlining the services a landlord must provide and giving tenants the right, if a landlord fails to uphold his/her responsibilities as it relates to maintenance, to temporarily withhold rent or demand a lower rent.

The Bahamas must adopt more comprehensive rent and eviction control laws, especially as most Bahamians rent living accommodations. Enforcement of rent control, and dispatching inspectors to investigate unscrupulous landlords suspected of acting in contravention to the Act, will reduce instances of profiteering through unfair rental rates or unreasonable rent hikes and mandate that landlords repair hidden defects and carry out adequate maintenance of rented properties. Implementing tougher rent control laws will also ensure the diversity of neighbourhoods and prevent landlords from imposing rent increases that force persons out of an area.

In New York city, a Maximum Base Rent system (MBR) establishes the maximum allowable rent for a place, sets guidelines that cover the cost of maintenance and building improvements, allows for landlords to make slight increases (up to a maximum of 7.5 per cent) every two years until the MBR is reached, and is calculated depending upon the water and sewerage charges, real estate taxes, operating and maintenance expenses, loss allowances, and upon vacancy and return of capital value.

Frankly, effective rent control should also address lease renewals, evictions and senior citizens. These amendments would ensure that tenants are not unfairly evicted because an unscrupulous landlord wants to raise the rent and that the elderly aren’t saddled with rent increases in their old age.

Some time ago, The Tribune ran a story about a 74-year-old Coconut Grove resident whose landlord raised the rent for a small wooden house to the point where it exceeded his meager pension. Senior citizen Maxwell Williams was living in substandard conditions – a clapboard structure, no electricity or running water, and an outdoor toilet – for $250 per month.

Mr Williams, who previously was only requested to pay at the most $50 a month for the dilapidated shack, had his rent adjusted when his elderly landlord died and her granddaughter inherited the property. He claimed that although his new landlord made no renovations or upgrades to the building, she raised the rent from $50 to $250 per month – even higher than his sole income of $230 per month (old age pension).

In addition to still having to use an outdoor toilet in the bushes behind the house, Mr Williams’ termite infested roof – held up by two pieces of wood – leaked and the walls were rotting through.

Every other day in New Providence, I see unkempt apartments and unsightly buildings with broken windows, many of which appear to have not been painted in years. In some instances, particularly the ghettos of Nassau, people seem to live a peasant-like existence. In these rundown sections of society, landlords are constantly exploiting desolate tenants who dejectedly live in sagging, grubby clapboard shacks with “pee buckets” in one corner.

Contrasted to the suburbs, some of the places being rented are only comparable to a broken-down garden house. These inner-city areas are obscured by overgrown weeds, prickle patches and bushes, littered with garbage, wooden shipping crates and old, rusted appliances that are strewn about adjoining yards!

In some parts of the “suburbs” of Carmichael, Cowpen Road and off Village Road, similar living conditions are observed. I have even seen leaning, rickety wooden houses on Shirley Street, which are complete eyesores and probably rented in excess of their real value.

I have heard stories about the grimy walls, blocked toilets and the “dutty” mattresses that come with some rented accommodations. Any tenable place should be approved by the Ministry of Works and the Department of Environmental Health, and must have an occupancy certificate! Yet, there are many Bahamians and immigrants living like “slum dogs.” Quite honestly, the film Slum Dog Millionaire could have been easily shot in New Providence!

According to section 20 of the Rent Control Act:

“Where, upon a determination of the value of a dwelling-house or of the furniture, the Boards finds that, in all the circumstances, the value declared by the landlord is unfair and unreasonable, it shall order the landlord to repay to the tenant the difference between the rent as a percentage of the determined value and the rent as a percentage of the declared value for the period of tenancy not exceeding one year immediately preceding the date of determination, and may institute proceedings against the landlord for the offence of making an unfair and unreasonable declaration.”

The aforementioned rarely happens! The Rent Control Board obviously has a lot of work to do and frankly, if the Consumer Affairs division of government sends out inspectors, they would easily find hundreds of cases where tenants are being charged unreasonable rates.

Since the government’s real property tax exemption is $250,000 for first time homeowners, $250,000 to $300,000 should also be the applicable price ceiling for homes falling under the Rent Control Act, not the measly $75,000 that the Act currently covers.

According to the Act, the rent lawfully chargeable should not exceed 15 per cent, per annum, of the value of the property, or 20 per cent per annum of furnished residences. Well, how many landlords really observe this decree?

Indeed, whilst tenants are subject to rights of enjoyment – meaning they cannot be simply kicked out without a court order – I would also posit that landlords also be protected from tenants who destroy their property and consistently, and sometimes intentionally, fail to pay rent. Revamping the Landlords and Tenants Act, as well as the Rent Control Act, would only be effective if it leaves both the landlord and tenant in a win-win situation.

Comments

charlie 3 years, 12 months ago

While I agree there are many unscrupulous landlord that rent deficient buildings this article is one side as it only favors the tenants. my wife and I are landlords, we came from the ghetto, we now live in the suburbs, but our house we although wooden are built just like any home in the suburn, I take pride in my rental homes because I realise it represent a means of income and a better way of life for me and my family, I maintain my yards and the building keeping them paint at all times and inspected because I have had bad tenants who don't pay rent, of if they do, they destroy things in your rental house so that the same money you get you have to pay right back out to get stuff fix, a lot of tenants have the mentality that you should let them live in your hour for free because you have a nice home elsewhere. but they don't realize what you achieved came from making sacrifices. which they don't want to do for themselves but still live in someone else house who have made sacrifices to get what they have for free, many are very nasty, and have no shame with it. I have to many time go and rake up people personal garbage from their front doors (sanitary pads, etc,) clean off the inside of their doors, and steps because they don't seem to have a problem with a dirty door or front step. In the passed I have carry many tenants to court to evict them for not paying rent, but many of them still remain friendly with me because they know they were at fault and I had always strive to be a good landlord doing my part as I should and expecting the same of them.

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