Windhoek
One of the implementation challenges of the contentious proposed Rent Control Board proposed by government to rein in out of control rental prices is a lack of information on the total rental stock available.
Also, controlled rental prices could actually limit the investment landlords make to improve and upgrade rental properties.
“There are no ratings of all the rental stock available which can be problematic when it comes to implementing any form of rent control. You can only control rent when you know what is available on the market,” warned Namene Kalili, Senior Manager Research and Development at the FNB Group. He further expressed concern about a lower rent-to-bond ratio if rent control is implemented, saying owners of rental properties could be forced to limit the money invested in their properties in order to keep rental prices lower.
Rent control has been defined as legislation that will impose a maximum price, or a “rent ceiling,” on what landlords may charge tenants. If it is to have any effect, the rent level must be set at a rate below that which would otherwise have prevailed.
Earlier last week, government confirmed that it is looking to operationalise the Rent Control Board as a matter of urgency to make renting more affordable for the majority of Namibians, many of whom cannot afford to buy houses due to astronomical prices.
According to Kalili, Namibian house prices have been increasing at around four percent on a quarterly basis to the extent that median house prices in the country are at around N$800 000, while the average income of a typical Namibian household is a mere N$76 000 per annum. This discrepancy in median prices and average household income has made buying a house unaffordable to the majority of citizens.
Operationalising the Rent Control Board was agreed upon by President Hage Geingob when he met with leaders of the Affirmative Repositioning movement at State House recently.
In a joint statement, both parties agreed to speed up the implementation of the Rent Control Board, as set out in the Rent Ordinance 13/1977, which among other things will regulate rental prices as well as resolve any disagreements arising from rentals contracts.