Property owners in St. John’s say long-standing rent controls are making it financially impossible to repair and upgrade aging buildings, warning that limited allowable rent increases leave them unable to fund basic refurbishment in the capital.
During a public consultation on the future of St. John’s, one property owner said rent increases are effectively capped at between 10 and 15 percent, arguing that such limits do not come close to covering the cost of repairs, materials and labor.
The speaker said the restrictions mean owners often absorb rising costs without the ability to reinvest in their properties, contributing to deterioration rather than renewal.
The concern was raised as part of a wider discussion on urban decay, with property owners arguing that enforcement alone will not reverse decline unless the financial realities of maintaining buildings are also addressed.
Government officials acknowledged the issue during the consultation, noting that outdated rent legislation has become part of the broader challenge affecting building upkeep and investment in older urban areas.
VIDEO
WATCH: A property owner explains how rent caps of 10 to 15 percent make it financially difficult to refurbish buildings in St. John’s, as concerns mount over the economic drivers of urban decay.
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So dem carn do likkle likkle? Always with some excuses. People always wants things to be subsidized.
It sounds to me like there are missing details. Inflation only ballooned in recent years and we certainly do not know what period they are referring. If there is a 10 to 15 percent increase year over year from 1990, that certainly trumps the average inflation over the period. Likewise, we do not know what margins they were receiving during that time and whether it was truly fair market value or an arbitrary price imposed and maintained by the collective. There are way too many gaps to this argument without truly knowing what the details are.
Proper financial management by property owners by being more fiscally prudent can also help. Yes, it means a little less profit in your own pocket monthly but if you collect rent from month to month and use it all without making preparation for some of that rent to go towards the expenses of owning the property then you have a problem when repairs are necessary.
So one has built a property and is going to rent that property, what one has to take into consideration when affixing rental rate is the regular annual costs of having that property, so property tax, insurance and a mortgage if one is in place. Total that and in the case of the mortgage the monthly payment and in the case of the others one twelfth of the annual costs. Then you have to calculate repairs and replacements. Again divide that figure by twelve. Those monies should be placed into an account that is only used for those purposes. What is left over is your profit margin. By doing this, at the end of the year you would not be struggling to pay property tax or insurance and what is put aside for the maintenance of the building you would be building that nest egg. Not waiting until a Tennant has issues you scramble.
Another glaring example of the Government incompetence.
The video shows a property owner’s experience with regards to rent regulation and building conditions.
For those who has an interest who was not able to attend.
It would be interesting to know what did all the Ministers gad to say about issue. The video sHis them sitting at the table like dummies.
The government should not be telling landlords how much to rent their properties for. Those are examples of bad laws. The land lord should be able to set their own rent once there are currently no tenants. If the potential tenant thinks the rent is too high then they can rent somewhere else.
What is unreasonable though is if the landlord arbitrarily raises the rent while they have current paying clients.
Again all of this should be handled between the lawyers and clients. The government should concentrate on collecting their taxes and maintaining the country’s infrastructure.
Oh come on…even to power wash the front of your buildings? Power wash the entryway? A fresh coat of paint?
@Just Saying
Well they’re damned if they do and damned if they don’t.
If the rent is too high, we call on the same government to step in and regulate what people will call rent gouging.
If the rent is too low, the same property owners say they’re not making enough to be able to maintain their properties.
Take out the regulations and the property owners will increase the rent. Small business renters will be squeezed out and the Chinese and Middle Easterners will take the spots and we will complain that they’re taking over.
Damned if they do and damned if they don’t……..
The government wants to make massive amounts of money on the ports, then turn around and expect business owners are not going to squeeze the normal man for every dime to get that money back.
Do better negotiating at the ports with the suppliers and the business owners, then you can be fair in your regulations.
So it all start with the government that regulate the laws and standards of living.
They have the power, so instruct and use it wisely. But this government as we know l, sucks at negotiating..they are terrible at it, so many times they end up with the shitty end of the stick, and now the people are left to pay down their incompetence.
There is a solution to many of these things, but when everyone is just trying to ripoff one another to compete for has the biggest house, this is what you get.
A white friend of mine once took me on a site seeing drive up the A1A corridor of palm beach area here in Florida, and I was amazed at some of the houses and yachts that I saw..so I turned to him and ask him, how the heck people get this kind of money?
He turned to me and said plain and straight to my face with no hesitation, they are all thives and robbers, that’s how they got it.
I never forgot that..it was 20 years ago.
People in power must have a heart for the people they serve, otherwise it goes to shit fast.
We have enough examples here in Antigua.
If landlord’s do preventative maintenance rather than generl maintenance when something get real bad then the 10 or 15 percent increase can work for the repairs or .aintanance will not be that high
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