Market Related Rentals

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OBJECTIVE:	In terms of the Housing Act, 1997, rentals charged on State owned leased properties should be adjusted to market-related rentals, as from a date to be determined by the Minister of Housing. The adjusted rentals should comprise of two elements, namely: Recovery of lessor's costs, such as maintenance, insurance, rates and service charges, cleaning, security, administration; and A return on the capital investment or a fair market rental.
START:	2002
END:	2004
DESCRIPTION:	It was decided to align the efforts of the Provincial Department of Housing regarding the establishment of market related rentals, with that of the City of Cape Town. This is also due to the envisaged transfer of Housing Board properties, in terms of the Housing Act, to the respective municipalities in the area that they are located. Market related rentals will be based on a Cost Recovery formula and not on physical valuations. A revised Business Plan for the Implementation of this programme as part of the so-called Phasing-out Programme was recently submitted to the national Department of Housing in which the date envisaged for the implementation of market related rentals was given as 30 June 2004. Contact Mr Nico Witbooi 021 483 2398 nwitbooi@pgwc.gov.za
SPONSORED BY:	Human Settlement Development (Department of Local Government and Housing, Provincial Government of the Western Cape)

The content on this page was last updated on 5 October 2004

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