Inspectors: Law caps rent at 20% of property’s value

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

Government inspectors yesterday asserted that Bahamian law prevents landlords charging tenants rental rates that exceed more than 20 percent of the property’s value.

Reno V Smith, chief price inspector for the northern Bahamas, said tenants on Grand Bahama have voiced multiple complaints about their living conditions, terms imposed by landlords and unfair treatment by the latter.

Speaking after the Consumer Protection Commission and consumer affairs held a Town Hall meeting in Bimini this week, where officials discussed tenant and landlord rights with participants, Mr Smith said there were not many complaints about landlords on the island over-charging. Complaints instead have focused on deteriorating infrastructure and environmental hazards, especially in Grand Bahama.

“It’s not so much over-charging, but landlords not keeping the accommodations in a liveable state, especially in Grand Bahama, deteriorating. We have a lot of deterioration and environmental issues,” said Mr Smith.

“There are septic tanks open or overflowing with sewage, or constant back-up of sewage in the bathroom. That becomes an environmental issue, and we get the environmental department involved with that. Those are the type of major complaints we find with landlords and tenants.”

Mr Smith said that, occasionally, there are disputes over landlords attempting to evict tenants without a court order and highlighted that only a magistrate can lawfully evict a tenant. “Every now and then a landlord would think that they have the authority to lock a tenant out of the apartment or house,” he added.

“They might give them notice to move. Some of them are calling it an eviction notice. No landlord can evict any tenant from the house or apartment. They can give them notice to move, but only the courts in The Bahamas, only a magistrate, can evict someone from a place.

“Every now and then, we’ll see the landlord changing the lock or taking the doors off the hinges to get a tenant out. That is against the law. If the tenant says something is missing from the house or apartment as a result of the landlord doing that, the landlord will be responsible for any loss of any goods that the tenant might have had in his or her apartment.”

Mr Smith added that, by law, landlords can only charge 20 percent of the value of the of the property as rent; must provide a receipt upon payment; and cannot withhold a security deposit for normal ‘wear and tear’.

“They can’t just set the price of rent at leisure. The Government’s position is you can only charge 20 percent of the value of the house or apartment. If it’s a triplex, that’s 20 percent divided by three. Some people think they could just charge whatever they want for rent, but it doesn’t work like that. Rent is, I don’t want to say, a control item, but we do have a Rental Board to assist consumers,” said Mr Smith.

“We also tried to let the landlord know what their responsibilities are to keep the place in a liveable condition, the yard clean and they are to issue receipts whenever a tenant pays the rent. They cannot withhold a person’s security deposit because the children might have written or drawn on a wall or things with little damage.

“That’s no reason to withhold a tenant’s deposit from them at the time, as that’s basic wear and tear, and so the landlord needs to know that they cannot hold withhold the person’s security.” Mr Smith said tenants were also made aware they have an obligation to pay their rent on time and ensure they do not damage the property in which they are residing.

“We also shared with tenants their obligations to landlords. They must pay their rent on time. They cannot damage the apartment house when they’re leaving and expect full compensation of the security deposit if the damage is beyond regular wear and tear,” said Mr Smith.

Comments

moncurcool says...

Does this guy think 20% is lil bit?

A triplex property valued at $300,000. 20% is $60K. Means rent is $20K per unit per month I can charge. When you only pay $800 per month, that is a steal of a deal. And especially when it is gated.

Posted 7 February 2025, 9:09 a.m. Suggest removal

Dawes says...

I was wondering if he means per annum, So $20k per unit per year or $1,666.67 per month. Still good change and a great ROI

Posted 7 February 2025, 9:24 a.m. Suggest removal

Porcupine says...

Perhaps a cap on government travel and waste would benefit a greater number.

Posted 7 February 2025, 10:56 a.m. Suggest removal

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