The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

The Rent Control Act (RCA) was yesterday branded out-dated and ineffective by price control officials because it only applies to real estate valued at less than $75,000.

Jason Johnson, a price inspector with the Department of Consumer Affairs, said the $75,000 “ceiling” makes it hard to enforce price control mandates, and protect tenants from unscrupulous landlords, because residential property prices in New Providence especially are far in excess of that benchmark. As a result, officials can often only attempt to "mediate" between landlords and tenants when disputes arise.

“What we mainly do is mediate between landlord and tenant, but there is a ceiling of $75,000 and the Rent Control Act does not apply to anything above that," he added.

The Rent Control Act's section four states: “A dwelling house shall not be protected under this Act if it is established that it's assessed, determined or declared value, whichever is appropriate and effective, exceeds $75,000.”

The Act was last amended in 2008 where the ceiling was increased from $25,000 to $75,000. However, with the explosion in Bahamian property values, most duplexes and triplexes - and even single dwelling homes - are not captured by the provisions for rent control.

Mr Johnson added: “Landlords and tenants have certain rights, so we basically let them know what their rights are.”

The Department of Consumer Affairs is also making changes to its inspection protocols due to the complicated nature of online advertisements and how these entice customers to make purchases online. Its inspectors are also visiting the Family Islands more.

“We have some inspectors on the Family Islands, and what we intend to do is visit them more frequently,” Mr Johnson said. He also spoke to concerns that small food retailers are non-compliant with the price control regime.

“I will just say that some of the older stores have been around much longer, and they are more [in line with] price control because we have been going to them longer. Some of the 'Mom and Pop' stores are really unaware of some of the rules and regulations of price control. So when we go there we inform them and, most of the time, they comply,” Mr Johnson said.