Proposals For A Reduction In The Cost Of Rent
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Loading... - Karimi Kuria
- 20 Sep 2022
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Following the recent Speech by the President of the Republic Mr Macky Sall, most of which will have focused on the cost of living, a crucial point emerged for the majority of citizens: the reduction in the cost of rent.
I cannot elaborate without recalling that in 2014, we had already had a law, adopted by the National Assembly on January 15 of the same year, promulgated a week later: the law relating to the reduction in the cost of rent.
Unfortunately, this will not have the desired effect, and it was still predictable. How can the cost of rent be lowered by relying on the sole constraint placed on the backs of landlords who, let us remember, for the most part, have often gone into debt precisely to be able to supply the market with rental properties?
How can we count on the application of this law, without there being any ''safeguards'' to control the correct application of the texts? Without also accompanying the tenants so that they can trace the reality on the ground, or just shout their dismay?
Let's be clear, I am in no way for the establishment of a binding law for owners. There is a real risk: that of destabilizing an entire sector, particularly that of construction. This attempt at regulation by constraint seems to me quite dangerous when we know that real estate is one of the most dynamic sectors in Senegal.
Lowering the cost of rent without real compensation for the owners is in truth to make it bear the thousands of people who work every day in the building: developer, real estate agencies, but also and above all masons, painters, plumbers, electricians, security guards, maintenance workers, etc.
The sudden and uncontrolled decline will inevitably affect all professionals in the sector who are themselves, for the most part, tenants. What end results are we looking for? Who will foot the bill in the end?
And besides, what price of rent are we talking about? Who decides and controls the prices? To date, there is not really an existing body that is active on this. There is no transparency on rental prices and so how do you know what the right price is? Read More…
