Wednesday, November 19, 2008

Housing rents have been frozen for a further six months for the tenth time in succession

Caracas Daily Journal (Jeremy Morgan):
Housing rents have been frozen for a further six months for the tenth time in succession. Landlords will not be able to demand or receive a rent raise until May next year -- and that's assuming the freeze isn't then decreed into force all over again.

The only difference with past practice this time around is that the measure was formally promulgated by the Housing Ministry as well as the Light Industry & Commerce Ministry and the Infrastructure Ministry.

For reasons never explained, the housing portfolio has until now had nothing to do with rent freezes. However, at the middle of this year, President Hugo Chavez used his expiring special powers under the Enabling Act to decree a reform giving the Housing Ministry a role in the matter.

Landlords complain they're in a cleft stick. Many tenants have security of tenure, and can't be moved out unless they're specifically on fixed short-term contracts; they've been paying the same rent for years, even as this is eroded by inflation.

Owners claim their incomes have fallen to the point where they can't pay for necessary repairs in order to conform to their side of the deal with their tenants. That, they add, doesn't dissuade some tenants from insisting that work be carried out.

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