FCCC extends rent freeze
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THE rent freeze on residential and ground rent has been extended by the Fijian Competition and Consumer Commission (FCCC).
According to the commission, this extension was based on FCCC’s assessment of the FCCC (Rent Increase Restriction on Residential and Ground Rent) Order 2020 (Rent Freeze Order), which expired on December 31, 2021.
FCCC chief executive officer Joel Abraham said the extension meant that from January 1, 2022, landlords must not charge rent – for letting or continued letting of any premises under residential tenancy, including ground rent – in excess of the rent applicable to the same premises in 2021.
“Traditionally the objective of imposing rent controls was to counter inflation,” he said.
“However, rent controls in Fiji now serve broader functions, such as consumer protection and ensuring affordability of residential rental properties – especially in times where COVID-19 has impacted the livelihoods of so many.
“In reviewing the tenant-landlord relationship, several factors were taken into account, including fragmented laws surrounding landlord and tenant relationships, the effects of the COVID-19 pandemic and socioeconomic
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issues relating to landlords and tenants.”
The past two years was said to have been the most challenging for many Fijians because of COVID-19.
However, despite the easing of COVIDcontainment measures and reopening of international borders, the pandemic was still impacting many locals, especially those relying on renting as a means of acquiring affordable, accessible, secure as well as adequate housing.
“After all, the right to adequate housing is universally recognised as a human right,” said Mr Abraham.
The CEO also acknowledged President Ratu Wiliame Katonivere’s remarks during his address at the opening of the 2021-2022 session of Parliament last month, where he mentioned the Landlord and Tenants Bill as being on the legislative agenda for 2022.
“FCCC will be actively involved in discussions on this, and we will ensure that both landlord and tenants’ rights and responsibilities are given equal consideration,” he said.
“This will ensure a balanced legislative framework coupled with enforcement that is present to protect both landlords and tenants.”
FCCC advised tenants that any illegal rent increase or failure of landlords to issue proper agreements and receipts must be reported to the commission.
The rent freeze was stated to have been put in place on March 2, 2007, and rent that was applicable on a property on March 2, 2007, becomes the base rent and this is the rent that should continue.
For newer properties, the rent applicable for the first letting becomes the base rent and any increase thereafter would be subjected to the rent freeze in the period stated above, as mentioned by FCCC.
Landlords were required to keep copies of letting/tenancy agreements and receipts for up to a maximum of seven years to ensure transparency and accountability.
Failure to issue letting/tenancy agreements and receipts was stated to be an offence under the FCCC Act and appropriate actions would be taken against those landlords for these breaches.
FCCC said tenants were urged to request landlords for an agreement, receipts and to carefully read the terms and conditions before signing the same.
Landlords were urged to report tenants who delay signing the agreements.