The Minister for Industry, Trade and Tourism, Hon. Faiyaz Siddiq Koya today announced an extension of the freeze on residential properties and ground rents for one year, which will now expire on 31 December 2016. This extension is based on the assessment undertaken by the Fiji Commerce Commission.
The Hon. Minister emphasised that the extension of the order means that between the period of 1st January 2016 to 31st December 2016, a person must not charge a rent for letting or continued letting of any premises under residential tenancy, including ground rental which is covered by the Commerce Commission Decree 2010, in excess of the rental applicable to the same premises in 2015.
Minister Koya reiterated that the rent freeze has been in place since 2 March 2007. Hence, the rent that was applicable on a property as at 2 March 2007 becomes the base rent and this is the rent that should continue until the end of the year 2016. For example, if a property was rented for $500 a month on 2 March 2007, then $500 becomes the maximum rent of the property that should be applied between the period 2 March 2007 and 31 December 2016. Any rent amount in excess of $500 for the said property will be illegal and in breach of the rent freeze order. For new properties, the rent applicable for the first letting becomes the base rent and it cannot be increased.
Any increase in rent from the period 2 March 2007 and 31 December 2016 will be deemed illegal and penalties including on-spot fines up to $2000.00 can be imposed by the Fiji Commerce Commission under the Commerce Commission Decree 2010.
The rent freeze has been extended in an effort to maintain a certain level of control to ensure fair treatment of tenants. Traditionally the objective of imposing rent controls was to counter inflation. However, rent controls in Fiji now serve broader functions, such as consumer protection and ensuring affordability of residential rental properties. This also ensures that the Fijian Government is fulfilling its obligation of providing access to affordable housing.
The Minister also stated that effective from 1 January 2016, it is mandatory for the landlords to provide letting agreements and receipts. The rent freeze order has been amended to make it mandatory for the landlords to issue proper agreements and accurate receipts to tenants.
Failure to issue agreements and receipts is an offence under the Commerce Commission Decree 2010 and appropriate actions will be taken for breaches.
In order to ensure that appropriate level of protection is accorded to tenants and at the same time, the interest of landlords are protected, the Ministry of Industry, Trade and Tourism is working with the Solicitor General’s Office and the Fiji Commerce Commission on a proposed Residential Tenancy Act.
The Government calls on all the Fijians to observe the requirements under the Rent freeze order and abide by the same. Members of the public are encouraged to contact Fiji Commerce Commission for any illegal rent increase and failure of the landlords to issue proper agreements and receipts.