Bulawayo small-scale businesses shutting down due to high rentals

Small-scale businesses in Bulawayo are reportedly shutting down because of high rentals charged by owners of the premises.

This came to light on Monday when about nine small businesses dealing mostly in repair and sale of electrical gadgets, accessories and other items were evicted from their rented shops for failing to pay rent. Those who spoke to Chronicle said the rentals being charged by landlords were too high and putting them out of business.

Chronicle conducted a snap survey after the eviction of the nine tenants and established that a number of shop owners were failing to pay rent.Those in the Central Business District (CBD) especially between 10th Avenue and Leopold Takawira Avenue said they pay more than a thousand dollars in rent. "We are being charged as much as US$1 000 while some are even paying US$1 500 per month for a small shop in the city centre. We hear that those operating down town are paying US$600 per month. The amounts are way too high considering that business is low," said a man who deals in  laptops.

The business people said the rentals excluded water and electricity charges. They appealed to the Government to come up with a law to regulate rentals in the city's buildings. Mr Elias Gomba, the owner of Asco Lite Electricals along Fort Street between 14th and 15th avenues, was evicted from the premises after failing to pay US$600 per month. He owes the owners of the building about US$4 000 which he said had been accruing since 2009.

Eight more shop owners were evicted from a building they were sharing along Hebert Chitepo Street between 12th and 13th Avenue. They said they owe about US$3 000 in unpaid rent and rates. Mr Gomba appealed to property owners to consider the location of the premises when charging rent because some premises that are near the periphery of the CBD had low business. "I just saw the Messenger of Court coming with a letter of eviction saying I owe US$4 000 in unpaid rent. I have been paying the little that I get. Last month I paid US$800 to try and reduce my debt and I was planning to pay US$1 000 but they have evicted me," said Mr Gomba.

"I am trying to move to another place but it is difficult because I have no money since business is low. I have rented this shop for nine years and would pay rent even during the economic meltdown between 2008 and 2009."

Mr Gomba said they (with other shop owners) had tried to engage the agents, N Khoza Consultancy to make payment plans but to no avail. Other shop operators said they also feared that they would be evicted because they also had outstanding bills.

"Everybody has arrears. This is just outside the city centre and they should be charging us about US$300 per month for us to manage as well. Most businesses were struggling three years ago and now when business is picking up, we are let down by landlords," said a tenant.

Another tenant added: "These people need to be dealt with, they own several buildings and they are left to do what they want. The Government should do something about them before it is too late. It is difficult to run a business now because we cannot make money while renting their premises."

Contacted for comment, Mr Khoza said rentals were calculated according to the size of space and no tenants had approached him to complain about the charges. He said while tenants would feel that the rent was too high, there were some who were not being cooperative and were just absconding paying rent.

"Litigation to us is the last resort. There are some who have not paid for more than a year now but what I would say is that we have never had complaints about rentals being too high. They are free to come to our offices so that we can talk," said Mr Khoza.