News / Local
Masvingo City council reduces rentals as hardships bite
20 Jun 2016 at 07:33hrs | Views
According to Masvingo Mirror, council is currently owed $135 896 by
tenants and the debtors will be required to sign an acknowledgment of
debt before the reviews are made.
A company that is renting out Caravan Park is one of the biggest debtors owing a total of $23 009, 44, according to council minutes. The company is supposed to pay a total of $2 800 a month and council has resolved that the rentals be reduced to $1 400 a month if the company renting out the premises comes up with an acceptable payment plan to clear the debt.
A full council meeting held last week noted that almost all tenants renting council properties like beerhalls, car parks, school premises and other facilities were in serious default and it was unlikely that they will be able to clear the debts if the rentals are not reviewed downwards.
Another big debtor is a company running Kubatana Pre-school in Mucheke which has accumulated a debt of $50 000 while Sunshine Day Care which is run by a local businessman and is located in Hillside has accumulated $18 036.
The council is owed $13 162 for rentals of Chiwororo Beerhall in Pangolin, Mucheke $10 889 rentals for Manhede, $9 078 by First Funeral, $8 280 by Compass Private Limited and $1 391 for Sarudzai Beerhall among several other debtors.
"The committe noted with concern the accrued arrears. The director of housing and community services was instructed to engage the tenants to sign and acknowldgement of debts for their arrears, come up and implement and acceptable payment plan subject to which their lease rentalswould be reduced as per council proposals," read part of the resolution.
The minutes did not indicate whether there will be a review when the economy improves as some of the rates drops way below market rates after the reviews.
A company that is renting out Caravan Park is one of the biggest debtors owing a total of $23 009, 44, according to council minutes. The company is supposed to pay a total of $2 800 a month and council has resolved that the rentals be reduced to $1 400 a month if the company renting out the premises comes up with an acceptable payment plan to clear the debt.
A full council meeting held last week noted that almost all tenants renting council properties like beerhalls, car parks, school premises and other facilities were in serious default and it was unlikely that they will be able to clear the debts if the rentals are not reviewed downwards.
Another big debtor is a company running Kubatana Pre-school in Mucheke which has accumulated a debt of $50 000 while Sunshine Day Care which is run by a local businessman and is located in Hillside has accumulated $18 036.
The council is owed $13 162 for rentals of Chiwororo Beerhall in Pangolin, Mucheke $10 889 rentals for Manhede, $9 078 by First Funeral, $8 280 by Compass Private Limited and $1 391 for Sarudzai Beerhall among several other debtors.
"The committe noted with concern the accrued arrears. The director of housing and community services was instructed to engage the tenants to sign and acknowldgement of debts for their arrears, come up and implement and acceptable payment plan subject to which their lease rentalswould be reduced as per council proposals," read part of the resolution.
The minutes did not indicate whether there will be a review when the economy improves as some of the rates drops way below market rates after the reviews.
Source - Masvingo Mirror
