admin
Sithandazile Moyo Business Reporter
THE ongoing liquidity crisis has affected the viability of the country’s property industry with the Estate Agents Council (EAC) urging the deferment of rental hikes.EAC chairman Oswald Nyakunika said while demand for space has remained high the ability and willingness by tenants to pay was low.
“The current liquidity and cash crisis is affecting viability of many businesses and their ability to pay rentals,” he said.
He said the liquidity crisis has affected many companies making them unable to pay their rentals.
The demand for property Nyakunika said was high but what was lacking was “effective demand that is from tenants who willing and able to pay.”
He advised property owners to take time when choosing tenants to avoid situations whereby tenants would fail or have problems of paying rentals.
“Under the circumstances and in the current economic situation it is advisable to take time in choosing tenants,” he said.
He said the reason why most buildings were empty was that most agents were taking time in choosing potential occupants.
“After losing what used to be blue chip tenants most agents are taking their time in choosing replacements,” he said.
Nyakunika said EAC was working on ways to ensure that rentals were not increased until the economic situation improves.
“We are advising most clients to defer rent increases until the economic situation improves,” he said.
“We are taking efforts to control operating cost in most building by installing cash power, and wherever possible introduce separate meters for water,” he said.
Operating costs contribute a substantial part of total occupational costs.
Online Reporter