Arbitrary rent increases hurting tenants

Many landlords increase rental rates at will, forcing tenants to dig deeper into their pockets, writes ERIC WAINAINA

In January, Joyce Wairimu returned from her village in Nyahururu where she had gone to spend Christmas holidays to find a notice from her landlord at her doorstep.

Wairimu, who lives in a rental flat in Kiambu town, said the letter, which was also given to other tenants, said the rent had been increased by ten per cent. The notice was to take effect in two months.

The reasons given by the landlord, through a property agent, were that the cost of living had gone up, hence the need to increase the rent.

Previously, Wairimu, a mother of one, was paying Sh10,000 for the one-bedroom she lives and with the increase, the rent rose to Sh11,000, with water, power and garbage collection bills not included.

However, despite the rent increase, no extra services were added neither were the existing improved.

“It was just a matter of think-and-do on the part of the landlord because not even painting of the houses or anything new was done. They argued that the cost of living had gone up…I think that was just an excuse,” saysWairimu.

John Kamau has been living in one of the oldest rental flats in Kiambu town since 2009. When he moved in, the rent was Sh5, 000 for a one-bedroom house, but the landlord has been increasing it time after time until it now stands at Sh10,500 per month, besides utility bills.

“They do it at will and we occasionally receive letters increasing rent by a slight per cent and if you dare protest, the landlord will tell you to move out and get a cheaper house. Housing seems to be an interesting business where the landlords just collect money and increase charges the way they want,” he says.

Analysts say lack of regulation in the sector has left tenants vulnerable to “extortion” by the landlords who have the privilege increase rent whenever they wish.

It is common to get two apartments almost similar in the same vicinity charging differently, depending on the owner.

Daniel Mwangi, a tenant in Kirigiti, says rent has been shooting up. He says landlords set new rates every time a tenant moves out, without making any renovation. Before, Mwangi says, a single room went for between Sh1,200 and Sh2,000. Today, a single room fetches at least Sh3,000 per month, while a double room, which went for between Sh3,000 and Sh4,000, is now going for between ShSh6,000 and Sh8,000.

A one-bedroom unit, which used to go for between Sh5,000 and Sh7,000, is goes for as high as Sh16,000 in Kiambu.

In the recent past, owners on old buildings have been doing minor renovations to set rental rates equal to the new modern houses.

When occupying to a new house, tenants, apart from paying a one-month rent and a refundable one-month deposit, are sometimes asked to pay a non-refundable agreement fee, sometimes as much as Sh5,000.

This means that when renting a Sh11,000 house, the new tenant would be required pay Sh22,000 (one month rent and a deposit), Sh2,500 power deposit, a similar amount as water deposit and the agreement fee — ranging from Sh1,000 to Sh5,000 — payable to the managing agent.

And when vacating the house, many landlords who manage their own houses, give back the deposit with a lot of difficulties.

John Mwaniki, a real estate and property agent says lack of a body to control rents is to blame, saying there are no justifiable reasons to the regular increments.

“To solve this, the government must have a strong tribunal which will set the rent rates depending on the house size, location and the construction mode,” Mwaniki says.

Mwaniki says the government should step in and control the interest rates, saying some landlords are compelled to hike the rates to be able to service bank loans.

“There are some unscrupulous landlords who increase rent just to get more cash; but others do it because they are also living at the mercy of banks and other financial institutions, which have been increasing interests rates on loans and mortgage, hurting the borrowers,” he added.