 |
Restrictive Rental Markets in the Caribbean
Author: The Global Property Guide  | Posted: 01-06-2007 | Comments: 0 | Views: 28 | Rating: (50)  (?) 
 The Caribbean is a playground of the rich and famous. It is also seen as business-friendly. Perhaps surprising, then, that some Caribbean countries have strongly restrictive almost socialist-style housing market systems, with strict rent controls, and strong security for tenants.
In a study, the Global Property Guide(http://www.globalpropertyguide.com) examines the landlord and tenant systems of 19 Caribbean countries and territories in terms of rent control, security deposits and tenant eviction. With contributions from local law firms, each economy is rated as strongly pro-tenant, pro-tenant, neutral, pro-landlord or strongly pro-landlord.
The study notes that, against popular notions, a “pro-tenant” rental market is actually harmful to tenants in the long run. It discourages landlords from investing in new rental units, leading to less supply. As demand for rental units increases with population growth, shortages develop. Landlords lose the incentive to maintain and upgrade their rental units. The quality of the existing rental housing stock deteriorates.
The most restrictive rent control law in the Caribbean is enforced in the US Virgin Islands. For housing accommodations, the maximum rent ceiling is the rent in force and in effect on July 1, 1947. For buildings created and/or rented after July 1, 1947, the maximum rent allowed is the first rent charged for the unit.
In Jamaica, the Rent Assessment Board sets the rental for all commercial and residential premises. The annual rent ceiling is 7.5% of the assessed value of the premises.
In the Dominican Republic, there is universal rent control with the maximum monthly rent fixed at 1% of the value of the rental property, in effect, 12% annual rental returns.
Evicting tenants is a serious problem in some parts of the Caribbean. In the Dominican Republic, tenants get more or less perpetual security, notes law firm Guzman Ariza. Rental agreements normally last for three to six months. However, even if the contract has already expired, the tenant can continue living in the unit as long as rent is paid. If the landlord refuses to accept the rent, the tenant can simply deposit the amount Banco Agricola. The bank will hold the amount for the landlord and the tenant can stay in perpetuity.
The law in St. Vincent and the Grenadines also generously protects the tenant. Prior to eviction, the tenant is given at least six months to look for an alternative dwelling, according to law firm Knights Chambers.
The Global Property Guide’s view is that free rental markets, with adequate incentives for landlords, tend best to encourage the supply of rental housing. In the Caribbean, most housing projects focus on the direct provision of housing units with limited and, at times, dismal results. The misplaced focus on direct housing provision, long ago abandoned in Europe, is still in force in several countries.
By removing restrictions, most notably in the Dominican Republic and the US Virgin Islands, the rental market for local tenants could be developed, improving living standards.
---
Economics Team:
Prince Christian Cruz, Senior Economist
Phone: (+632) 750 0560
Cell: (+63) 917 735 2228
Fax: (+632) 325 0642
Email: prince@globalpropertyguide.com
Publisher and Editor:
Matthew Montagu-Pollock,
Phone: (+632) 867 4220
Cell: (+63) 917 321 7073
Email: matthew@globalpropertyguide.com
Global Property Guide
5F Electra House Building
115-117 Esteban Street
Legaspi Village, Makati City
Philippines 1229
info@globalpropertyguide.com
www.globalpropertyguide.com
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Source: http://www.articlesbase.com/business-articles/restrictive-rental-markets-in-the-caribbean-157064.html
About the Author:The Global Property Guide is a research publication and web site (www.globalpropertyguide.com) for the high net worth investor in residential property – providing information about the process and benefits of buying property in any country in the entire world.
|
Submitting articles has become one of the most popular means of generating quality backlinks and targeted traffic to your website. Join us today - It's Free! |
|
Related Articles
Research Firm Assails Rent Control in Middle East
By: The Global Property Guide | 06/05/2008 | Business
In an extended research article, regimes in about 40 countries are reviewed by the Global Property Guide, an international research firm.
Swiss, US Rental Taxes Highest in Oecd
By: The Global Property Guide | 25/09/2007 | Business
Buy-to-let income tax rates are high in some foreign countries, but in others, rental income is completely tax free.
Residential Investment Rating Downgrade for Moscow, Russia
By: The Global Property Guide | 01/06/2007 | Business
Effective immediately, the Global Property Guide (http://www.globalpropertyguide.com) is downgrading its Residential Investment Rating on Moscow residential real estate.
Slovak Republic Most Attractive Among Europe’s High Yielding Housing Markets
By: The Global Property Guide | 12/06/2007 | Business
The Baltics have till recently been Europe’s hottest residential investment destination, with Estonian house prices (e.g.) rising 556.41% between 1997 and 2006, and 245.95% in the past five years. But residential property in the Baltics is now expensive. Apartments in capital cities are priced at around the same level as in Copenhagen, Helsinki and Stockholm, according to research by the Global Property Guide (www.globalpropertyguide.com).
Asia’s Mortgage Market is Set to Take Off
By: The Global Property Guide | 26/04/2007 | Business
Almost a decade after the Asian crisis, the mortgage markets of several Asian countries are in much better shape and are poised for expansion.
Increases in capital, the consolidation of banks, and increases in foreign ownership and participation are spurring growth, according to a report released by the Global Property Guide.
The Business of Collecting the Rent
By: Carolyn Gibson | 10/12/2007 | Real Estate
Do you own rental property? Are you a real estate investor? Do you need your rent to help pay the mortgage? Have you had problems getting your tenants to pay the rent? This article will cover some important policies that you need to conduct the financial business of collecting residential rent.
Buying a Piece of the Caribbean
By: The Global Property Guide | 28/04/2008 | Business
In its latest survey of Caribbean property prices (March 2008), the Global Property Guide finds that in Bermuda, the average price of a three bedroom house and lot is around US$1.5 million.
A Mixed Year for Asian Residential Property in 2006, According to Global Property Guide
By: The Global Property Guide | 15/02/2007 | Business
Singapore experienced Asia’s highest residential property price increases during 2006, with 9.5% real (inflation-adjusted) house price rises.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Can I be fired
By: Beautiful | 09-07-2008
I work for the American red Cross and this year they started criminal background checks for anyone that started before 2003 they say by federal law they only can review an employees criminal records over the past seven years.In 1995 I was convicted of shoplifting which was a summary offense and i want to know if my employer can use that and fire me even though by law they say they can not review anything past 7 yrs (since that conviction I am a model citizen
Where to report unlicensed practice of medicine in ...
By: olegdavie | 09-07-2008
where to report unlicensed practice of medicine in New York State
House prices- best UK website?
By: malc | 08-07-2008
Which is the best site for UK sold house prices? Do any sites offer current property values like Zillow in the US?
What does TCV mean in a city property tax listing ...
By: clueless | 08-07-2008
what does TCV mean in a city property tax listing?qt=q
VA Class one misdemeanor question
By: Erree | 07-07-2008
I have a friend who has an ice cream truck in Loudoun County, VA. Along with ice cream, he was selling sparklers. Last week one of the kids bought the sparklers caught on fire and suffered severe burns when fire caught his shirt (45% of upper body). He doesn't normally sell the kid any sparklers, but the mom comes up to him and sells him it's okay to sell them to him. Anyway, my friend was pulled over by a car full of detectives last week and was held for about an hour before they issued him four Simmons (selling fireworks without a license, selling fireworks without insurance, selling fireworks on a public property, and stocking prohibited fireworks). All four charges are class one misdemeanors. The story is all over the news, and he worried about serving jail time. Are they allowed to bring up the boy's story in court and use it against him even if the boy was holding a candle to light up the fireworks, and they're saying it could me the candle that burned the boy and not the sparklers. Will he have to worry about going to jail. He did hire a lawyer and it cost him a lot of money. Thanks
San Isidro Ranch Company is located in Mexico or ...
By: jaber1949 | 07-07-2008
San Isidro Ranch Company is located in Mexico or USA
Q&A Powered by: 
Latest Business Articles
The Basics of Creating a Filing System That You Can Benefit From Starting Today
By: Tracey Lawton | 19/07/2008
In my brand-new article, I'm going to share with you 7 easy steps for getting your filing system in place. The summertime is generally a quieter time with a more slower pace of business, so use this time to get one of your core office systems in place.
The 9 Things You Will Want to Include in Your Email Newsletters
By: Katrina Sawa | 19/07/2008
You probably get numerous newsletters across your desk each month. How many of those do you really read? I am sure that you scan certain newsletters for valuable information, while you just toss others. Then, of course, there those like mine (chuckle), which you read every last word of.
How to Establish yourself as an Expert
By: Katrina Sawa | 18/07/2008
Establishing yourself as an Expert in your field is a great way to get added exposure, publicity and credibility for you and your business which will ultimately bring you more sales and more money!!
Women Owning the Workplace: Tips to Guide Female Entrepreneurs
By: Melissa Mashtonio | 18/07/2008
Women are taking the business world by storm, and it doesn't look like they're backing down. According the Womenentrepreneur.com, women-owned firms are the fastest growing in the country. Women are looking beyond the traditional roles and moving ahead to a new role: entrepreneur. This does not necessarily mean women are...
Getting Ahead in the Construction Industry
By: Duncan Freer | 18/07/2008
With new regeneration and Government housing targets, the construction industry is facing the toughest challenges yet. With new projects in commercial and residential developments, growing pressures for sustainable and low impact development and the need for low cost housing, better and faster results are being expected from everyone involved in...
Getting Ahead In The Rail Industry
By: Duncan Freer | 18/07/2008
The rail industry is a greener alternative for travel than any other method at the moment, and as a result is beginning to see an increase in investment and public interest. With the Government and business regulators placing such a huge emphasis on offsetting personal and private carbon emissions it...
Getting Ahead in the Utilities Industry
By: Duncan Freer | 18/07/2008
The Utilities industry is currently facing rapid change and is having to adapt to the many new demands made on it by existing and potential customers. Once dominated by state-run monopolies, the utilities sector of the twenty first century is shifting to respond to emerging competitors who are increasingly savvy...
Recessions Require Leadership From the Core!
By: Axel Meierhoefer | 18/07/2008
When things are going tough, leaders need to step up and deliver more than every. LEading fomr the core is what we need to succeed
More from The Global Property Guide
The End of the Global House Price Boom
By: The Global Property Guide | 07/07/2008 | International Business
Weighed down by the credit crunch and high inflation, the global house price boom has ended, according to the latest Global Property Guide survey of house price indicators.
Gloomy Days Ahead for Asia’s Housing Markets
By: The Global Property Guide | 08/05/2008 | Business
Asian property markets, though still relatively unaffected by the credit crunch, will soon be affected by inflation and higher interest rates, warns the Global Property Guide, because of rising food, fuel and other commodity prices.
Asia House Prices Lead the World
By: The Global Property Guide | 07/05/2008 | Business
Shanghai, China (up 35.4%) was the world’s strongest residential property market during the past full year, according to a compilation of official and private-sector statistics by the Global Property Guide.
Research Firm Assails Rent Control in Middle East
By: The Global Property Guide | 06/05/2008 | Business
In an extended research article, regimes in about 40 countries are reviewed by the Global Property Guide, an international research firm.
Buying a Piece of the Caribbean
By: The Global Property Guide | 28/04/2008 | Business
In its latest survey of Caribbean property prices (March 2008), the Global Property Guide finds that in Bermuda, the average price of a three bedroom house and lot is around US$1.5 million.
The Global Property Guide – Relaunched!
By: The Global Property Guide | 28/04/2008 | Business
The Global Property Guide today re-launched its web site to make its data more accessible.
Swiss, US Rental Taxes Highest in Oecd
By: The Global Property Guide | 25/09/2007 | Business
Buy-to-let income tax rates are high in some foreign countries, but in others, rental income is completely tax free.
Housing Transaction Costs in the Oecd
By: The Global Property Guide | 25/09/2007 | Business
For people buying property outside their own countries, the high costs of buying and selling residential property abroad (the transaction cost) are a significant negative factor. The Global Property Guide (http://www.globalpropertyguide.com) believes that in some OECD countries, such as South Korea, Belgium, Italy, these transaction costs are unnecessarily high.
|
|
Business 
