Many fear rent hikes will force poor on to streets

Dharam Ramdayal and his wife, Romilla

Dharam Ramdayal and his wife, Romilla

Published Jun 10, 2020

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DURBAN - Every month, pensioner Dharam Ramdayal needs about R2 000 to refill his oxygen tank, while his wife Romilla uses her old age grant to pay for their utility bills, rent and groceries.

They barely have enough money left at  the month-end and are concerned a proposed 10% residential rental rate increase by the eThekwini Municipality will leave them homeless. 

A report from the city’s Human Settlements Unit, tabled at the municipality’s executivecommittee meeting recently, recommended a 10% increase from next month.

The report said: “Human Settlements’ primary business objective is to provide sustainable and affordable rental housing stock to qualifying beneficiaries; and ensure that the facilities are kept in good running order through maintenance, general upkeep and repairs. 

“The current rental regime ranges between R40 and R1 200 and the revenue collected does not meet the budgetary requirements needed to operate the facilities in question, and financial sustainability is seriously threatened. The income generated is not enough to cover the costs that should be incurred to provide the service properly.”

It further found the situation resulted in the Rental Housing Department not being able to meet the upkeep of various facilities. 

This led to the deterioration and decay of the housing stock, which included hostels and municipal-owned flats.

The report was approved for the 2019/20 financial year but, due to technical issues, the increase was not implemented.

It stated the proposed 10% increase in rental across the spectrum would assist in reducing the overall deficit but would have no immediate effect on the operational budgets. 

Yogis Govender, a DA exco member, said the decision would affect almost 6 000 units and their occupants adversely. 

“This decision will invoke the wrath of tenants, juxtaposed against the painfully slow maintenance of these units, where the majority of the buildings have fallen into disrepair, look dilapidated and whose people are forgotten. 

“The city is now foisting implementation of an increase stating that the expected revenue to be generated will be approximately R37 million. We are all eager to find out how, when the collection rate is dismal. Realistically, what are they really expecting to recover now in the wake of Covid-19?” 

However, Msawakhe Mayisela, the eThekwini Municipality spokesperson, said the rentals charged were well below the economic recovery type of rentals. 

“The revenue generated from the rental payments is not adequate to cover the costs of operating, which include insurance on the buildings, cleaning, maintenance repairs and services (water, sewer, electricity and sanitation services). The rentals are heavily subsidised. The minimum rental is R65 per month and with an increase of 10% the new rent will increase by R6.50 taking the new rent to R71.50.”

For the Ramdayals, any increase would affect them. 

They have lived in the municipal-owned double-storey two-bedroom home in Lotus Park, Isipingo, for 20 years. 

Their son, 30, who is unemployed, his wife, 29, a general worker, and their two children, aged 5 and 10, live with them. 

They pay a monthly rental of R500 and their utility bill, which includes water, electricity and sewage, ranges between R1 500 and R1 800.

Ramdayal, 68, a retired builder, said he was asthmatic and had chronic obstructive pulmonary disease that resulted in breathing problems and poor airflow.

Romilla, 66, has arthritis and hypertension. 

“Over the years, I have suffered from asthma and at one stage battled TB, but from 2013 I became reliant on an oxygen machine. I have three oxygen tanks, which I keep in different rooms, including the bathroom. Every month, I refill two of them. I have no choice because I will die if I do not have the tanks.

“Besides the medication we get from the hospital, we still visit the doctor when we fall ill and get over-the-counter medication. My wife had double pneumonia and needed medication, which cost R400. I had to borrow money so I could get it for her.” 

He said they often bought groceries on credit from a tuckshop and their daughter-in-law helped to pay the account. They also had to pay for transport to Addington Hospital. 

He said during the Covid-19 pandemic, the city was selfish to ask that the rental be increased. 

“When these decisions are proposed, I don’t think the poor, elderly and the frail are considered.” 

Rajen Govender, 52, has lived in his double-storey municipal-owned flat in Bayview, Chatsworth, since he was born. 

His grandfather, with whom he stayed, initially rented the flat. He now lives in the home with his wife and their three unemployed

children. 

Govender, a manager for a cleaning business, said his monthly rental was R665. His electricity, water and sewage bill ranged between R2 000 and R2 300. 

“For the past two months, I have not worked due to the lockdown. I used the money I collected from the UIF (unemployment insurance fund) to pay my rental and utility bills. Instead of the municipality increasing our rentals, they should focus on recovering the rent from those who have not paid in years.”  

Mary Munoo, 58, of Shastri Park in Phoenix, said her sons, aged 34 and 24, sold blankets and paid the rent and utility bills. 

Her husband, Keliden, 59, who suffered a stroke, collected a monthly disability grant of R1 880. The money is used to buy groceries and for transport. 

Their monthly rental was R500 and they paid between R500 and R700 for electricity and water.

Munoo, a housewife, said her sons were unable to work during the lockdown and relied on Keliden’s grant. 

“We received a few food parcels but that lasted a few days. My sons returned to work last Monday but business is slow. Now, it is stressful knowing the rental could increase. Any increase would mean we cannot buy a loaf of bread, a sachet of milk, or a packet of sugar for a week.”

Mdu Nkosi, an IFP exco member, said: “We believe it is not a good idea during the Covid-19 pandemic as people are struggling now and even under the normal economic situation. 

“It cannot be correct for the municipality to assume that the residents will be able to pay for the 10% increase.” 

Sayed Iqbal Mohamed, the chairperson of the Organisation of Civic Rights, said it was immoral for the municipality to pursue the rental increase.

“Especially when the poor, old and single-headed households, in particular, are struggling to meet their current rental obligations. The lockdown has impacted negatively on South Africans, more so for low-income earners.”

Mohamed, who is also the deputy chairperson of the KZN Rental Housing Tribunal, said the municipality should defer any increases until December. 

“We call on the premier, who seems to be a person of integrity and a caring comrade, to intervene. We cannot have more people rendered destitute and those already in desperate situations to become homeless.” 

- THE POST 

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