BUSINESS MAVERICK: Property managers claim municipal rates are now extortionate, municipalities don’t see a problem

A battle is brewing between landlords, who are the owners of immovable property upon which retail, commercial and industrial complexes have been developed, and the municipalities that depend on those landlords and their tenants for a good portion of their income.The tussle is over the fees that municipalities are charging for the provision of services like water, electricity, refuse removal and sewerage.

“It’s a nightmare. Our comments are falling on deaf ears,” says Izak Peterson, CEO of Dipula Income Fund. “The problem is that property owners invest in and renew their properties in the belief that the value of those assets will continue to increase, but when expenses grow faster than the property value, it becomes a zero-sum game.”

“As Salga we are not aware; if there is a specific case, please provide us with the details for us to investigate further and respond appropriately,” says Sivuyile Mbambato, spokesman for Salga. “There is legislation, stipulated procedures and processes that municipalities need to follow.” In Mangaung in the Free State, remuneration costs for all staff will increase by 3.95%, modest at face value. However, the number of staff decreases by 14.27%, meaning that on average, the remuneration per head rises from R405,000 to R492,000, an increase of 21.26% per person.

“There is a misconception that commercial property owners can go on absorbing these exorbitant increases forever. They cannot, and sadly it affects large and small businesses alike as it makes its way into the pricing of goods and services.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Business Maverick: South Africa’s Economy Probably Shrank by A Third in PandemicSouth Africa’s economy probably contracted more than 30% in the second quarter when restrictions to curb the spread of the coronavirus shuttered almost all activity for five weeks, according to central bank forecasts.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Cape Town Port Delays Hit South African Fruit, Wine ExportsDelays at Cape Town’s main port are forcing fruit exporters in South Africa’s Western Cape province to truck their produce hundreds of miles to access shipping routes to the European Union.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Stocks Rise Led by Hong Kong; Dollar Holds Drop: Markets WrapAsian stocks climbed Thursday after positive vaccine developments and U.S. data tempered concern over a jump in coronavirus cases. Treasuries and the dollar held losses.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Tesla Overtakes Toyota as the World’s Most Valuable AutomakerTesla Inc. displaced Toyota Motor Corp. as the world’s most valuable automaker, underscoring investor enthusiasm for a company trying to transform an industry that’s relied on internal combustion engines for more than 130 years.
Source: dailymaverick - 🏆 3. / 84 Read more »