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Property owners bleed city council
Municipal Reporter
HARARE City Council is losing vast sums of money monthly to people who have clandestinely converted their residential properties into business premises.
A survey by The Herald over the past week has shown that many businesses operating in residential areas did not register the change of use with council and were still paying residential rates.
Residents in high-density suburbs pay US$14,78 in rates while commercial properties are charged US$30.
Commercial properties in suburbs like Mabelreign, Glen Lorne, Highlands, Hillside and Eastlea pay between US$150 and US$180 per month.
The amounts in these suburbs differ according to land size, zones, improvements like swimming pools and additional structures, and the property’s valuation.
Owners of residential properties in the same suburbs pay between US$28 and US$60 in rates excluding water, refuse and electricity charges which are also billed according to land zones.
Commercial entities pay higher rates, water, sewer and refuse collection fees because the properties are used for profit.
The higher fees are used to subsidise services for residential properties as the latter do not generate income.
However, it has emerged that most businesses are paying residential charges.
The money lost could be used for service delivery and the city would not have to borrow as
much as it presently does.
The city says well over 50 percent of residential properties have been converted into offices, warehouses, hair salons, eateries and other business ventures without approval.
A survey by this paper yesterday along Londonberry Road in Eastlea showed that the majority of houses were converted into offices without council’s approval.
Out of the 10 properties visited none of them displayed change of use permits from the city or had any paperwork on display to prove they were legal entities.
Tenants in some of the offices produced city bills showing they had previously been fined for illegal conversions, while others confessed their applications had been dishonoured but they still went ahead to open businesses.
A woman leasing her house to an environmental NGO in the same road said council asked her to pay US$1 000 for a conversion permit.
"The officers told me there was no guarantee though that my application would sail through," she said.
In a section of Belvedere, it was found that of 10 businesses visited at random, only three were prepared to display proof of conversion approval.
Some registered businesses have not renewed their operating licences thus denying the city revenue.
According to city by-laws, one is supposed to notify neighbours of the change of use and invite objections before applying to the city for a special permit.
This directive has largely been ignored and properties have been illegally converted.
The suburbs with the highest concentration of businesses are the Avenues, Eastlea, Belvedere, Milton Park, Hillside and Belgravia, among others.
This has also impacted negatively on people seeking residential accommodation as they cannot compete with businesses on rental charges.
Last week city spokesperson Mr Leslie Gwindi said they had engaged the police to assist in dealing with the problem.
He could not say how much revenue was being lost.
"The blitz will accord us an opportunity to update our databases and determine who should be paying what.
"We urge all unlicensed businesses to go to Rowan Martin Building and register to avoid closures and arrests," he said.
Companies and NGOs actively entice property owners to lease out their houses to them.
They offer higher rentals over longer leases than families seeking accommodation. |
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