05 October 2013

How much rent is the right amount?

Council owns many properties that it  leases to the community. Council are currently grappling with how much we should be charging each of our tenants. up until now the rent has been calculated at a commercial rate and then discounts applied for being local, involving local people, being a not for profit organisation, etc. this method has been raised many anomalies recently and many lessees have requested that they can afford less and less. There is then the position as to why some should get the use of a property for almost nothing and others have to pay market rates.  The most contentious of these in recent years was a scouting group not being prepared to pay $1000 a year for exclusive use of  a property.
As an example Tennis SA currently pay $7,729 pa, Millswood Croquet pay  $1,036 pa and Fairmont Tennis  pay $1,625 pa.
The question is what is fair and equitable? Everytime Council reduces the lease fees of a tenant  everyone else in Unley is effectively paying the difference.
Staff are working on a scheme that they feel will give us fairer and more equitable rates that will be brought to Council for a decision in the near future.

No comments:

Post a Comment