RENTALS NOW CHARGED IN FOREIGN CURRENCY

MASVINGO- As the economic meltdown continues, landlords and property owners in Masvingo have resorted to charging rentals in foreign currency. Some tenants in the CBD and residential areas in Masvingo are now paying their monthly rentals in either the South African Rand or the United States Dollar. Office space and residential properties are said to be paid for in foreign currency.
A small business owner in the City who rents two offices revealed that the property owner had asked for rentals to be paid in Rand. He said they have to pay R80 for each office they occupy. He also said they have to pay their rates in forex although they know that the landlord pays the council in local currency. ‘We have been asked to pay R20 for our water and electricity’, said the businessman who refused to give his name for fear of eviction. ‘The situation is even worse in Runyararo where I have to pay R100 per room”, he added. The business man said he has to fork out R400 for the four rooms he is renting plus the R180 for his office rental and rates.
Wezhira spoke to Mr Mutambasere, City Treasurer for Masvingo, who said the City fathers had no knowledge of anyone paying rates in foreign currency. “All our charges are in local currency and all payments are in local Zimbabwe dollar”’ he added.
Another business man in Rujeko B says he also has to pay R100 per month as rental to the property owner who has told them that they can pay in local currency equivalent to the Rand at the prevailing market rate on the day of payment. He also said that their landlord had told them to vacate his premises if they cannot pay. “I cannot afford R10 on my daily takings sometimes. How then do I get R100 and still have to run this small video shop? You have to know that there is no power almost everyday and my line of business has been affected”, moaned the man who also refused to give his name for fear of eviction.
A property owner who is charging in forex said he had no option since the local currency “had become worthless.” He said that charging in forex was a way to cushion himself against the ever rising inflation rate. “This hyper-inflationary period means that our currency cannot be used. I have no other way but to charge forex which I can then save. You cannot have any savings in Zim dollar,” said the property owner who did not want to be named
Other tenants in Rujeko revealed a more shocking way of paying their monthly rentals. Some landlords are now asking for basic commodities as rental payment. A woman who preferred anonymity said she has to give her landlord 2 litres cooking oil, 2 bars of washing soap and 4 kilograms of sugar for every room I rent. “I have been forced to use one room with my two sons. I have nowhere else to go”, said the single parent of two. Her sons are aged 18 and 21.
Another woman from Rujeko said her landlord asked her to pay R100 per room in May. “I cannot afford to buy a R100 on my salary. I am just a sales representative in a small business. I cannot go anywhere else because the issue of paying rentals in forex seems to be the norm nowadays”, she said.
Unconfirmed reports suggest that even pre-schools have joined the ‘forex club’,charging the fees in Rand.
Contacted for comment, police at Masvingo Central referred all queries to Harare. Police Assistant Commissioner Wayne Bvudzijena said it was illegal to charge in forex. “It is a criminal offence to charge rentals in foreign currency. Anyone being charged in forex should report to the police and we will investigate and set traps to catch such people,” said Assistant commissioner Bvudzijena.
Assistant Commissioner said there was however no law prohibiting barter trade for those that are charging groceries and other basic commodities.