Business Park tenants lament rent increase

Some tenants in Kwa-Thema Business Park are concerned about the metro’s rental increase. They claim the rent varies from R650 to R4 200 monthly for different-sized offices.

The tenants in the larger offices already consider this difference in rent an issue of contention.

Recently, the tenants received notice of the rental increase. They claim the new contracts raise their rent by more than 10%.

They believe the increase is steep.

“The initial rent determination was based on the existing municipal tariffs.

“It should be noted that the tenants moved in soon after completion of the first phase before the official valuation because the business park had not yet been fully completed, with phase two going through construction at the time,” explained the metro’s spokesperson, Zweli Dlamini.

He said the rental escalation is a factor adjustment of 5% on the existing rate per annum.

When asked if they had considered whether the entrepreneurs could afford this, Dlamini said the rental tariffs get calculated based on generating sufficient revenue to ensure the metro provides a sustainable service.

“This means tariffs must accurately reflect the costs incurred in providing a service.

“These rental rates are based on the valuation reports commissioned by the city, cost recovery rates and therefore not on the commercial rates,” he explained.

Dlamini said Kwa-Thema Business Park’s targeted tenants for the city must be SA citizens with valid IDs issued by Home Affairs.

“The parks are an equal opportunity platform for the citizen, irrespective of gender and age, especially those residing in the park’s immediate surroundings.

“These minimum requirements are considered: Valid RSA ID copy(ies) for the business owner(s), proof of registration with the Companies and Intellectual Property Commission (CIPC), a valid SARS tax clearance certificate, a company profile, proof of address and a Central Supplier Database (CSD) report.”

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