The non-governmental organisation Moviment Graffitti said that there was a dire need for a framework on rents which would include indices on the rental value established by the Government and would determine the value of a residence depending on the locality or zone it is situated in. This would mean that the price would be established by the Government while the landlord could only increase up to a maximum of 10% on the established price. On the other hand, the tenants would have an idea on the type of prices they were expected to pay.
Andre Callus from Moviment Graffitti was reacting to the recently published White Paper which is proposing amendments to the rental law during a programme aired on RTK 103FM.
Callus said that the rental market should be regulated. He also commented on whether the Government should intervene in the market. He explained that this would be a legal framework on which rental contracts would be based in the rental market, something which one finds in the majority of European markets.
The activist compared the current situation of the rental market to a jungle saying that people were living in precarious conditions and a constant uncertainty that they would end up homeless. He spoke of situations whereby families were being forced to look for new homes every six months due to the hike in rents or because the landlord opts not to renew the contract. Callus reiterated on the need to have contracts as per law saying that currently the market was completely unregulated.
Callus said that he viewed the White Paper as a positive step forward since it recognized the shortcomings in the sector. He then referred to the minimum amount a contract may be valid for saying that the organisation favored a minimum of three years.
According to Callus, the proposed legislation incentives long-term rent contracts saying that after the incentives proposed, the landlord would pay less in tax and the tenant would be able to rent an apartment for a defined time period. However the rent could still be increased according to an established rate, such as 4% per annum.
He explained that if the increase in rent could be predicted, than rents would be more affordable.