MHC adamant on rental hike

Malawi Housing Corporation (MHC) has said it will raise rentals for its houses starting from September 1 this year.

The decision comes weeks after the corporation rescinded its decision to adjust rentals following complaints from tenants that the hike was harsh.

According to a statement issued by MHC, the new rental adjustment has come after consultations with government.
“Following the Ministry of Lands, Housing and Urban Development’s recent direction, the Malawi Housing Corporation undertook an enquiry into the rise of rental costs to its tenants.

“The Chief Executive Officer under the direction of the board has now completed the enquiry and has discussed the outcome with the Ministry of Lands, Housing and Urban Development that the proposed rental adjustment should be staggered,” says the statement.
MHC says in the statement that it has resolved that in adjusting the rentals, there should be a balance that ensures that the rentals are affordable to the tenant whilst the corporation continues to invest and maintain its properties as well as expanding its stock.

The corporation has promised to communicate to each tenant on the hike.

Last month MHC increased the rentals by up to 120% but reversed its decision few days after tenants protested against the increase.

The institution said the hike was necessitated by the cost of operations and sustainability of its functions.

MHC Chief Executive Officer, Eunice Napolo said then that with the present rentals, revenue for a particular house could not be sufficient to maintain the house, arguing that the increase in rentals was necessary for the corporation to continue maintenance works and construction of new houses.