Shop rental regulated by law

Government control over rental markets goes ahead. Since November 2011, Venezuelan authorities have the power to set the rental rate of houses. Now, they are to set the rental rate of stores.

The National Assembly s Committee on Administration and Services drafted a working paper of the draft law on Regulation and Control of Real Estate Leasing for Commercial Purposes. The bill states that the stores located in malls, kiosks, stands, buildings for educational purposes, buildings for heath care purposes, warehouses, parking lots, offices and other commercial premises will be regulated.

The bill, like the Law on Housing Rental, provides for the establishment of a new agency -the National Directorate of Real Estate Leasing for Commercial Purposes. This agency will estimate the rentals to be charged by the owners of the commercial premises.

The rents will be "fair" and they will be estimated according to an index that will be prepared by the Central Bank of Venezuela (BCV). The real estate value will be determined by real estate assessors and valuators of the new directorate.

In addition to the rents, the government will set the terms and conditions of lease agreements.

Under the draft law, the agreements will be effective for two years and they will be revised every two years.

marmas@eluniversal.com