'Ask Legal Neil' - How do I find out if a property is rent-controlled?

We have the third in our series of questions for 'Ask Legal Neil'. Neil this month discusses rent control here in Bermuda.

Q: How do I find out if a property is rent-controlled?

Rent control essentially refers to laws mandating the maximum rent that landlords may charge tenants. 

Often buyers and residents – particularly tenants - are not always clear about rent control here in Bermuda. 

Rent-controlled property in Bermuda applies to residential tenancies of dwellings with an annual rental value (“ARV”) threshold of $27,000 or less.

You can find the ARV of a property at the Land Valuation Department’s website at www.landvaluation.bm.

Other points to consider: 

Contact the Rent Commissioner’s office (www.gov.bm) to find out if a controlled rent has ever been set for a property – personnel there are very approachable.

If the property has never been let before, the first rental is not subject to Rent control. Subsequent lets should not be at a rental exceeding that of the first let unless approved by the Rent Commissioner.

If purchasing a home with a rental unit, get copies of previous lease agreements to find out whether the rent charged was in compliance; non-compliance can be expensive for the owner and possibly those who buy the property from the owner.

Persons looking to purchase a home can deal with potential liabilities by way of a property price reduction.

Neil Molyneux is a member of the Property Practice Group at Appleby (Bermuda) Limited.

The above content should not be used as a substitute for professional legal advice.  Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.

If you have any questions you would like to ask Neil - on any and all legal matters regarding Bermuda property, please direct your questions to sales@propertyskipper.com

Leave A Comment

Please note that Property Skipper will only use the above data to contact you accordingly. By submitting this form, you confirm that you agree to our website terms of use, our privacy policy and consent to cookies being stored on your computer.