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

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