Unrest: Rates relief available for severely damaged property

There’s a prospect of some aid for property house owners who suffered extreme harm to properties within the latest unrest in KwaZulu-Natal (KZN) and Gauteng, as municipalities give impact to authorized provisions by adjusting the valuations of affected properties.

Such valuations kind the idea for the calculation of property charges payable to native authorities.

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The Johannesburg and eThekwini metro councils have already invited affected house owners to furnish them with the related element.

In response to Peet du Plessis, president of the Chartered Institute of Authorities Finance, Audit and Threat Officers (Cigfaro), nearly the entire greater than 40 native municipalities and a minimum of the opposite two metro councils in Gauteng (Metropolis of Ekurhuleni and Metropolis of Tshwane) are additionally anticipated to publish supplementary valuation rolls with adjusted valuations for affected properties.

Over 200 Shoprite group stores looted in last week’s unrest
The scale of the destruction

Billions in harm

Du Plessis, who can also be head of income on the eThekwini metro in Durban, estimates the income affect on that council to quantity to as a lot as R1 billion. Its budgeted income for this fiscal 12 months is presently about R54 billion.

The South African Property Homeowners Affiliation (Sapoa) mentioned on July 14 that about 100 buying centres in KwaZulu-Natal have been both burnt or severely broken, as have been a number of massive distribution centres in particularly the Durban space.

This got here after violent protests and looting adopted for days after former president Jacob Zuma was arrested and jailed for contempt of courtroom. Greater than 300 folks died.

Gauteng premier David Makhura on Friday (July 30) acknowledged that 30 buying centres within the province have been affected by looting within the townships of Ekurhuleni and Johannesburg, areas in Tshwane, one space within the West Rand, and two areas in Sedibeng.

Some listed property corporations additionally reported harm to properties in Mpumalanga.

Learn: Watercrest Mall and City View are Growthpoint’s worst-hit properties in KZN

Municipal income affect

Du Plessis says the affect on municipal income will rely upon the charges contribution of the broken properties. “In Eshowe for instance, there is just one buying centre and it has been utterly destroyed,” he says. It could have a big affect on the income of that municipality.

Some funds will nonetheless change into accessible after KZN Premier Sihle Zikalala lately declared the province a catastrophe space and municipalities hope the funds will probably be utilised to help them. The municipalities will nonetheless have to arrange adjustment budgets in gentle of the decrease anticipated income and altered spending priorities.

Ben Espach, director for valuations at Charges Watch, says each Johannesburg and eThekwini have invited affected house owners to contact the metros to have their properties revalued.


In its discover the Joburg metro clearly states that it’s structural harm that may set off a reassessment and it is going to be knowledgeable by the extent of the harm and the way lengthy it would take to restore.

After the repairs have been accomplished, the property will as soon as once more be revalued.

Espach says the Native Authorities: Municipal Property Charges Act locations an obligation on municipalities to regulate property valuations every time there’s a important improve or lower in worth for causes aside from mere modified market situations.

Property house owners suggested to be proactive

Even the place a municipality fails to ask submissions, Espach advises house owners of affected properties to inform their native authorities of the date when the harm occurred, the estimated restore value in addition to an estimate of how lengthy it would take.

He says the changes within the valuation roll will be affected as quickly as they’re entered into the municipal monetary system, due to a latest legislative modification. If the proprietor is sad with the brand new worth, they’ll lodge an objection.

Homeowners are suggested to proceed with their charges funds till the valuations have been adjusted to keep away from the danger of different providers like electrical energy being disconnected.

As soon as the adjustment has been made, the municipality will credit score the charges account retrospectively to the date of the occasion.

If that’s inconceivable, Espach advises house owners to interact senior officers on the related municipality to make an interim association.


Municipal guide advocate Werner Zybrands says it will probably take as much as two years to rebuild a buying centre that suffered structural harm.

It might be unfair to count on the house owners to maintain on paying charges throughout that interval on the similar stage as earlier than.

He says the place harm was restricted to shopfronts and cabinets, repairs will be executed slightly shortly and it mustn’t have a fabric affect on the valuation and subsequently on municipal income.

Municipalities will nonetheless do properly to point out some goodwill by exempting affected property house owners for a month or two or deferring their funds till their operations are as soon as once more up and operating, he says.

Hearken to Simon Forehead’s interview with Visio Fund Administration property director Mike Flax in this MoneywebNOW podcast (or learn the transcript here):

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