Numerous Bermuda properties have been subject to rent control for many years. Currently, residential accommodation with an annual rental value (“ARV”) of $22,800, or less, falls under rent control.
Over time, with ARV revaluations and changing rent control thresholds, accommodation can easily fall into and out of rent control. Prior to 1 January 2016, the ARV threshold for rent control was set at $27,000 or less. On that date, the ARV threshold for rent control was lowered to the current level of $22,800. Consequently, additional accommodation escaped rent control from that day forward.
In particular, beware rent set by a previous landlord in breach of rent control. A past breach, even without the knowledge of a current landlord, may subject a current landlord to financial liabilities.
Rent control legislation not only restricts rent, but also provides security of tenure to rent-controlled tenants. This means a court order is required to evict a rent-controlled tenant; but take care as other kinds of tenant also require a court order, before eviction.
