In October 2023, the Francistown City Council (FCC) carried out a Ratings Valuation exercise in partnership with a private property firm. Fortunately, I worked as a property inspector on this project, marking my first formal job as a real estate graduate. In January 2024, the Gaborone City Council (GCC) also began its Ratings Valuation exercise, outsourcing the work to multiple private real estate firms. Luck would have it, I got my second job on the GCC Ratings exercise since my contract had ended in Francistown. I had the privilege of working on both of these projects, learning a lot about myself, real estate, and Batswana as a nation and stakeholders in the real estate industry.
If you are a Botswana resident living in either of the two cities, you have probably seen or heard about people taking photos and measurements of houses and buildings. Yes, that was us. Although property inspections are mostly completed, many property owners, landlords, and tenants are still unaware of the exact intention and purpose of this exercise. Therefore, I intend to shed some light on that along with my general experience with this blog post.
Real estate appraisal, property valuation, or land valuation is the process of developing an opinion of value for real property, usually the market value. There are various types of property valuation, so let's define what a Ratings Valuation is. A Ratings Valuation is a valuation conducted to determine the market value of a property, which is used to determine the rates (service levy) that the property owner should pay to the council. The Ratings Valuation is not used for insurance, raising finance, or selling the property. It is solely used to determine the city council rates. The valuation of properties in Botswana is overseen by the recently updated Local Government Act of 2012 and the Townships Act of 1955. According to these Acts, a reassessment must be conducted every five years using the capital value valuation method. The most recent valuation roll for the Gaborone City Council was contracted out in 2008 and put into effect in 2012, which means that many Batswana are unaware of the process.
Being a part of these projects had its ups and downs. On the downside, it was tedious work, with inspectors on their feet from 8 am to 4 pm. Moreover, we weren't always welcomed with a smile when we walked into private property and told people we had come to inspect their homes. One of the most common complaints we received from property owners and tenants alike was that what we were doing was an invasion of privacy. Some property owners even insisted that the council had no right to enter their properties because they had built their homes without any help from the council. Another common concern was that people wanted the council to use the house floor plans that they had submitted instead of sending strangers to their homes.
This resistance was not baseless. Recently, there has been an emerging trend of burglars gaining access to the homes of unsuspecting property owners and tenants by pretending to be representatives of a government agency, commonly the city council. As a result, the public has developed a culture of suspicion and reluctance when it comes to cooperating with so-called council workers without proper official communication and identification beforehand.
Tenants also expressed concerns about the possibility of landlords increasing rentals in response to any hike in property owners' rates by the council. However, such concerns may be unjustified, as property rates do not necessarily impact landlords' rental profits directly. Additionally, tenants raised issues regarding the unhygienic living conditions of their rented properties, which they feel the council should enforce. There is also dissatisfaction among tenants regarding the lack of correlation between the high rental rates they pay and the perceived low quality of properties, leading them to question the council's role in regulating rent. It's important to note that the Botswana rental market operates as a free market, where property owners set their rent rates without interference from the government or any institutions.
Another common sentiment amongst Batswana was the need to understand why the councils intend to review the council rates, whilst the public infrastructure remains in shambles, with roads that are either gravel or riddled with potholes and non-functional streetlights.
Specifically in the Block 3 Gaborone areas, the residents expressed their frustration with the lack of drainage infrastructure, which was evident at the time of our inspection in the area. We found many people's property damaged by recent rains, due to no drainage infrastructure, causing flooding and property damage beyond use, including cars that were submerged in rainwater.
While in the field, I noticed that many Batswana lack confidence in their government. However, most residents still respected the fact that the government has work to do, and they tried their best to make it less difficult for us. Most homeowners and tenants were kind and generous to us. Occasionally, there was a rude tenant here or an unwelcoming property owner there, but the good outweighed the bad.
This brings me to a critical issue that contributed massively to the delay in completing the rating exercise inspections, i.e., communication and information dissemination, or the lack thereof. One would assume that before commencing a project of such magnitude and sensitivity, the city councils would ensure to alert and communicate with the public about their intention, purpose, and procedure of the Ratings Valuation. This would have ensured a smooth and timely execution of the council's agenda. We live in a world where information and communication are swift due to technological advancements. Therefore, by failing to inform and alert the public, the city councils only tarnished their reputation further and made our work harder than it should have been.
Considering that there are two more towns, Lobatse and Selebi Phikwe, where the rating exercise still needs to be done, I suggest that the respective town councils alert residents and property owners well in advance if they do not want to face unnecessary delays and backlash from homeowners.
All in all, being a part of both these projects was a valuable experience. Surprisingly, the only violent resistance we got was from an individual who happened to be a council worker herself, who admitted to being aware of the rating exercise but still chose to be violent and unwelcoming and a gentleman in one of the suburbs of Gaborone, but he was quickly reprimanded by his wife. From navigating the treacherous waters of distrust to basking in the warmth of unexpected kindness, every encounter left an indelible mark on my journey. As the final curtain falls on these rating exercises, I depart with a sense of gratitude for the lessons learned and a fervent hope for a future where understanding triumphs over suspicion, cooperation over conflict, and progress over stagnation.
By Thabani Mswela
Founder and chief editor
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