Those who default on their rent payments may soon find themselves in court, forced to make the monthly payments, under a new law that is being drafted. The law, which aims to protect the interests of both landlords and tenants, would address most of the issues both parties face. The law is expected to put an end to the growing cases of rent default by tenants, Arabic business daily, Al-Eqtisadiah, reported yesterday.
Under the new law, defaulting tenants will be ordered to honor their contract with their landlord and make payments regularly. If the tenants, be they individuals or businesses, default on their rent, a notation will be made in the defaulter's credit file making it difficult for them to obtain other rental properties. If they continue to fail to meet their obligations toward their landlords, they could, subsequently, be put on a blacklist, and their wages could be garnished.
According to Al-Eqtisadiah, the property rental sector is disorganized, with a majority of property owners handing control of their properties to real estate agents who entrust agents to chase rent defaulters.
"There is also no effective mechanism to protect the rights of tenants, and therefore, they are forced to meet even the expenses for maintenance works at their residential apartments," the paper cited a source as saying. "There were complaints from many tenants that they are victims due to the violation of the provisions in the rent contract by landlords. Many tenants are accusing landlords of unjustifiably increasing their rents, taking advantage of the absence of a clear law regulating real estate owners. The new law seeks to address all such problems."
Sources also pointed out that taking action against rent defaulters will reduce the number of cases and thus help reduce pressure on the courts, governorates and police stations.
"Apart from this, the move would have a positive impact on all other tenants in making prompt payment of rent," the daily said. "Once the law and monitoring system is put into effect, property owners can register their properties with the relevant authority. After joining the system, owners of villas, furnished apartments as well as residential, commercial and office buildings should supply the relevant authority with a complete list of tenants and their rental payment terms and history.
New law on house rents in the offing
