Residents in the Kingdom have long expressed their need for the proper management of the residential buildings in which they reside.

Neither landlords nor leasers are willing to take responsibility of property-related problems, waste management or water shortages. In addition, there is no authority monitoring rent hikes imposed by property owners.

“Building owners usually exit the scene once they’ve sold their properties. New owners should form a committee to run these buildings. Some have been found to form a committee consisting of building owners or their representatives,” said Khalid Asad Jamjoom, CEO of SEDCO Development and former chairman of the Real Estate and Urban Development Committee at the Jeddah Chamber of Commerce and Industry (JCCI).

Jamjoom adds that no one likes to pay for maintenance in this part of the world.

“Even committee members try to escape paying dues. It would be very difficult to enforce new rules stipulating that owners pay repair and maintenance costs,” he said.

“Everybody knows that failure to pay rent would normally result in not being allowed to enter the building or put up the apartment for sale. As long as that is not enforceable, no one cares,” said Jamjoom.

Meanwhile, several residents have always complained of extremely high rents despite a lack of maintenance and services.

“This is a free economy,” said Jamjoom. “Therefore, it is not easy to enforce a system and tell property owners they cannot increase the rent beyond a certain point. I’m not saying it is impossible, but it is difficult. As long as we enforce a rule on rent prices, then the quality of maintenance will suffer.”

Jamjoom explains that buildings require a minimum amount for operating just like any other establishment.

“Both landlords and tenants always try to bargain for a better price. No one likes to pay the asking price,” said Jamjoom. “We don’t even want to pay for maintenance and we want the owner of the building to take care of everything. If that is the case, then he will definitely increase the rent. He sure didn’t construct the building for charity. He, too, intends to make money.”

“If I cannot afford to live in a decent apartment, that doesn’t mean the apartment is dissatisfactory. It could mean that my income is way below the average and that I need to do something about my job. But you cannot expect people to sympathize with me and give me an apartment worth SR50,000 for SR10,000 only because I’m not making much money. Everybody is suffering high rents, but there are owners who are also suffering from people who are not paying enough.”

There are no clear laws governing the establishment of property management or residential associations that set rules to protect tenants.

Jamjoom says that prices would only decline if there is sufficient supply. “Property owners are exploiting the supply-demand imbalance and this problem will always remain,” he said.




“Perhaps rents will fall in a year or two after new complexes and buildings are built. The government is taking a keen interest in providing houses. Enforcing a law to control rents will only stop development,” said Jamjoom.