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[nomad soul]

New law to protect rights of tenants and landlords
By Laura Bashraheel, Saudi Gazette | 10 June 2012
(Source: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=20120610126444)

JEDDAH � A new rental law seeking to curb nonpayment of rent will soon be introduced by the Saudi Credit Bureau (SIMAH) and is designed to protect the rights of both tenants and landlords.

The law, which requires landlords to enroll in a system that keeps a history of tenants� rent payment, allows property owners to run background checks and identify tenants with bad rental histories. Landlords have the option of enrolling in the new system, which also requires them to charge tenants monthly instead of the current common practice of having tenants pay quarterly, semiannually or annually.

If a tenant fails to pay rent for a certain month, this information will be entered into the system. If he continues to fail to pay the rent that he owes, he will be subject to strict measures by SIMAH including difficulty in obtaining personal loans and credit cards. The system, which covers tenants of commercial and residential properties, seeks to solve the numerous problems associated with tenants who fail to pay rent on time while also easing the burden on tenants who, under the current system, often have to pay up to a year�s rent in advance.

The law comes at a time when the real estate market is heavily unregulated and is the first step in protecting the rights of tenants and property owners who are often forced to go to court to force the other party to comply with the terms of a lease. Observers believe that the new system will create an environment where property owners and tenants can exercise their rights freely. The system will encourage investors to venture into the residential units sector knowing that their rights will be protected.

Abdullah Sadaqa, a real estate investor who owns a number of buildings around Jeddah, welcomed the move and said the government has finally taken a step foward.

(End of article)

[veiledsentiments]

Perhaps I read this article too quickly... but... where was the part that protected the tenants. Seemed a bit lopsided to me...

VS

[johnslat]

Dear veiledsentiments,

It IS "lopsided", but the law's intended to "curb non-payment of rent". There is something, though:

" Landlords have the option of enrolling in the new system, which also requires them to charge tenants monthly instead of the current common practice of having tenants pay quarterly, semiannually or annually.
. . . . while also easing the burden on tenants who, under the current system, often have to pay up to a year�s rent in advance. "

Regards,
John