Gulf Daily News  

Bahrain, May 19: HUNDREDS of families are furious after learning their rents are being raised by as much as 65 per cent.

They are all tenants living in Saar and Budaiya properties owned by one of Bahrain's major developers, the Fahad bin Abdul Rehman Algosaibi Company.

The firm started informing its tenants last month that it would be driving up rents in that area, where the majority of its properties are located.

It confirmed yesterday that it would send similar notices to other tenants three months before their leases expire - claiming its rates are much lower than the market rate, which is being driven up by inflation.

The company owns more than 20 properties with 364 housing units in Bahrain, with rents ranging from BD750 to BD1,300.

However, tenants say the rent increases could force them out of homes they have lived in for years.

"All tenants are shocked by this sharp rise," said one of them, who asked to remain anonymous.

"I was shocked when I received the letter, and thought I was dreaming.

"There is no way I can afford my new rent, which has been increased by more than BD350.

"I know about inflation and that rents have been going up everywhere, but definitely not this much.

"I have no word to describe how disgusted I feel about this."

Another tenant claimed they had been living in a villa for three years, but claimed that no maintenance had been carried out to justify the increase.

"The maintenance confined to painting the villa every year," they said.

"There are other things that need to be done on this compound like fixing the swimming pool tiles and the children's playground.

"The company keeps promising to do renovations, but that's it - there's hardly any action."

Another tenant said they expected a rent increase at the end of their contract, but added they did not expect such a steep rise.

"We knew that we'll have to pay more rent while renewing the contract, but this is ridiculous," he said.

"The increase is from 20pc to 65pc (depending on the property).

"Many tenants now pay a monthly rent of BD800 for a villa in the Saar compounds, but now they are demanding BD1,300."

Meanwhile, one tenant said many of the properties had been rented by companies on behalf of their employees who are left to pay the bill.

She claimed that her last contract included a clause that stated any rent increase was at the landlord's discretion.

"With the renewal of most of the tenants' leases last year, the landlord has put in a condition that the lease will not be renewed and instead a new contract will be made," she said.

"When the annual contract expired last year, it seemed the company which signed the fresh contract agreed to a rent rise at the discretion of the landlord.

"But now the burden has fallen on us because it will be upon the tenants to pay the extra amount."

However, company property director Sarah Ashoor told the GDN the rent increase was based on renovations to villas and compounds - not a percentage of current fees.

"The increased rent is calculated based on the rate of return and we will be upgrading the present facilities, as well as adding new ones," she said.

"Upon expiration of a lease agreement, it is declared terminated unless renewed.

"In the event of an expired agreement, wherein the tenant would like to stay on, we would require a confirmation in writing accepting the new lease agreement, the new rental rate and terms and conditions."

She said renovations and an overall upgrade to villas and common facilities would be carried out to justify the increase.

"After that, these properties will be available to be rented at new rates with newly drafted contracts," she said.

She also claimed the properties' rents have remained the same for the past 15 years, with no increments until last year.

"The property market prices are continuing to swell in Bahrain and the region," said Ms Ashoor.

"Cost of construction, steel, cement and various other raw materials and labour are skyrocketing.

"This has a major impact on our costs and are mostly inducers that are beyond our control.

"Relative to the market we trust that our tenants will acknowledge that even at these new rates of rent, our rates are far below other proprietors of similar luxury villas in this market.

"At the end of the day, we're a company and not a charity."

Maintenance

She denied tenants' claims that there was no proper maintenance being done.

"We have a fully fledged, round-the-clock call centre and a contract with Almoayyed Contracting Group to manage all electrical and plumbing maintenance," she said.

"In addition, we have a dedicated security contract with Almoayyed Security and our gardens are taken care of by Almoayyed Landscaping and Pools."