JEDDAH, Jul 24 (Arab News): Saudi landlords are often prejudiced when it comes to renting out apartments and prefer expatriates over Saudis who have poor reputation in paying rent on time.
According to statistics from the Jeddah court, there are 7,000 pending cases at the court relating to Saudis failing to pay their rent. The problem is so huge that the Real Estate Committee at the Jeddah Chamber for Commerce and Industry (JCCI) has recommended setting up a payment system that would lead to banks taking rent amount from a person’s salary each month.
“It is obvious that many landlords opt not to rent apartments to Saudis due to the problems associated with them. I refuse to rent apartments to Saudis. It’s true that the majority create problems. They often refuse to pay their rent,” said Abdulghani Al-Sabbagh, a landlord and former member of the Real Estate Committee at the JCCI.
“Most of them only pay during the first year and then start delaying payments after that. They also ignore other rules relating to parking space, paying for water and stuff like that,” he said.
“Most of them suddenly disappear without notice and without paying outstanding dues. They leave behind their furniture and in such cases we have no choice but to complain to the police. This usually takes a long time and we’re not allowed to open the apartments without the police. Renovating apartments for a new tenant and repairing the damage also costs money,” he added.
Al-Sabbagh said it takes a long time for courts to settle cases and this is why most landlords avoid renting out to Saudis.
Awad Al-Dowsi, another member of the Real Estate Committee at the JCCI, said there is a need to implement the JCCI’s suggestion of paying rents through banks. “This is a widespread problem among Saudis. Tenants are not the victims; it is the landlords who are. The JCCI’s recommendation would ensure both landlords and tenants’ interests are looked after,” said Al-Dowsi.
“I owned 12 buildings but stopped renting to Saudis. I prefer expatriates who are committed to paying their rent. When we ask expatriate to pay monthly fees, they agree. Saudis prefer to pay their rents every six months. Most of them then also fail to do that since they do not know how to plan their finances,” he said.
Khalid Jamjoom, former chairman of the Real Estate Committee at the JCCI, and CEO of SEDCO Real Estate Development, prefers not to discriminate against Saudis.
“It is well-known that Saudis refuse to pay extra fees in buildings. This problem is common among Saudis but it also exists among expatriates, especially those who are poor,” he said.
“Landlords prefer to rent out to expatriates who are committed to pay because they fear the courts or fear being deported if they create problems,” said Jamjoom, adding that he believes the problem could be resolved with the issuing of a law that defends the rights of both tenants and landlords.
“Although this is a widespread problem, there are still no proper rental laws. Landlords can solve their problems by complaining to the municipality or police. However, it is unfortunate that these issues take a long time to resolve,” said Saudi lawyer Abdullah Niazi.
“Both landlords and tenants need to be governed by laws that protect their rights. All these problems can be addressed quickly with the establishment of executive courts that implement the rules within limited time periods,” he added.