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Regulations as per new rent law
The new rent law, effective since 15th February 2008, had announced that unless Cabinet issues its decision regarding percentage of increase in rent, and the period of validity, no landlord has the right to increase the rent by any amount.
Article 27 of the law also stipulates that unless a tenant intends to discontinue a rental contract, all existing contracts issued until 14th February 2008 will remain valid, provided, the tenant continues to remain in that property.
The law also clarifies that it would be illegal to take a property on rent, and sublet it to others, without written permission from the landlord. It is also illegal for anyone, to take a property on rent from anybody else, other than the landlord himself.
The owners are required to register all existing contracts at the Ministry of Municipal Affairs and Agriculture (MMAA), within a span of one year. Property owners will be required to pay one percent of annual rent amount, in the form of registration charges to the MMAA, which could be subjected to increase in the future. Any delay in registration of agreements would attract a fine of up to 25 percent on the annual rent.
A rental dispute committee is expected to be established at the MMAA, which will be headed by a judge and two other members, nominated by the Minister. The committee will have the right to issue decisions on urgent matters. The public can appeal against its decision, if required, at the specialized court of appeals within 15 days after issuing the decision.
Until the committee is formed, all rents and related disputes will be referred to the court. The cases involving rent and related disputes that are already being heard in various courts, currently, will be continued in the same manner.
A key feature of the new regulation is that the unit which is being rented should have basic amenities, as specified in the rent contract. In case such basic amenities mentioned in the contract are not provided in the property, the tenant has the right to cancel the contract or reduce the rent.
The responsibility of regular maintenance work will be that of the owner. In case the owner delays the maintenance of a commercial or residential property, the tenant is given the right to approach the dispute committee established at the MMAA (Ministry of Municipal Affairs and Agriculture), and seek approval to carry out the maintenance work. The cost incurred could be deducted from the rent.
A tenant should keep the property in the same condition, as it was at the time of renting out to him, and in case of non-adherence to this rule, the owner has the right to demand that the property be returned in the same condition as it had been, at the time of renting-out.
Posted on 20/2/2008
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