Qatar Real Estate News
Tenants relieved over the announcement of new rent law
The new rent law has brought about immense happiness to the tenants on the one hand, while has invited the wrath of a few landlords, on the other.
The landlords are upset by the fact that the state plans to levy a one percent rent contract registration charges from the owners. The landlords are said to have been seeing it as an indirect tax.
But tenants say that the new law has a human face, and would bring down the percentage by which a landlord can increase the rent.
A businessman, Al Jefairi, says “It is a wonderful piece of legislation, as the tenants have more rights than in the previous law. The landlord can only dictate terms only to a new tenant, as he could refuse to sign the contract, unless, the condition he dictates are included in the contract.”
Talking of criticism from the end of landlords, he continued “They are critical of registration charges. Landlords say that this will be an additional financial burden on them. This is the first time such charges are being enforced in the country. Another feature that the landlords are upset about, is, the mandatory regular maintenance work that they would have to carry out on rented properties.”
As per talks in the community, the Cabinet may permit landlords to increase rents by seven percent every two years. The new legislation authorizes the cabinet to make a decision soon, on the issue of rent increase.
Al Jefairi says, from the point of view of the property owners, even this is not fair, keeping in mind the cost of spiraling building materials, which in turn, is contributing to overall inflation. However, people at large, and not property owners alone are, hit hard by inflation and increasing rents have been the major contributor to the price increase.
The previous law, as told by landlords had permitted them to increase rents by 10 percent, helping them to keep pace with mounting inflation, pointed out Al Jefairi. However, tenants say that when the previous law was in place, nearly all landlords have increased rents, although such an increase was only optional according to the law.
However, tenants are happy that the new legislation is protective of the rights of tenants, and the long-standing tenants are most benefitted out of it.
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