Union Asks Landlords To Exempt Rent Of Tenants

Real Estate Brokers Union launched a campaign under the slogan ‘Help your tenants’ which urged real estate owners both individuals or companies to forfeit rents to reduce burdens on their tenants, before they vacate flats which will be costlier in light of the current economic issues the country is facing.

This is also to acknowledge the current conditions that caused many tenants to suffer economically, and in some cases lose their income, reported Al Rai.

The Vice-President of the Real Estate & Brokers Union, Emad Haidar stated that exempting rents of apartments is likely to ensure occupancy while avoiding the real-estate sector being subjected to an additional blow, which would only increase complications.

Pointing to recent decisions by banks, who have postponed loans of citizens and investors between 3 to 6 months due to coronavirus crisis, Haider said that landlords should not pressure tenants and as a temporary relief, should allow them to stay so they are not under pressure to abandon their flats forcibly.

He stated that in time of crisis Kuwaiti people have overcome with mutual support and solidarity, Kuwait has survived in its various crises from risks. Real estate owners should exempt their tenants from rents for 3 months, taking into account the job crisis that has affected a large segment of employees.

To meet their expenses under difficult circumstances, Haider added that real estate companies can collect minimal fees from tenants which is sufficient to cover their cost.

The government decision to allow about 67,000 teachers in the public and private sectors to leave the country with their families after delaying the resumption of the academic year for about 6 months, will affect the real estate sector significantly, with the possibility of emptying a large segment of these apartments. Hence, realtors have to take the initiative to keep their tenants, before it is too late.

The Real estate VP stressed that exempting rents or resorting to reductions until the coronavirus crisis is over is the best way for landlords to maintain occupancy rates of their buildings in the long run as this would discourage tenants from leaving their apartments.

Currently, the real estate sector is already suffering from an oversupply of apartments and as well as a reduced expat population, and without taking steps to exempt or reduce rents, they will incur heavy losses as they may be unable to fill them.

Landlords reported that a large segment of tenants in various regions of Kuwait have already stopped paying March rents due to suspension of their jobs. They expressed their wish that landlords understand the pressures they are subjected to by exempting them from paying their rent temporarily or reducing it.

Tenants have been campaigning to that effect by organizing a petition signed by the building tenants since many companies have been suspended from operations under the anti-coronavirus measures and leaving them without a source of income.

 

SOURRCE : THETIMES

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