In a proactive move, real estate agencies in the Eastern Province have imposed new annual water security deposits on tenants; the water security deposit has increased by more than 300% and is refunded upon expiration of the lease. Following the increase in water rates, we have established a mechanism to ensure the bill is paid when the tenant vacates the apartment or residential unit.

Real estate agency owners attributed this move to a statement by the Minister of Water and Electricity, Eng. Abdullah Al-Hussain, regarding the implementation of the new rates at the end of this month. Real estate agents explained that, given the recent occurrence of extremely high bills in areas where the new rates were applied, and after we realized that consumption levels would vary, we are asking tenants to conserve water.

They noted that the 1,000 riyal annual water insurance fee for an apartment is considered modest given the rate hike, explaining that the problem we currently face is tenants’ lack of awareness regarding their water bills and consumption, as the meter is shared among residential units—sometimes numbering more than 24 apartments in a single building— while citizens feel that the amount is too high for them.