Matar Al-Shammari Al-Shammari called on landlords and tenants to prolong the duration of the contract; it helps to feel a sense of stability for the tenant, and at the same time the owner will guarantee a financial flow for a longer period, unlike the annual contracts that some landlords deal with to enable them to raise the value of the rent, and Al-Shammari believes from his point of view that this type of contract is not more important than ensuring the financial flow for more than a year, especially with the possibility of not renting the unit at its new price, noting not to throw the blame on landlords or not to return to the average rent.

Al-Shammari said that the landlords are not to blame for not returning to the average rent. He called for the existence of a mechanism that regulates the relationship between the tenant and the landlord regarding the rental price, such as setting a percentage to raise the rent in the lease contract agreed upon by both parties, and this percentage is applied over a period of two years or more, and this percentage varies according to the classification of housing units, and this helps the tenant's commitment to the rental payments.

Al-Shammari explained that the lack of a mechanism that regulates the price policy in rent led to this issue. <In conclusion, real estate expert Matar Al-Shammari told Amlak newspaper: "We hope that the authorities responsible for the rental organization will develop a mechanism to evaluate and classify residential units into categories, equal to the classification in hotels, which are classified as four stars and three stars, and this classification in hotels has contributed to determining the price range for hotels."

Real estate expert Matar Al-Shammari said.

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Aboudi bin Abdullah: Rental index helps in proper pricing

Aboudi bin Abdullah, real estate expert, explained that the General Real Estate Authority provides a rental index service, which helps the landlord and tenant to know the range of prices based on the neighborhood, region and type of property, and this service helps the landlord to price the property appropriately and also gives the tenant the information he needs to choose the right property for him based on this index.

Aboudi bin Abdullah, real estate expert, explained that the General Authority for Real Estate provides a rental index service. Bin Abdullah said that there is an impact of long-term residential rental contracts on family stability, because the standard lease contract is binding on both parties, whether the owner or the tenant, and the reason is that the annual contract may be subject to an increase in demand and vary in the rental price, unlike contracts concluded for three or five years with a fixed or variable rental value agreed upon by both parties, and called on those wishing to rent a residential unit to study suitable offers and seriously consider concluding a contract for more than one year to avoid the issue of varying and increasing the price in case the demand rises when the contract is renewed.

The service helps the lessor to appropriately price the property as well as give the tenant the information he needs to choose the appropriate property based on the index.

Aboudi bin Abdullah believes that the interest rate hike led to an increase in demand for rent and higher prices than before, we are witnessing an accumulation of demand to buy real estate units but waiting for the interest rate change, and applicants tended to rent units instead of buying now, which led to higher prices due to increased demand.

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Abdulrahman Al-Juhani: 4 key elements determine the value of the increase

Real estate enthusiast Abdulrahman Al-Juhani said: The valuation used to determine the rental value can be modified and a higher ceiling of 10%, similar to the stock market index, through several points.

Real estate expert Abdulrahman Al-Juhani said. <He explained that these points include the age of the building, the availability of government services (water, drainage, etc.), proximity and distance from economic services, in addition to the average prices of units in the area. He pointed out that it is possible to achieve family stability, in light of the increase in rental prices, by choosing housing that is commensurate with income, advising that the rent should not exceed 25% of the total monthly income, and stay away from glamor and what he described as "running after a mirage".

On the subject of custom, he explained that these points include the age of the building, the availability of government "water, water and others", proximity and distance from economic services, in addition to the average prices of units in the area. He explained that it is an old custom like other real estate practices, such as setting the amount of mediation at 2.5%, and that the economic prosperity and rapid transformation in the Kingdom at various levels, it is necessary to improve and change this period to suit the plans of feasibility studies for the family budget, especially with the small annual increase in the income of the head of the family and the increase in expenses due to inflationary pressure, and that the increase can be every two years.

Juhani talked about the optimal mechanism for increasing the value of rent, which is not to exceed 10%, and varies according to specific criteria, provided that points are allocated to each building in the «Ejar» platform, through items filled by the lessor, and with the integration of the data of the rest of the ministries with the platform, the rate of increase is determined, stressing that this applies to both residential and commercial sectors.

With the integration of the data of the rest of the ministries with the platform, the rate of increase is determined.

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Saad bin Ibrahim: No perfect valuation to set rents

Saad Bin Ibrahim, a real estate broker, said that there is no ideal valuation used to determine the rental value of the property, pointing out that the determination of the rental value of the property currently depends on the size of the demand for the property or the privileged area in which it is located, as the more pressure and demand on the area, the higher the rental value, and here some see this situation as a result of greed while some consider it as exploiting the available opportunities.

Saad Bin Ibrahim, a real estate broker, said that there is no ideal valuation used to determine the rental value of the property. He explained that family stability is governed by the criteria of real basic needs, and not integrating luxuries within them, or presenting them over real basic needs, and here the idea of awareness appears among people and knowledge of these matters is an important matter in achieving family stability.

The real estate broker pointed out that the prevailing custom depends on what was imported from previous generations, and in the generations before us the prevailing custom was the annual contract, in addition to the point of awareness and education, the offer from real estate owners, and the extent of agreement or agreement between the parties to the contract, for example if a 5-year contract is signed and an agreement to deduct a certain amount.

For example, if a contract is signed for a period of 5 years and an agreement to deduct a certain amount.

Saad bin Ibrahim believes that there cannot be an ideal mechanism to increase the rental period, as some of them may be beneficial to part of society and harmful to the other part, as they may have damage to the level of social security of groups and incite shameful acts, and it is better that people should be made aware of the harm of not knowing the real possibilities of individuals, staying on his possibilities and not raising the ceiling of possibilities by placing them in an imaginary place so that there becomes a large gap between reality and imagination, so the fall is painful the larger the gap between them.

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Nayef Al-Mutairi: Specific percentages should be set to increase the rental value

Al-Mutairi said that the increase in the rental value will undoubtedly affect family stability, as rent is a major financial drain on the head of the family, pointing out that there are many and varied solutions provided by the Ministry of Municipal and Rural Affairs and Housing, and the empowerment of the citizen to housing is one of the most important targets of the Kingdom's Vision 2023, which aims to raise the percentage of Saudi homeownership to 70% by 2023.

Mutairi said that the increase in the rental value will undoubtedly affect family stability. The real estate enthusiast points out that the annual contract is suitable from his point of view for residential contracts for families, but it may be appropriate in special cases for the contract to be for a long period, such as the unit is not usually available or its value suits the tenant and wants to stabilize the price, in this case some may resort to requesting a contract for a period longer than a year, and the majority still prefer annual contracts.

The majority still prefer annual contracts.

<Al-Mutairi said that the rise in prices is one of the thorny issues and needs a regulation aimed at stabilizing prices and not varying greatly in the value of contracts upon renewal, and one of the proposals is to classify units into average, lowest and highest classifications and each classification has a certain percentage of increase, as the lowest classification has a rate of increase that does not exceed 2.5%, the average does not exceed 3% and the highest classification does not exceed 5%, the existence of classifications contributes to determining the price range and helps the tenant to choose the appropriate classification for him. In addition, each classification should have requirements to achieve it, and incentives should be set to raise the quality of rental units for the tenant and motivate landlords to raise the quality of real estate products.

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