Proposals to regulate the relationship between tenant and landlord
Abdullah Muhammad al-Aziri
<A proposal for a law to regulate the relationship between tenant and landlord in Saudi Arabia regarding the value of rent may include several provisions aimed at balancing the rights of both parties, protecting the tenant from unjustified increase in rents and protecting the rights of the landlord in his investments. There are some basic ideas that could be included in this proposal:
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Setting rent increase limits
A clear mechanism for the annual rent increase should be defined based on specific indicators such as the rate of inflation or the average rental prices in the area. The annual rent increase can be capped (e.g. 5-10% per year), with a specific period (e.g. the rent will not increase during the contract period until 12 months after signing).
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Specify the mechanism for the increase
The decision to increase the rent must be communicated to the tenant a sufficient amount of time (e.g. 90 days) before the beginning of the year or the end of the contract. The percentage increase is determined based on an analytical study of local markets.
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Protecting tenants from unfair increases
The Rent Increase Calculator in areas that benefit tenants provides information on how much of a legal rent increase landlords can apply
Protect tenants from unfair rent increases by setting clear criteria for areas where rent can be increased based on local market performance.
4- Tax relief and incentives
Provide tax breaks or incentives for landlords who follow fair rent laws and agree to set rents at reasonable rates, as well as for tenants who honor the terms of their contracts.
These provisions are intended to provide tax relief and incentives for landlords who follow fair rent laws and agree to set rents at reasonable rates, as well as for tenants who honor the terms of their contracts. These provisions aim to create a transparent and balanced regulatory environment that guarantees the rights of all parties and reduces any conflicts or grievances that may occur in the real estate market.
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