Officials at the Housing Ministry are to implement a new system allowing tenants to pay rent on a monthly basis. Abdullah Al-Ahmari, head of the real estate appraisal committee at the Jeddah Chamber of Commerce and Industry, said the decision if implemented will make the rent payment system more flexible.
It will make it easier for people to pay rent instead of having to pay large amounts every four or six months.
There are currently three ways to pay rent. Some people pay every four months, some pay every six months while others pay every year.
Al-Ahmari said this can be challenging for tenants on low to medium incomes.
Tenants will have the freedom to opt in or out of the new system and continue on the existing system of yearly contracts. He said investors in this sector are against this decision.
They claim that they will be losing tenants who normally rent on a long-term basis and risk being left with apartments that will be left empty for a long time. Al-Ahmari added: "We aim to serve both tenants and investors. "At the same time, we are hoping to reduce the number of court cases involving the nonpayment of rent."
He is hoping the new real estate system will include rules governing late rent payments and any other disputes between tenants and landlords.
Al-Ahmari added: "We are calling for a rule stipulating that building owners cannot pocket more than a certain percentage of profit.
"We want the services provided to tenants to be in line with the rent paid."
The Saudi Gazette