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Standardize leasing agreements to protect both landlords and tenants
Published in The Saudi Gazette on 09 - 12 - 2016

Some 22 percent of cases being reviewed by courts involve landlords and tenants. This is a high percentage, which might discourage investors from venturing into real estate projects. A large amount of time is expended dealing with these cases. A study recently published by Al-Madinah daily show that most landlord-tenant cases end up in the favor of landlords. Landlords usually get paid in the end, even if it is more than two years after cases are initiated.
These disputes would not have occurred if there was a standard lease agreement that regulated the landlord-tenant relationship, protected the rights of both parties and preventing one party from taking advantage of the other. Such a lease would make it easier for the judge to decide cases involving both parties. The obligations of both parties should be set out clearly in the unified lease.
The leases used in France are very detailed and only signed after both parties have met certain conditions. For example, tenants are required to provide a letter from their employer stating that the employer will deduct money from their salary if they fail to pay the rent on time. Tenants are also required to provide a bank statement showing that they are financially capable. Finally, the tenant and the landlord meet and discuss everything in detail after which the landlord makes a decision.
These procedures are not as complicated as they seem. They save courts a lot of time. The current leasing agreement documents used by landlords all over the country are not detailed enough and seem to miss important points. That is why judges have to spend a lot of time looking into cases before passing judgments.


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