The word rent conjures up nightmares for many Saudis and expatriates alike. For both are suffering from the skyrocketing rents. What is all the more galling is that they have to suffer in silence while dancing to the landlords' whims and fancies. Every year when it is time to renew their rental agreement, the duel between the lessor and lessee is similar, be it between Saudis or between Saudis and non-Saudis. The Saudi owner is the eventual winner. He dictates and the others — after initial pleas, request and sometimes abject begging — fall in line or just leave the place for yet another victim. With no regulations governing rents, it is open season on the tenants. Landlords on their own set the pricing, and some do that without giving tenants an advance notice. The increase invariably is a slam-dunk that leaves the occupants dazed. Landlords just put a figure to the annual ritual and present it as a fait accompli to the tenants — with the increase being either SR2,000, SR4,000, SR5,000 or even by SR10,000 annually — just because the owner feels like it. This would not have been possible if there are rules and regulations that govern and control this sector to protect both tenants and landlords. Unlike in other neighboring countries, which have an upward limit of 5 percent rental hike annually, here in Saudi Arabia it is always up to the landlord to set any price he or she wants. The society is full of tenants sob stories — especially of forced evictions, sudden hike in rents that caused families to be uprooted from a familiar setting, and on occasions harassment even after meeting the demand because another fellow-victim is willing to pay more. But these stories are not one-sided, there are instances when the landlords are taken for a ride by the tenants by not paying on time, sometime leaving without paying and on occasions refusing to leave and not paying too. In addition there are those who vandalize the property just because it is not theirs. To relive an example, an expatriate friend of mine was forced to move to south Jeddah because he could not afford the new rent set by his owner. The increase was by SR6,000 in one go. The steep increase proved something beyond his means. Even if he worked two jobs, which is not possible in current times, he would be just able to maintain his family and also afford the rent. But what guarantee is there that the owner would not lump him with another massive dose next year. The rent hike also threw his budget off, and he was left with no other option but to move to a cheaper neighborhood. Another case was that of a Saudi friend who had to quit the Al-Nuzha neighborhood because his landlord hiked his rent from SR30,000 a year to SR45,000. Shocked at this decision he tried to negotiate with the female building owner. She simply told him to leave if he could not afford the price. Her justification was “rents are rising everywhere and therefore I will increase. This is the market price now.” In one swift blow, the family was uprooted and moved to east Jeddah, far from his work, far from his children school and in an old house that too could move out of his price range in the future. These seem to be the stories of many a Saudi or expatriate alike. Despite the growing clamor for a stop to the rental hikes, there is no evidence of the price hitting the ceiling yet. Ask any Saudi or expatriate their rental experience and 90 percent of them will talk about the pain and suffering they endure with the rent price shooting to the sky. What I cannot understand is why the concerned authorities are not taking steps to protect this very important sector. By the constant complaints we hear, the only thing certain is that majority of Saudis and expatriates cannot afford the rent increase, but bear the burden because they need a roof over their head. What other solution do they have, but to live under bridges or seek financial aid from charity organizations. In that event would all get aid? The Saudi rent market is totally unorganized. It is about time that regulators get their act together and set rules for this sector. The rules and regulations should not give the landlord the freedom to increase his rent based on his mood of the day. The rules should also specify the percentage of yearly hikes, provide additional protection and remedial provisions for tenants, treat landlord fairly and eliminate the greed element to make quick money at the expense and pain and suffering of poor Saudis and expatriates alike. I don't think that it is difficult or unfair to set an upper-limit annual rise of 5 or 7 percent. A systematic and gradual increase or advance rent hike will help tenants to expect what is coming. They can plan their next move — literally. Regulators should classify each neighborhood within a price range so prices will not vary that much. Price should be linked with the age of the building. The older the building, the cheaper the price is. In addition they can set a time for the life of a building — maximum of 20 years so that the owner can benefit from the newer building after that period. It will be safer for tenants, too. The irony is that both the Saudis and expatriates are sailing downriver, with the owners holding the paddle. For majority of Saudis do not own homes and the expatriates cannot own homes, so it is sixes for one and half a dozen for the other, with the owner reaping the riches. To bring some sense into this chaotic upward graph, the arbitrary rent pricing should stop. This can be done by authorities taking swift and just action. — The writer can be contacted at [email protected]
