A new system to reveal apartment rents and ensure a monthly or quarterly payment strategy is to be introduced before November, said Mohammed Al-Zumai, spokesman for the Housing Ministry.
“The new system, entitled ‘Ijar’, will end traditional methods of leasing out houses. Searching for an apartment with the help of a broker or through the tenant’s personal effort will become a thing of the past,” he said.
Al-Zumai said the new system would be easily accessible and beneficial for users. Apartments for rent are to be listed on its website.
“Through this system, the tenant can check apartment location, descriptions and rents online, then go to the broker’s office, who will proceed with the tenants and the apartment owner,” he said.
However, despite the fact that the system will not regulate rent or stop its increase, Al-Zumaie expected all building owners to compete to register in this new system since it will ensure payment.
“We won’t restrict building owners by imposing rigorous requirements. What we want is to allow the tenant access to a database that reveals prices and then the tenant can decide where to go. If we notice an unreasonably high rent, we may take action,” he said.
He added that after finalizing the new system, the Housing Ministry would include rent payment through the Sadad payment system to ensure the tenants’ commitment to pay the monthly or quarterly fees on time.
“We are now studying the involvement of 13 banks to be included in the Sadad system. These banks will follow a unified process determined by the Housing Ministry in order to ensure the rights of all parties. This will facilitate the payment process in monthly or quarterly installments. This system is applied in many countries worldwide and it has successfully put a stop to any payment problems,” he said.
A building owner, however, cannot be forced to register with the system.
“We won’t force anyone to join our system, but joining the system will help all parties to ensure their rights,” he said.
Cooperative efforts will be made between the Housing Ministry and the Ministry of Commerce and Industry to list all housing brokers and ensure their credibility.
“The Justice Ministry will start cooperating with us to ensure the effectiveness of a system that documents electronic contracts in order to tackle payment problem and deal with the high number of cases of unpaid rents in courts. The Housing Ministry, the Justice Ministry, brokers and tenants will have copies of the contract. This system will help us to implement the judicial statement,” he said.
Due to unreasonably high prices, many tenants have started renting small apartments that have only two or three bedrooms. This has created problems among young couples who have grown accustomed to traditionally big houses.