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New apartment owners charge excessive rents in Kuwait

September 7th, 2010 Leave a comment Go to comments

Tenants in Kuwait are in torn between paying high rents and providing for their families|Kuwait: Rent has always taken up the largest chunk of the monthly budget of expatriates in Kuwait and many workers prefer to sign contracts with companies that provide them with accommodation.

Employees who are provided company accommodation manage to save far more than those who have to organize their own accommodation.

Fintas, Riggae, Fahaheel and Mangaf are the most common areas where company accommodation is provided because of low rent. The companies provide transportation and even if transportations is provided by the employers, the total cost works out lower than providing accommodation in Salmiya, Hawalli, Maidan Hawalli and Kuwait City.

Not only do the expatriates who have to provide their own accommodation, but local employers also disapprove of the soaring rents of new buildings constructed that have replaced long-standing structures.

The rent of two bedroom apartments in Salmiya has increased by fifty to hundred percent and the new rent does not include amenities such as water and electricity, telephone, satellite television, maintenance and the caretaker fee. The caretakers have been reported to harass residents they are not paid 5 Kuwaiti dinars – KD 10 every month.

“I used to live in the adjacent building and my apartment had three bedrooms, a living room and two restrooms. The rent was KD 145,” Marwa Naim, an expatriate lamented.
She added, “The building was demolished and a two bedroom apartment was constructed with a relatively small kitchen and living room and the rent was raised to KD 250.”

Noora Shamaz, another resident of Kuwait, said, “I can see large tracts of land being developed into housing projects on the way to Fahaheel and new buildings are being erected to replace old structures. I believed the workforce will be increasing in the next few months and Kuwait will need more apartments to accommodate these people.”

She wondered aloud, “But how can the rent get higher every time? Numerous flats are available, but either the building has a new owner or the owners do not seem to respect the conditions stipulated in the contract. Somehow it seems that the rents can change anytime.”

Most expatriates residing in their own apartments often negotiate for housing allowances before signing their contract. If an employee is locally hired, the employer is not obliged to provide accommodation. These expatriates often rent an apartment and eventually sublet the other rooms to minimize the burden on them. There are thousands of such people in Kuwait City where an ordinary single room house is partitioned into four. The occupants have to pay KD 40 per month.

Several tea boys, who receive KD 65, reside in Kuwait City so they do not have to pay for transport. It is a struggle for them to survive in this country and even a greater struggle to save money to send it home. Bachelors often choose not to rent apartments under their own name because the apartments of bachelors are often not maintained well.

Talal Haider, an expatriate, said, “There should be a regulatory board in the country to assess the old buildings and the newly constructed ones. Rents should be based on the condition of the buildings, facilities and amenities offered.”

He added, “Residents should be informed of the department responsible for handling complaints and taking action against imposing high rents and irregularities committed outside the contract, which is signed by both parties and lastly, there should be constant monitoring of buildings by safety engineers to protect residents from any harm, which could be possibly caused by rundown buildings.”

Benjie Molina, another expatriate, noted, “I have nothing against the increase of rents in new buildings, I believe on the right of the owners to impose the ‘take it or leave it policy’, but certain matters should be taken into consideration as well, such as being reasonable about the rent charges based from the physical condition of the building. I have a friend who resides in a flat in Salmiya and the building is almost ready for demolition and yet the owner has increased the rent twice this year already. I was informed before that the owner has the right to increase the rent every five years at the rate of forty per cent, but this is hypothetical and never happens.”

Building owners have to comply with sets of requirements imposed by the government such as bank guarantees and other Municipality permits. As rents soar in the country, the building owners try to recover back the investment the fastest manner and this can only happen if rents are increased. Meanwhile, tenants in Kuwait are in constant balancing act between coping up with higher rents and providing food on the table.

Ricky Laxa – Al Watan


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