If buildings are vacated to get tenants back will be difficult – Tenants stopped paying rents
KUWAIT CITY, Mar 30: Real Estate Brokers Union called on real estate owners whether individuals or companies through a campaign under the slogan “Help your tenants”, and take quick steps in reducing burdens on their tenants, before they witnessed bulk evacuations which will be more costlier in light of the current crisis that the country is experiencing. Taking into account the current conditions that caused the crunch in economic activities that has affected the income of the tenants.
The Vice-President of the Real Estate & Brokers Union, Emad Haidar stated that exempting rents of apartment during the corona crisis due to an economic crisis and to maintain occupancy to avoiding the sector being subjected to an additional blow would only increase complications in operating environment.
Haider said in a statement to Al Rai that since banks have postponed loans of citizens and investors between 3 to 6 months due to corona crisis in response to the repercussions of this crisis, the land lords should not pressure tenants and as a temporary relief should allow them to stay so that they are not under pressure to leave their units forcibly.
He stated that in time of crisis Kuwaiti people have overcome with mutual support and solidarity, Kuwait has survived in its various crises from risks. Real estate owners should exempt their tenants even for 3 months from rents, taking into account the job crisis that has occurred on a large segment of employees.
Haider stated that in worst conditions for real estate companies to meet their operating expenses they can collect minimal fees from tenants which is sufficient to cover their cost.
The government decision to allow about 67,000 teachers in the public and private sectors to leave the country with their families after delaying the resumption of the academic year for about 6 months, will affect the real estate sector significantly, with the possibility of evacuating a large segment of these apartments, in order to avoid incurring rents. Hence it requires an initiative from realtors to keep their tenants, before it is too late.
Real estate stressed that the reluctance of tenants to pay rents would push landlords to take steps to ease their fears of not being able to pay in order to keep tenants of their buildings, noting that exempting rents or resorting to reducing it until the corona crisis is over is the best way for landlords to maintain occupancy rates of their buildings in the long run as this would discourage tenants from evacuating their apartments.
Currently the real estate sector is already suffering from an oversupply and step to exempt or reduce rents will incur heavy losses for them, and they may find their buildings within a short period of time suffer greatly in filling them back.
Tenants stopped paying rents
Landlords reported that a large segment of tenants in various regions of Kuwait stopped paying March rents due to suspension in their job flows, expressing its wish that landlords understand the pressures they are subjected to by exempting them from paying their rent temporarily or reducing it. Tenants have been demanding that they be exempted from paying the rents for various periods, or reducing rents by collecting a petition signed by the building tenants since many companies have been suspended from operations.