Expats in Kuwait hope for reduction in rent

This news has been read 127829 times!

KUWAIT CITY, Mar 17: In midst of warning and precautionary measures to be taken against the spread of coronavirus infection a large segment of expatriates working in small and medium-sized companies wishes reduction of rent of their apartments.

Owners of real estate who own commercial complexes took an initiatives to reduce their rents in line with the decision of governments closure of commercial complexes. Some owners of investment buildings have responded positively to the repercussions of the government closure, by exempting the rent for March.

Whereas for some commercial complexes rents have been exempted for two consecutive months because of the financial challenges faced due to the current crisis by many tenants after their salary of some of them stopped suddenly.

A number of expats stated that due to spread of virus and the governmental precautionary steps resulted in closure of their work places and they will not get paid their usual salaries as the owners are facing huge operating losses. Large segment of them work as contracting workers. From a legal point of view the workers will not get paid unless the firms operate.

They pointed out to that the crisis of Corona severely affected their incomes, to the degree that leads them to the possibility of defaulting on the payment of their rent and then entering into legal battles with the owners.
Other expatriates emphasized that although their salaries were not interrupted during this period because they work in government agencies or in large companies that are able to absorb the economic shock, the purchase of the necessary supplies to counter this virus increased their expenses, explaining that the exceptional reduction of rents helps them absorb the effects of the crisis .

They stated that the crisis of corona severely affected their incomes to the degree that leads them to the possibility of defaulting on the payment of their rent and then entering into legal battles with the owners.

Some expatriates emphasized that although their salaries were not interrupted in this current crisis as they work in government sectors or in large companies that are able to absorb the economic shock, but purchase of the necessary supplies to counter this virus increased their expenses, explaining that the exceptional reduction of rents will help them to absorb the effects of crisis .

Sources said that some of the expatriate workers who work on a daily basis, and their work is almost completely stopped. It will be difficult for them to pay the rents of their housing which they generally stay on sharing basis neither they can leave Kuwait to their countries to reduce expenses due to the suspension of flights.

Issa Al-Subiti (owner of a number of buildings) said that there is no reason to reduce rents at the present time, especially since a large segment of expatriates did not cut their salaries during this period.

He pointed out that at present should focus on helping small and medium-sized enterprises as they are most affected by this crisis and real estate companies and real estate owners are forced to reduce or drop rents from business owners to avoid closing their workplaces in an circumstance which is outside of control due to result of government directives and precautionary steps to control spread of Corona epidemic.

Al-Sobity pointed out that the lease contracts do not stipulate the reduction of rents in a time of crisis, but that this step, if taken, would be purely on humanitarian basis to help in the face of the repercussions of this epidemic and in terms of social contribution by real estate owners.

Indicating that matters must be estimated as per their income and rents cannot be reduced for all expatriates because some of them did not cut their salary due to the strength and solvency of the companies or they work in government sectors. Some of them will not receive salaries for the period of government closings as well as daily employees, who can be considered separately by the property owners.

While Al-Sabti explained that this segment must submit documents stating that they did not receive a salary during the closing period in order to be considered by the owners he called on the landlords to maintain the tenants because in the event of eviction they will not be able to find tenants easily.

Citizens have appealed to landlords to exempt tenants

A group of Kuwaiti citizens made a humanitarian appeal to exempt the tenants from rents whose livelihoods has stopped and look at their tragic conditions the country is going through due to the spread of the Corona virus.

They stated that this call came from the premise of the great humanitarian leader of the State of Kuwait which was adopted and drawn by the leader of humanity His Highness the Amir Sabah Al-Ahmad Al-Jaber Al-Sabah to contribute to the assistance of those who livelihoods have been effected and are in distress due to non payment of salaries.

They pointed out that in this humanitarian initiative everyone is invited to adopt and support it with encourage. Many companies and institutions have taken into account the humanitarian conditions by exempting their tenants from the rents owed to them in line with the current economic conditions in light of the spread of the Corona virus.

CEO of the buildings company, Walid Al-Shariaan, confirmed the exemption rents of all restaurants and cafes spread in the Avenues Mall for the months of March and April. In addition to granting a discount of 25 percent of the rent plus postponing the payments of defaulters from owners of the project Small and medium sized companies, and reschedule their payments over several months. Al Rai

This news has been read 127829 times!