Tenants, landlords and real estate management companies, have demanded flexibility towards the early termination fine of rental contracts, by exempting them from them, with the aim of moving to low-cost housing units, given their financial disturbances due to the repercussions of the emerging Corona Virus (Covid 19).
They stressed, through "Emirates Today", that the real estate management companies should take into account the conditions of the tenants, and what some of them are currently facing in terms of reducing salaries or leaving for work.
In turn, real estate attributed the failure of some real estate management companies to be flexible with the tenants, to take interest in collecting profits only, calling on these companies to provide facilities that take into account the current exceptional circumstance that the tenants go through.
Tenants' complaints
In detail, the tenant, Mohamed Abdel Rahim, said that the real estate company that runs the building in which he resides, told him that he would be obligated to pay the value of a month of the lease, in case he wanted to terminate the contract early.
He added that he is seeking to move to a less expensive housing unit, after the company that works for him cut his salary, after the repercussions of the new Corona virus, and the existence of other financial obligations related to school and living fees.
In turn, the tenant, Ahmed Abdullah, criticized the inability of some real estate companies and landlords to offer exemptions and facilities to tenants in these circumstances.
He said that the landlord in which he resides refuses to reduce the rental value, or exempt him from the fine of ending the rental contract early, with a value of two months, in order to move to a less expensive residence.
Be flexible
Tenant Mamdouh Ibrahim agreed that real estate management companies should take into account the conditions of employees and the financial turmoil they are currently facing from cutting salaries or leaving work, calling them to be flexible and exempting tenants from the fine of not completing the lease.
He said that the company in which he works obligated him to leave without pay, which compelled him to search for housing options at a lower cost, but that the real estate management company wanted to fined him the value of two months, in case he ended the contract early.
In the same context, the tenant, Dana Mahmoud, was surprised that the real estate companies did not offer initiatives that take into account the financial conditions of the tenants.
She pointed out that if the companies are unable to offer initiatives or cuts to tenants, the first is that they are not tough on the issue of a fine for the early termination of the contract, the inability of the tenant to continue as a result of his financial circumstances, and his search for housing at a lower cost that suits his new situation.
More restrictions
As for the tenant (Mustafa S.), he called the landlords to sympathize with the tenants in such circumstances, and that there be flexibility in the transfer process, without restricting the tenant to more restrictions, including the fine of not continuing with the lease.
For his part, the tenant (Ahmed A.) stressed that many real estate managers do not do what they have to do in such circumstances, as they do not accept the reduction of rents, and at the same time insist on the fine of the early termination of the lease, pointing to the demand of a real estate owner for a friend of his With a fine of one month from the lease, to allow him to move and end the contract early.
The tenant, Abdullah Kazim, said that the problem lies with the real estate management companies, not the owner, saying that the real estate manager is the only beneficiary of all the fines he imposes on the tenant.
Take profit
To that, he attributed the director of the "W Capital Real Estate Group", Walid Al-Zarouni, that some real estate management companies did not have the flexibility to offer exemptions from the fine of not completing the lease term, to interest in collecting the profits, which he signs in those unfair practices, especially with everyone calling because It has a societal role under exceptional circumstances.
He continued, "If the assistance is not through offering rental cuts, then at least there should be flexibility for companies towards the tenant, and let him look for a less expensive option that suits his current financial conditions."
Al-Zarouni pointed out that some companies invoke the existence of financial obligations that prevent them from offering initiatives, or exemption from the fine of not completing the lease contract, but in practice, companies are not harmed in the event that the tenants are exempted from these fines, while paying all financial dues for the months in which the property was used Especially since most of the rental systems in the region and a number of countries in the world are done according to the monthly payment system and do not require the tenants to pay an annual or quarterly payment, and therefore, there is no real objection to exemption from these fines.
Law and flexibility
For his part, the chairman of the representative committee for the real estate sector in the Sharjah Chamber of Commerce and Industry, and the head of "Al-Ghanem Real Estate Company", Saeed Ghanem Al-Suwaidi, said that the law gives the tenant the freedom to move without fines, if he informs the property owner or the company that manages the property 60 days before evacuation , But companies are demanding flexibility under the current circumstances, which are exceptional.
Al-Ghanim called real estate companies to provide facilities and initiatives as best they can, and in a manner that does not expose them to losses, while taking into account the conditions of the tenants in light of the implications of the emerging Corona virus.
He pointed out that most practices of insisting on collecting fines for not completing the lease contract are done by real estate management companies, not landlords.
Rationalization of spending
In addition, the real estate expert, Dr. Raad Ramadan, demanded that the owners be more flexible with the tenants when moving, pointing out that many individuals leave their housing units, compelling them to rationalize spending, which requires their assistance and mitigation, because their ability to bear is weaker than the owner's ability to bear For this crisis.
He added that many people lost their jobs, or their salaries were cut by companies.
The interests of both parties
As for the real estate expert, Mohamed Hareb, he called for an understanding between the landlord and the tenant, in a way that serves the interests of both parties.
He said: "The landlord must take into account the humanitarian conditions that many individuals are going through in the current period. The landlord must be more flexible with tenants who are under pressure to force them to move in order to rationalize spending, which cannot be restricted with fines."
Two property management companies: are bound by a specific return to the owner
The CEO of "Standard Real Estate Management Company", Abdul Karim Al Mulla, said that the owners are also affected, and they have obligations with banks, pointing out that many housing units are covered with maintenance fees, which makes the owner maintain a certain or specific level of return for the housing unit, pointing to Until the property manager tries on his part not to drop that return, in order to continue working with the owner.
For his part, Hani Abadi, director of the “Al Nashmi Office for Real Estate Management” in Ajman, said that the property manager is obligated to the owner with a specific return, which is predetermined, which causes him to try to maintain the building’s income, so that his client does not lose, and in this case owner.
He pointed out that the office he manages deals with the tenants according to each case, pointing out that the case that deserves is assisted by reducing the rental value, and in the event the tenant insists on leaving the property, we facilitate his exit in a way that preserves the interest of the office and the landlord.
Hani Abadi.
Real estate broker: Unfair practices
The real estate broker, Majdi Abdulaziz, said that a number of real estate management companies took the initiative to exempt tenants from the fine of not completing the rental contract currently, while others adhere to this fine strictly so that their returns are not affected, which is considered unfair practices, especially that they are carried out under exceptional circumstances in Markets.