A price gap of 5,000 dirhams for identical apartments in a single building
Tenants in Sharjah are demanding equality with the "newcomers" in contracts and facilities
The real estate market is witnessing competitive offers to attract tenants. Archive
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Tenants in Sharjah have complained about the intransigence of real estate and landlords management companies, and their refusal to reduce rental values in old contracts similar to those of new tenants, which formed a large price gap in a single building of up to 5000 dirhams, pointing out that they were not granted payment facilities, parking, or One month free, like the one given to new tenants.
In turn, officials of real estate management companies considered these practices temporary gains that cause loss of future tenants and affect the companies' reputation in the market, calling for flexible policies in contract rates.
Annual contracts
In detail, the tenant Muhammad Ibrahim said that the real estate management company insisted on renewing the lease contract for the apartment in which he resides, which consists of a room and a hall, for 29 thousand dirhams, despite the rental of the apartment next to him, similar in size and view, at a value of 24 thousand dirhams, while providing facilities for the new tenant. In a month and free parking.
He added that companies are taking advantage of the current difficulty of moving tenants, and the consequent transportation costs and rental commission.
In turn, tenant Ahmed Mahmoud said that he was surprised to rent the residential unit next to his apartment at a value of 25 thousand dirhams, at a time when the real estate management company insisted on renewing his lease contract at 30 thousand dirhams, which created a large price gap between the old and new lease contracts for similar units in the same building.
He pointed out that the company gives new tenants a month free of charge, and facilities in payment payments, while withholding these privileges from the old tenants, considering this to be an exploitation of the conditions of the tenants, most of whom, especially from large families, prefer to settle in one place for a long time, and avoid the high costs of transportation and commission.
Facilities and privileges
The tenant Hussain Abdul Hamid agreed that real estate management companies give new tenants payment facilities, privileges such as a month and free parking, at a time that is withheld from the old tenants.
He pointed out that what drives it to these practices is the preference of some tenants to renew their housing contracts even on unfair terms, in order to avoid transportation costs related to freight, commissions and fees for electricity, gas and telecommunications services, calling for equality between tenants in the privileges and rental values granted.
He continued, "In most countries, the old tenants are treated in preference compared to the new ones, given that the property continues for a long time, which means its commitment to repayment."
In addition, tenant Ismail Mahdi stressed the importance of equality between old and new tenants in lease contracts. He said, "It is not reasonable for there to be a large price gap between contracts for similar units within the same building."
Flexible Policy
For his part, the head of the representative committee for the real estate sector in the Sharjah Chamber of Commerce and Industry, Saeed Ghanem Al Suwaidi, said that equality between contracts for old and new tenants is subject to matters of mutual consent between tenants and owners, and they differ according to the management policies of the buildings, and according to the conditions followed in the contract between the two parties, especially with A competitive presence in the markets allows freedom of movement
He added that despite the absence of policies binding on equality in contracts, it is in the interest of landlords and companies to follow flexible policies in contract prices, and not to be intransigent to maintain tenants, especially tenants who are classified as "committed", which guarantees their continuation for longer periods in the housing unit.
Price gaps
In the same context, the CEO of Al-Somm Real Estate Company, Sufyan Al-Salamat, said that some companies and landlords are intransigent with the renewal fees of the old tenants compared to the new tenants, pointing out that these practices are noticeably present now, especially in light of stability and price correction in a number of Regions, which causes large price gaps for similar unit contracts within the same building. He added that some companies may benefit from the difficulty of moving old tenants, in order to avoid the cost of transportation and new fees for transferring services, but these companies will lose the loyalty of the tenants who will move to other buildings at the nearest opportunity, especially in light of a number of companies submitting competitive offers to attract tenants.
Al-Salamat stressed that equality between lease contracts for identical housing units in the buildings is an important issue that supports stability of occupancy and ensures the loyalty of tenants.
Temporary gain
The real estate broker, Magdy Abdel Aziz, considered that the owners or real estate management companies that adhere to renewing old tenant contracts at high prices, with large differences compared to the new tenants, as well as the inequality of privileges, they get temporary gains, pointing out that the tenant’s lack of comfort and awareness The lack of equality in the rental policies makes him plan to move in the following year, which exposes these companies to the problems of vacant housing units.
He added, "It is in the interest of companies and landlords to follow flexible policies with tenants, in reducing rental values in a manner similar to that of new tenant contracts, as the departure of tenants means greater financial costs when maintaining housing units, and the units remain vacant for periods until they are rented."
Companies are taking advantage of the difficulty in moving tenants, and the financial cost that it entails.
Sharjah Chamber: Equality between old and new tenant contracts is subject to mutual consent.