These include rental reductions, validity of contracts up to 14 months, and free subscriptions to entertainment destinations
Tenants are demanding equality with the "newcomers" in terms of benefits and facilities
The units offered in the real estate market are currently exceeding the demand.
Photography: Najeeb Mohammed
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Old tenants demanded equality with their new counterparts who receive benefits and facilities from the owner or property management companies, despite their preference for staying in residential units and not moving to other units, despite the low rental values.
They explained to "Emirates Today" that the landlords voluntarily reduce the rental value of the new tenants, in large proportions, in exchange for a lower reduction for the "old", in addition to other privileges related to the value of insurance, and the validity of annual lease contracts for periods of up to 14 months, while some tenants get Newcomers to furniture vouchers, and free theme park subscriptions for up to a year.
Claims of tenants
In detail, the tenant demanded, Ahmed Abdel Karim, to equate old tenants with their new counterparts in the benefits they get.
He added that the new tenants are currently getting several benefits that the current tenants do not get in the building itself, despite their preference for staying in residential units, and not moving with the low rental values in the market.
Abdul Kareem stated that the rental value for new tenants is reduced by 25%, in exchange for a reduction of between 5 and 10% for the current tenants, after difficult negotiations with the owners, pointing to exemptions related to the amount of insurance recognized when renting.
For his part, the lessee, Mahmoud Hafeez, confirmed that there are significant differences in dealing between the old and the new tenants, as well as a significant reduction in the value of the contract that may exceed 25% for the benefit of the new tenants, in exchange for a reduction ranging between 5 and 10% for the old tenants, if the landlords agree to that in the first place. He pointed out that there are owners and real estate management companies that grant contracts that are valid for more than a year now, compared to 12 months for old contracts.
Tenant Murad Shawky agreed on the existence of special privileges for new tenants, calling for equal rates of rent reduction, renewal of apartments for current tenants, and free subscriptions in entertainment cities, as is the case with new tenants.
Abundance
Offered
In addition, the CEO of "Skyline" real estate brokerage in Abu Dhabi, Nader Hassan, acknowledged that new tenants get many benefits and facilities that their old counterparts do not get.
Hassan explained that these advantages and facilities are aimed at attracting new tenants for housing, as a result of the large abundance of rental supply, with the decline in demand, as well as the decline in price levels in the market during the current period, in the context of intense competition to attract tenants in light of the repercussions of the new Corona virus (Covid) -19).
Hassan added, "The situation is different for the old tenants, as there are difficulties in moving to a new home for most of them, especially since the transfer process is expensive and includes expenses, which makes the old tenant think a lot before changing housing."
He added that some tenants are currently cautious in light of the precautionary measures related to the Coronavirus, preferring not to move, in addition to having “loyalty” of some residents towards their rented units, especially if housing units are chosen near work, schools, and social relations and friendships with neighbors. .
Privileges and facilities
Hassan pointed out that individual and corporate landlords reduce rental values by significant rates of up to 25% for new tenants, in exchange for lower rates for old tenants.
Some landlords also agree to increase the annual contract period to 14 months instead of 12 months, and exempt from the requirement to pay the insurance value, while the new resident enjoys in many cases the complete maintenance and renewal of the apartment, and its cleaning by specialized companies.
Hassan revealed that some real estate management companies give new tenants vouchers for free purchases of furniture and other supplies from some commercial centers, or give them membership for up to a year in entertainment destinations, to motivate them to live.
The cost of moving
For his part, the owner of "Dreamland Real Estate Management Group", Ibrahim Al-Saidi, said that the facilities and advantages that landlords resort to during this period are to attract tenants, given the large supply and the presence of vacant housing units.
Al-Saidi added that some old tenants prefer not to move to new housing units, due to the large costs involved in the relocation process, such as paying the real estate broker's commission, the cost of moving furniture, and bearing the cost of making changes to the new apartment, as well as linking to the workplace or vital areas such as Schools.
Intense competition
In the same context, the economist and general manager of the "Truth Economic Consulting Company", Reda Muslim, said that landlords are obliged to provide facilities, temptations and benefits to the new tenants, in order to rent vacant housing units in light of the intense competition, and the offered units exceed the demand.
He explained that the situation is different for the old tenants, who are already in the housing units, in addition to the fact that most of them need to provide large sums of money for transportation, such as paying the down payment for the new unit, buying new furniture, the cost of transportation, and paying the real estate broker's commission.
Landlords: Old tenants have had successive discounts
The real estate owner, Saud Muhammad, said that there are real estate owners who reduce rental values by large percentages for new tenants, due to the low levels of rents in the market and the increase in supply.
He emphasized that the old tenants also had successive reductions over the past three or five years in particular, which makes the reductions almost one for both parties.
The owner, Ali Saeed, agreed with his counterpart, adding that maintenance costs the owner a lot for the old tenants, especially in old buildings that are more than 10 years old, and he said that it adds burdens to the owner.
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