December 6, 2007

The Landlord, Tenant, and Government Law

We all probably heard about this, but, how is it cooking? God knows and as we say God forbids" allah Yustor."

How many people will be thrown out of their houses, and shops to the streets? We Hope nobody.
How many alternative housing units will be provided? Maybe 100 of thousands.

How much shall the Landlords and tenants compromise? Alot

Are you with this law or not?

Well, it's a fair proposal but how to implement it is challenging.

How to make everybody happy?

My suggestion is to create an account where the Tenant pays the extra rent to the Landlord taken as a percentage of increase in rents depending on the Tenant Credit history: Financial statements, or taxes, or Wages, or whatever credit the Tenant holds.
Oops, I forgot we don't have credit history in this country, other than your political history.

SO,

Maybe we start by "First things First" and start thinking /about thinking/ of creating a social security and credit history for every citizen. Then we start talking about the wealth distribution.

OR, we just throw the tenants out and just care about the richer getting richer.

Note: It's understandable that it's ridiculous to pay a 100JD to rent a shop in West Amman!!! However, the mistake from the beginning was made because of the law and who put that law is to be taken the responsibility and not the citizen. If "The Law" to be changed the three parties should be involved:

The Tenant: Whose paying a ridiculous amount of money but covered with a contract.
The Landlord: Where the value of the property is much higher than the payments received. The Government: Who's changing the law

Hence, the three parties involved need to have a fair settlement

AMMAN - Lawyers and human rights activists foresee “social upheaval” and a legal hubbub when a controversial provision in the Landlords and Tenants Law will leave all property lease contracts null and void.

They expect thousands of traded lawsuits between tenants and landlords to flood the already overburdened courts.

Article 5 of the regulation, which was passed by Parliament in 2000, stipulates that all property rent contracts will be null and void on December 31, 2010. The provision gave the renters 10 years to look for alternatives.

“Where shall I go?” exclaimed father of seven Abu Ahmad, 48, who has lived in a leased flat in Jabal Nasr neighbourhood in Amman for almost 30 years. He works in the Central Vegetable and Fruit Market for JD10 a day and pays JD80 monthly for rent.

“The landlord has already informed us, that by 2011 we will have to leave,” he said. At present, Abu Ahmad, like thousands of renters in the country, cannot afford to find another apartment, particularly with the increasing rent rates and prices of housing units.

"I will not leave just like that,” he said.

Type rest of the post here

A flat of 150 square metres in a middle-class area in Amman costs around JD60,000-70,000, and a minimum of JD200 monthly rent. With a $2,540 per capita income this year and an inflation rate expected to rise higher above the six per cent registered last year, the cost will be too high for people like Abu Ahmad to afford.

“I will be thrown in the street with my family and I just cannot allow that,” he said with a threatening stern look on his face.

There are thousands of tenants who share Abu Ahmad’s attitude, said Issam Sharif, a lawyer who conducted a study released this week on the impact of the controversial law in cooperation with Al Ahd Party and the Law Group for Human Rights (MIZAN).

MIZAN’s director, Eva Abu Halaweh, said trouble is a strong possibility: Landlords will be filing lawsuits to kick tenants out and tenants will try to find any reason to hold on to the places where they live. Violence is not a far possibility, she said.

The Department of Statistics did not have updated figures on the number of leaseholders or landlords.

Al Ahd Party’s Secretary General Khaldoun Nasser estimated that there are 1.5-2.0 million real estate renting contracts.

He said these contracts include private and public schools, bakeries, groceries, pharmacies and light industries that might go out of business in 2011.

For their part, landlords argue that renters have benefited enough from properties at low rates for long and it’s high time they left.

Nabil Abdeh, formerly a United States resident, said his late father leased the first floor of the family house in the affluent Sweifieh neighbourhood for JD100 in 1980. The tenant would not leave now, while the real estate prices in this area are skyrocketing, the son said. The landlord pays the water and electricity bills under the original contract, Abdeh said, adding that the rent value is hardly enough to cover these utilities.

“This is unfair,” Abdeh said, noting “if the law is going to fail in protecting our rights, what justice can we expect?”

“A complicated issue,” said Nasser. “But the solution is not shifting the burden from the owners’ shoulders to the lessees.”

Activists say that landlords lobbied for the law seven years ago because they would make millions if their tenants were out.

The lobbying started mid-1990s, Sharif said in his research, following the issuance of the older version of the law in 1994.

Property owners demanded amendments to that law and their efforts paid off as the 13th Parliament endorsed the amendments in 2000, Sharif said.

In the 14th Parliament, 64 deputies proposed changes to the 2000 law, but the motion remained in “the drawers of the legal committee”, according to Abu Halaweh.

His Majesty King Abdullah brought up the issue again in the Speech from the Throne at the opening of the 15th Parliament this week.

The King said: “From this democratic forum, I call on the legislative and executive authorities to start a positive dialogue on the Landlords and Tenants Law to come up with practical solutions that take into consideration the realisation of social security, justice and the interests of all, whether they are landlords or tenants.”

In the speech, as on other occasions, he instructed the authorities to work on providing housing for those with limited income at affordable prices, and declared 2008 as “year of housing”.

Related Posts:

Housing for Limited income people bought by High income people.

6 comments:

Ahmad Al- said...

Most of our newly laws, regulations, initiatives are incomplete.. Which might be intended for a good reason, but their dull shape mocks the original goal. At best if we solved something, something else has to be dealt with after some 10 years.

Ahmad Al-Sholi said...

Regarding the credit investigation law, I was working in a company associated in such business and the problem in 2003-2004 was that the parliment (lower house) was rejecting it as it represents "The Big Brother" Theory. That 14 house was a joke..

7aki Fadi said...

Very interesting.

For future planning I think the law should allow the owners to increase the rent by a certain percentage after a certain period of time

For example they can increase by 15 percent every 3 years . I think that’s how it's done in Dubai

I do feel with the owners but I also feel with the tenants, this is a tough one.

And it’s about time Jordan starts building affordable housing units

Amman Voice said...

Ahmad

Do you know if it's still on the agenda or not? Maybe if it was presented in a dufferent way it will get more attention? It's all about marketing, they need to understand the benefits of such credit if it was proposed to give order and solve many many problems, for the big and the small brothers!

So in our case, and many other cases like the affordable housing units, the credit history will show the status of the needy people.

Otherwise, how will the don't have benefit from the real estate and Mortgage offers? They need it more than the "big brothers"!

The Credit history is not made for the "big Brothers", it's made to check whose CLEAN and Whose NOT.

Amman Voice said...

7aki fadi

Thats exactly what should happen.

First things First is to build more affordable housing but selling it to the Poor and not to the Real Estate broker.

The increase in rent should be linked to the inflation rates.

Ahmad Al- said...

I have no idea about status, its not rejected but returned for the government to develop. they can not reject it, its beyond them. A necessity to reform and enhance, the society of information, and decision based on information.
The 14 House belonged to the 14 century. They refused the credit law being a version of intelligence (mokhabarat) agency on the people, thats how they discussed "The Big Brother Theory & Book".
They refused as all know the Journalism Law that was later enforced by HM the king and approved accordingly by them.
My conclusion: they do not want credit law so not to expose their bad debts within the banks and to cover up for all the corrupt that such a law will inform people about everyone financial behavior, they do not want Journalists to go write whatever they want without being stopped but on a court order..