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Bill seeks to regulate house rent
January 10, 2015, 8:37 am

MP Faisal Al-Duwaisan has presented a bill consisting of 11 articles for organizing the house rental sector by fixing rents of residential units based on location and punishing house owners who increase the rents of their residential units illegally.

According to Article 1 of the bill, this law applies to non-furnished housing units allocated for individuals for accommodation purpose in commercial, investment and residential areas.

This law does not apply to housing units rented out by the state, embassies, international organizations or commercial companies for their employees.

Article 2 stipulates that the owner of the building shall determine the rental value in pursuant to the regulations and standards specified in the provisions of this law and will be issued license for renting out the housing units based on the rental value approved by the Municipal Council and authenticated by Ministry of Commerce. In all cases, the house owner should present the license of lease approval of the existing rental contracts in order to rectify the rents of their residential units in accordance with this law within 90 days from the date the law has been applied. It is permitted for owners to set a lower rental value for their residential units than the one set by Municipality irrespective of whether the contracts were signed prior to or after the application of the law.

Article 3 of the bill states that if the tenant, before or after this law was implemented, observes that the rent set by the property-owner does not comply with the conditions specified in this law, he may revise the terms of the contract with the Municipal Council within 90 days of the enforcement of this law or signing of the contract, and obtain approval from Ministry of Commerce to set the rent of the housing unit. In any case, he may resort to the judiciary at any time during the validity period of the contract.

Article 4 stipulates that the rental costs of housing units will be evaluated in consideration of the total area of the housing unit in square meters based on the following classification:-

â–  KD 2 per square meter for residential units located in all areas of Capital Governorate except those located beyond Shuwaikh area.

â–  KD 1.500 per square meter for residential units located within Hawally Governorate.

â–  KD1.250 per square meter for residential units located in Farwaniya Governorate, Mubarak Al-Kabeer Governorate and West of Capital Governorate beyond Shuwaikh area.

â–  KD 1.200 per square meter for residential units located in Jahra Governorate and Ahmadi Governorate.

Article 5 of the bill stipulates deduction of 20 percent of the basic rental value of old houses that were built or rebuilt 30 years ago.

According to Article 6 of the bill, the rents of new buildings constructed or reconstructed within the last three years should be added by 35 percent of its basic rental value.

Article 7 stipulates adding 20 percent of the basic rental value to the rents of residential units located on the seafront or 500 meters away from it.

Article 8 stipulates adding 10 percent of the basic rental value to the rents of residential units directly overlooking main public roads that divide one area from another.

According to Article 9, if the renter violates the law by increasing the rental value from that stipulated in this law, a fine of not less than KD 5,000 will be imposed on him for each violating contract. He will also have to return to the tenant the difference in rental value irrespective of whether or not he complies with the procedures specified in Article 2 of the law. However, if he deliberately rents the premises in violation of Article 2 of this law, he will be fined KD100.

According to Article 10, the minister of Commerce and Industry can amend this law to increase the basic rental values of any housing units by 20-50 percent five years after this law is enforced.

Article 11 stipulates that the prime minister and the ministers shall implement this law, which shall be effective from the date it is published in the official gazette. In another development, parliament’s Youth and Sports Committee Thursday discussed the plan for developing the Kuwaiti sports sector in the presence of Minister of Information and State Minister for Youth Affairs Sheikh Salman Hamoud Al-Sabah and Head of Public Authority for Youth and Sports Sheikh Ahmad Al-Mansour Al-Sabah.

Chairman of the committee MP Abdullah Al-Mayouf informed reporters that the committee had discussed the plan for developing the sport sector and executing related projects. Affirming that the government has been preparing a study in this regard, he revealed that the Public Authority for Youth and Sports has been assigned by the Cabinet to study the privatization of clubs.

MPAl-Mayouf explained that the committee deliberated on several aspects related to the problems faced in the sports sector, particularly regarding linking sports with education and increasing attention to sports in schools. He said the committee is waiting for the government to complete its study on privatization of clubs so that the committee can study and discuss it and form an opinion about it. When asked about Kuwait Football Association, MP Al-Mayouf said the current problems in the sports sector is due to absence of a law for regulating the work of sports clubs, adding that Decree 26/2012 on sports associations has not yet been implemented because of some flaws in it. He revealed that the government has prepared another decree 117/2014 on sports bodies in which the flaws found in the previous decree have been addressed.

However, this new decree is yet to be voted on by the parliament. In addition, tribal MPs have accused officials of Kuwait Anti-Corruption Authority of showing discrimination towards tribe members and Bedoun applicants when appointing Kuwaiti employees in the authority. MP Mohammad Tana from Al-Enezi Tribe said many segments of the Kuwaiti society were rejected in the appointment of employees for Kuwait Anti-Corruption Authority, which contradicts the announcement issued by the authority. He revealed, “Not even one of the applicants from the tribes has been appointed. This is against the concept of national unity and proves the existence of real corruption in the authority”. MP Tana stressed that the authority’s actions are unacceptable, urging the Prime Minister to intervene in the matter and review the recruitment process.

Meanwhile, MP Majid Mousa from Al- Mutairi Tribe revealed that he has some documents which prove the involvement of some members of the Board of Trustees of Kuwait Anti-Corruption Authority in appointing their relatives in senior administrative positions of the authority.

Affirming that he has verified the information at his disposal, he warned that he will reveal the names of those involved in the scandal inside the Abdullah Al-Salem Hall in front of all the National Assembly members if the authority fails to provide him with the names he requested. He added that he will expose the reality of Kuwait Anti-Corruption Authority which has avoided appointing competent and qualified tribe members as its employees.

Coutesy: Arab Times

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