JEDDAH: The general supervisor of Ejar has rejected allegations that the program favored one party over the other, saying that the system is aimed at ensuring a balance within the rental market.
Mohammad Al-Batti told a local publication that payment of premium for insurance by the tenant to the landlord is optional. “The insurance procedures will be organized to assess if there is any damage to the residential units. If none is recorded, the money will be repaid,” he said.
He said the ministry is keen to maintain affordable rents for tenants, not exceeding 30 percent of the individual’s income.
Al-Batti said that through Ejar, the Housing Ministry seeks to develop programs to stimulate both the private and public sectors and to maintain the rights of all parties in the rental process, including the tenant, landlord and the broker.
“One of the key pillars of the program is the adoption of the unified rental contract, which is an executive instrumental document that will contribute directly to reducing complaints and litigations in the rental sector. The unified contract defines the parties in the rental process clearly and fairly, and will easily and quickly resolve potential conflicts,” he said.
Regarding the increase in rents in recent times, Al-Batti said: “The prices of all products are governed by the principles of demand and supply. The same principle applies to the rental sector. The Ministry of Housing is working on achieving the required balance between these two factors.”
He noted that restoring the balance between supply and demand on residential units will require the development of programs that focus on encouraging and stimulating both the private and public sectors.
Ejar program ‘is balanced’
Ejar program ‘is balanced’
