‘No subletting without permission of owner’; Tenant, landlord’s rights detailed

‘No subletting without permission of owner’; Tenant, landlord’s rights detailed
KUWAIT CITY, Sept 15: In case of a dispute between the landlord and the tenant over rent, certain factors are taken into consideration by the court to ascertain whether the rent warrants a hike or not. These factors include: the prevalent rent of similar properties, size, quality, architectural finish etc, says a Kuwaiti lawyer, Labeed Abdal. After the tenancy contract is concluded, the landlord must hand over the property in good condition, and if the tenant discovers any defects that are unacceptable to him, then he can have the contract cancelled and claim compensation.
In an exclusive interview with the Arab Times on Sunday, Abdal talked about various aspects of the Tenancy Law.
Q: What matters does the Kuwait Tenancy Law regulate? A: This law covers the rental of residential flats, houses, buildings, land for storage use, offices, warehouses etc.
Q: What are the obligations of the landlord?A: The tenancy contract obligates the owner of the property to entrust his property, subject to the tenancy contract which must specify the rented property, including the rent for a specified or unspecified period of time without any obstructions.
Q: What standards are applied to estimate the rent increase, especially if a dispute arises between the landlord and the tenant?A: In event of a dispute between the landlord and the tenant regarding rent, certain factors are taken into consideration by the court to decide whether the rent should be increased or not. These factors include: the prevalent rent of similar properties, size, quality, architectural finish etc.
Q: What procedures are followed with regards to the rent contract?A: All tenancy contracts must be written; old unwritten contracts are governed by rules and regulations prevalent at the time of the verbal contract. This can be proven by witnesses or receipts in event of a disagreement over the rent.
Q: What would be the solution if there is a dispute between many tenants for one premise?In such a situation, the court accords priority to the first tenant provided he has a proven contract date preceding all others. The rest can seek compensation in the court if they have valid grounds.
Q: What happens if a tenant receives defective rented property?A: After the tenancy contract is concluded, the owner must hand over the property in good condition, and if the tenant discovers any defects that are unacceptable to him, then he can have the contract cancelled and claim compensation.
Q: How does the Tenancy Law regulate the issue of maintenance?A: A landlord must do maintenance to the rented property at appropriate times (during holidays, vacations etc). If he does not undertake this responsibility, then the tenant has the right to seek court permission to do so, and incur the reasonable costs on the owner. Suppose if the owner affirms that maintenance costs are inflated, then the judge has the right to adjust the figure in such a way as not to overcharge the owner while the rest is borne by the tenant. If the tenant does not accept to pay, then he can ask the judge to cancel the contract. Also the judge will take into account the rent amount and duration of stay in the premise regarding compensation.
Q: How does the law regulate the necessary repairs? And what if the tenant suffers any damages in the process?A: A tenant cannot refuse the owner to carry out any repairs or maintenance, or renovation, but the tenant can claim compensation or demand reduction of rent if he suffers any damages while the repairs are being done. The tenant can also have the contract terminated. Nonetheless the tenant and the owner can add fresh terms in the contract.
Q: What is the tenant’s obligation regarding the rent and how is it governed by the law?A: The rent must be paid at the beginning of every month, or as agreed. In case of any disagreement with owner for whatever reason, the rent must be deposited in the Execution Department of the Justice Palace or Courts within 20 days from the date of rent payment. This should be done after the tenant officially offers the rent to owner and he refuses to accept the same. The Execution Department then informs the owner regarding the deposit within 5 days. But if the owner accepts the money deposited in Execution Department for 2 consecutive times, then the tenant can deposit further rents in the Execution Department. Also the tenant can pay the rent directly to the owner any time, if the owner agrees to receive the same and gives him the receipt.
Q: Is it possible to withdraw the rental money from the Execution Department?A: A tenant cannot withdraw the money once he deposits it with the Execution Department unless he gets a court ruling to this effect, or permission from the landlord.
Q: When is it possible to amend the rent in the contract?A: It is legally possible to amend the amount of rent after 5 years, or lapse of contract period if the contract is valid for more than 5 years, bearing in mind the rent value of similar property. It should be noted that the rental hike should not exceed 100 per cent.
Q: What are the limits set for any structural changes in the property if the tenant wishes to do it?A: The tenant should not effect any structural changes to the property, and if he does, then the owner has the right to ask the tenant to restore it to its original condition.
Q: What are the obligations of the tenant in the rent contract?The tenant must take good care of the property he uses; he should maintain it properly (sanitary fittings, paints, doors, electrical fittings, etc) unless the agreement between owner and tenant dictates otherwise, or the owner willingly does that.
Q: What are the other obligations?A: The tenant is responsible for any abuse of the property; any damage suffered to the property while he/she is occupying it is their sole responsibility. The tenant should not sublet the property or part of it, unless permitted by the owner.
Q: How does the Tenancy Law regulate subletting?Subletting can only be done with the approval of the landlord. If the tenant has taken permission to sublet the property or part of it, and after some time leaves the property, then the rent relation between owner and tenant will be transferred to the one who rented the entire property from the tenant.
Q: What if the subletting is done without permission of the owner?A: In case of subletting parts of the property, the owner has the right to ask the tenant, who sublet parts of the property without the consent of owner to vacate the property and this can be done by a court order, thereby allowing the landlord to claim damages if there were any.
Q: What happens if the landlord sells the property?A: In case the owner sells his property to another party, and if the tenant knows of the sale, then he should pay the rent to the new owner, and the tenancy contract with the previous owner will be considered effective till a new one is drawn by the new owner without affecting the period of time needed to amend the rent (5 years).
Naturally the new owner should inform the tenant about the change of ownership; if he fails to do so, and the tenant pays the rent to the previous owner, then the new owner must claim his money from the previous owner. But if he proves beyond doubt that the tenant knew about the sale of the property and yet paid the previous owner, then he can claim the rent from the tenant regardless of what the tenant paid to the previous owner. Also if the new owner is not known to the tenant, then the latter can deposit the rent in the Execution Department.
Q: What action can a new landlord take if he discovers that the rent contracts are fraudulent?A: If the new owner discovers that the tenancy contract between the old owner and the tenant is fraudulent, then the tenancy contract will be considered null and void and the landlord can file a complaint and can claim full compensation.
Q: When is the tenancy contract considered terminated?A: The tenancy contract is considered terminated on the day of termination indicated in the contract; but if the tenant stays in the property without any objection from the owner, the tenancy contract is considered renewed for the same period of occupancy indicated in the contract.
Q: How can the rent contract be terminated by the concerned parties?A: If the landlord wants to terminate the contract, or the tenant wants to vacate the property then notification must be sent to the party concerned:A notification to vacate within 15 days for the rent periods not exceeding 3 months; a notification to vacate within 2 months for rent periods exceeding 6 months. In the tenancy contract, if there is a clause that stipulates a certain period for vacating the property, then this period should be upheld. All notifications to vacate the property must be written and officially handed over to the party concerned.
Q: When can the landlord ask the tenant to vacate the property?A: A landlord can ask his tenants to vacate the property only in the following cases: 1. If the tenant delayed in paying rent (being absent or away from country is not an excuse).2. If the tenant sublets part of the property without prior approval of the owner.3. If the tenant has breached the contract in any manner (effected changes to the property, or used property for other purposes than declared etc).4. If the tenant of a commercial property closes the property for over 6 months without a reasonable excuse, even if he was regular with the payment of the rent. 5. If the property becomes unfit for occupancy, or the owner has gotten official permit to demolish it.6. If the owner wants to demolish the property for the following reasons:After 25 years of building it. If the municipality grants him an extension of area for building wherein he can demolish and rebuild a bigger structure. Vacation of property becomes effective after the owner informs the tenant that he acquired all the necessary permits to demolish and rebuild. He should rebuild within 6 months from the date of getting the permits, otherwise the vacating tenant can reoccupy the property and demand necessary compensation.7. If the landlord wants to build an additional floor to the rented building, and to do so requires evacuation of tenants, then the owner should start construction within six months form the date of getting permits, otherwise the tenants have the right to reoccupy property or demand compensation.8 If the owner decides to add a floor to the rented building without demanding the tenants to vacate, construction should not affect the tenants; if it does, then tenants can abrogate the contract or seek rent reduction.9. If the owner or one of his close relatives needs to use the property, but he does not do so within a period of 6 months, and does not present a reasonable excuse, then the tenant has the right to ask for compensation.10. If the rented property is part of owner’s residence and he wants to use it for himself, or his close relatives (son, cousin, uncle), or his dependents and this must be proven in the court and can only happen if it is the only property of the owner.11. If a commercial property (stores, shops, offices etc) is owned by a minor whose legal guardian rented it, when minor attains legal age (major), he can demand his property to be vacated for him to use it within 6 months from vacating the property; otherwise the tenant can reoccupy the property or demand compensation.12. If the property was used for commercial purposes or to practice a certain trade or profession, and the tenant was deported by court order or by Ministry of Interior administrative order.
Q: Will the tenant be compensated in the above mentioned situations?A: In certain cases (para 4, 6, 7, 8, 9, 10) the judge has the right to grant the tenant a period of 6 months to vacate the property without paying rent or any compensation to the owner. If the judge gives a period to vacate less than six months, then the rest should be compensated to the tenant by an amount equivalent to rent for the remaining period.Regarding compensating the tenant when the owner decides to demolish in accordance with cases 6 & 7 indicated above as follows:If the period granted by the court or landlord for vacating the property is less than six months, then the owner must compensate the tenant for the rest of period to complete 6 months, and if the tenant has been occupying the property in accordance with agreement for more than 6 years, he is entitled to the above compensation in addition to the amount equivalent to 6 month’s rent.The tenancy contract is not terminated if the owner or tenant dies, but tenant’s inheritors or family can demand termination of contract.
Q: Assuming the contract is terminated, then what would be the obligation of the tenant?A: When the tenancy contract is terminated for whatever reason, it is imperative that the tenant should leave the property in good condition as he received it, but if he stays in the property after termination of contract and without permission from the owner, then the owner can double charge him for the period of overstay.
Also, it goes without saying that the owner can get an eviction order from court if there is a legitimate reason to do so. Damages resulting from natural causes are not considered the tenant’s responsibility.Labeed Abdal is the owner and founder of a law firm named after himself.

Labeed@lalaw.com.kw
http://www.labeedabdal.com

By Francis A. Clifford CardozoArab Times Staff

http://www.arabtimesonline.com/kuwaitnews/pagesdetails.asp?nid=22277&ccid=9