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FAST-TRACK DISPUTE SETTLEMENT

Bahrain plans draft law to regulate rents

Manama, February 1, 2014

Bahrain is set to discuss a draft law regulate rents and fast-track settlement of disputes between landlords and tenants in the kingdom.

Parliament is set to discuss a draft law setting out contractual obligations between landlords and tenants on Tuesday.

The legislation also proposes to fast-track the settlement of rent disputes.

"The law is in line with recommendations yielded by the National Dialogue," parliament utilities committee chairman Hassan Al Dosary told our sister paper Akhbar Al Khaleej.

A panel will be set up to settle rent disputes and an office established in each governorate to document leasing contracts.

Under the proposed law, landlords will be able to increase rent only two years after the contract is signed.

They can increase the rents for residential premises by only five per cent and industrial and trade premises by seven per cent.

Leasing contracts will have maximum five-year validity, unless the two sides agree otherwise in writing.

The landlord shall notify the tenant by a registered letter at least three months before the expiry of the second year, the new law stipulates.-TradeArabia News Service




Tags: Bahrain | law | residential rents |

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