his is probably the most important article I will write, which I hope readers will use as a checklist. Pass it on to both tenants and owners before any handover or takeover occurs, so that both sides know and clearly understand the expectations and obligations each other has. This article applies equally to both sides, either moving in or out of a property – a villa, apartment or even a commercial property or office – at any time.
Landlords from hell and unwanted tenants are the subject of ongoing raging debate across the globe. Some owners or landlords will hand over a property with problems, knowing that despite verbal promises, little will be done to fix them. The worst, though, is a tenant who takes over a property in good condition and proceeds through lack of consideration or respect to damage and gradually destroy the property, or cause dilapidations so extensive that they require considerable financial input to rectify.
The importance of record keeping
The ease of digital technology today places almost every person in a position to record the exact condition and state of a property and surrounding circumstances, to preserve and where appropriate share the information in the form of photographs, video recordings and, where necessary, a value-added audio commentary and description. Proper preparation of a property prior to handover prevents a wide array of dynamics 60 AH APRIL 2018
Interior photograph top left: courtesy of Springfield Royal Ambassador
A phrase we hear all too often today is, “The property was in a shocking condition when it was handed over!” No matter which side of the property handover or takeover equation one is on, there is a moral, legal and financial responsibility to ensure the best possible condition of a property at the point of handover/takeover by both parties involved.
Contributor
Properties should be in the best possible condition at the time of handover or takeover. The ideal scenario is a flat in immaculate condition (like that shown top left). The remaining pictures show examples of properties returned in an unacceptable state, in which furniture has been stained (opposite below), and floors, fridges and furniture are left dirty
including frustration, anger, reprisal, reputational damage and financial penalties or incurred costs. Generally, a lease or sale agreement will stipulate the condition of the property at the point of handover. However, a picture speaks a thousand words and can be the only defence in some situations. Handing over a property in a good, clean functional and serviceable state is not only a positive influence on the outcome of that POT (point of trade), but it could also influence other dealings and outcomes down the track between the two parties. It is always advisable to make a clear, concise, accurate, up-to-date and useful record of the state, condition and circumstances at the time of handover to avoid any deliberation and exaggeration or argument on the actual situation and state of a property when it is handed over.
Deposits: the lowdown
Many tenants assume that they can simply fade away after their final month, using the deposit as the last month’s rent. This is illegal. The last month’s rent is a bond put in place to cover any damages, dilapidations or costs caused or incurred by the tenant and using it as the last month’s rent is a breach of contract unless it has been mutually agreed (in writing). At the same time, many greedy and poorquality landlords nefariously consider ways
and means of keeping a tenant’s deposit and not repaying it, using whatever reasons and excuses they can, whether legitimate or not. One notorious landlord, who owns a beautiful but noisy three-storey apartment building with inadequate soundproofing/ insulation, probably makes more out of keeping his rapidly migrating tenants’ deposits when they leave early (exasperated and upset), than he does from legitimate rental income.
How RERA can help
The introduction of RERA (Real Estate Regulatory Authority) is welcomed and necessary in Bahrain and this will also no doubt introduce a rent-deposit guarantee scheme. RERA is set to effectively streamline and regulate control of the property industry in Bahrain. Anyone involved in or considering a transaction in property in any way, shape or form, is advised to read up on the role of RERA and their rights, obligations and responsibilities. See www.rera.gov.bh. At the time of handover/takeover, a property should be in the best possible condition, with all areas of concern documented and all waste, excess items and furniture removed (including rubble, garden and household refuse and rubbish), and any dilapidations documented, repaired or agreed to by all parties.
Take accurate, clear, detailed and, if possible, time/date-stamped photographs at the time of handover and share a copy with the other side if appropriate. Especially record on the agreement – and point out – any obvious damages or dilapidations, especially those not listed/noted in any handover inventory. Record accurately the electricity, gas and water meter readings. Take a full set of internal and, where appropriate, external photographs of all aspects and angles of the property, including cupboard and storeroom interiors. Make sure that all rooms photographed have a range of angles covering the full interior of each room (all six sides). If appropriate, make a video and add commentary pointing out aspects of the property or area being filmed or photograph that may be contentious. Store photographs and video footage carefully for later use. Remember: talk is cheap. If it is not in the contract in ink, it’s worthless. APRIL 2018 AH 61