Moroccan government targets rental housing crisis
2008-10-05
A new study in Morocco found mistrust between landlords and tenants, fewer people renting houses and a lack of motivation for people to rent. The government has resolved to find a solution.
By Sarah Touahri for Magharebia in Rabat - 05/10/08
 [Sarah Touahri] New government proposals are in the works to end the crisis in the Moroccan rental housing sector |
The Moroccan government is planning to shake up the country’s troubled rental housing sector.
According to a government study released September 24th, Morocco faces a shortage of developers in both the public and private rental housing sectors, few financial and legal incentives for people to rent and an ill-defined and mutually-suspicious relationship between landlords and tenants.
New proposals are in the works to end the crisis, Housing, Town Planning and Development Minister Ahmed Taoufik Hejira said at a press conference announcing the study findings.
One major problem the ministry analysis uncovered: 30% of landlords surveyed said they have encountered disputes with tenants over increasing rent, late payments or no payments.
"Tenants refuse to pay higher rent," said landlord Mohamed Marouane, adding that he is disappointed by the direction the rental market is going. The study showed that the percentage of families living in rental housing units has fallen to 29% in 2008 from 43% in 1982.
"I’ve been renting my house with an area of 100m2 for 800 dirhams a month over twenty years, and now this price is set to more than double," he said. "I’m thinking of going to court."
To address problems uncovered by its study, the Housing Ministry put forward a number of measures. In addition to legal reforms to shake up the sector, it aims to restore trust between landlords and tenants, introduce tax breaks and create rental mediation companies to provide guarantees to landlords.
The government is proposing a 20% cut in the level of taxation on rent and the total elimination of tax paid by small landlords on their rental income. Seventy-seven percent of landlords would like to see the tax breaks available in the property sector extended to the rental sector.
The tax changes also support Morocco's new scheme for expanded social housing. The plan would give higher tax allowances for profits earned from homes rented to low-income families, tax breaks for rental-sector investments and subsidised long-term loans for the construction of affordable rental housing.
Mediation between landlords and tenants must be stepped up if the disarray in the market is to be tackled, the ministry's study recommends.
Hejira has high hopes that these proposals will restore trust between real-estate investors and potential tenants in order to fill some 163,000 currently empty rental properties.
A bill to strengthen the legal framework governing the sector will soon be sent to parliament.
"This will clearly define the rights and obligations of landlords and tenants and ensure conditions of profitability and stability in the relationship between the two parties," Hejira said.
"It is about time to take legal action," said realtor Ahmed Bzioui. "For example, the role of estate agencies should be expanded in this area to cover rent recovery and housing management."
Formalising the rental contract will also protect tenants. Some landlords are unofficially leasing their properties in order to avoid paying tax, leaving renters with no legal protection.
"It’s a common practice," one tenant told Magharebia. "I’m renting a flat in Rabat without a contract and am worried I could be thrown out," Hajer Bakali said. Still, she is willing to take the risk for a good deal.
"The rent is acceptable," she admitted.
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P Posted 2008-10-08
These new measures are a positive move in the right direction for everyone. One matter that i feel the article neglected to promote is more on the rights of the tenant. In my experience, landlords in Morocco cannot be trusted...creating agencies to oversee the process and contracts will stop the rogue landlords who see the deposit as a cash bonus. Landlords are usually nothing more than the ordinary person, and very often, a scourge on society. yet we are expected to trust them to not spend or run off with our deposits?
Anonymous Posted 2008-11-28
You seem to know a bit about the lessors who "profit" from this. I mean to say, there is a website that knows even more about this subject. Now, you have the opportunity to consult it. How can we acquire a lot of lessees if we do not respect our contracts? Respond, please, if you have a good answer.
Houda Bendahmane Posted 2009-07-30
Hello- Following many misadventures, I am turning to you to give a cry of "SOS!" After my father died, I become the owner of three-unit apartment building. Ten months ago, I decided to return to Morocco to take care of my mother, who was suffering from terminal cancer. Two months ago today, she passed away. I asked the renters of one apartment to clear out so that I could move in. To my great surprise, after ten months of stalling, they decided not to leave. They will not leave the place. If I want them to leave, I have to pay the 150 thousand dirhams, which strikes me as theft. After dealing with all of their hostilities, I took to legal proceedings. I gained nothing from this. I live in the apartment above theirs, which is far smaller, and I content myself in waiting for the steps I took to play out. So, as far as trust goes, I do not think I will ever be able to trust renters again in the future. The way they see it: the pay rent so they are at home. I just returned from Belgium and I cannot enjoy what belongs to me because once upon a time my parents offered rent that was ridiculously low and these renters - and I do mean all of them because I also have a garage that a renter is demanding 40 thousand dirhams to leave - just need to understand that I want to live in the house of my childhood in peace and tranquillity. According to the law, this is my right as the owner: the only way you can ask renters to vacate the premises is if you are moving in yourself. What should I do??? How long must I live with such useless quarrelling? As it is now, I am a monster who has come out of nowhere to ask for her things! Please help!
choukry Posted 2009-08-26
Hello- I am a Moroccan living abroad. I own a two-unit apartment building. I decided to return to Morocco to live there this year. I asked my sister, her husband and their four children to please clear out of one the apartments so that I could move in. They have been living there for six years for free until they could find housing. They decided not to leave. If I want them to leave, I have to pay them 120 thousand dirhams. I already offered to help them find other housing. They refused. They are in the habit of having free housing. It is as if they are at home. I do not get any benefit out of this as an ordinary Moroccan citizen. As a landlord it is my right to ask them to leave the place so that I can move in. I am turning to you to give me the addresses of a few organisations where I can get advice. -Sincerely
Latifa SKALLI Posted 2009-09-08
In response to Miss Bendahmane- Dear friend, after living through the same ordeal, I find myself with the moral obligation to write you just to show my support for you and to tell you about my experience, which will, without a doubt, be of great use to you. In short, the story begins six months after my parents' deaths after a tragic accident in March 2008. My husband and I decided to return to the country to live and raise our two eight-year-old twins in our family home in Fez. It was occupied by tenants for nearly nine years, and they paid ridiculously low rent. These tenants had the same attitude that surprised you. After endless negotiations, they asked for 120 thousand dirhams. My husband proposed to go see the family lawyer, who really pumped us for our money like usual after a year's worth of legal activities, procedures and paperwork, giving us headaches and taking up our time and money. (This is not even to mention the Moroccan administration.) And, none of this led to anything. However, we talked to a judge who is the cousin of my husband. He advised that we follow through on the negotiation. According to him, even if the law would be on our side after three years of being the owner, something that was not yet the case as I was only the owner for less than 15 months, the system was to rotten and the lawyers were all swindlers. It would not have ended for another three or four years, so six or seven years in total, if not more. So, we resumed negotiations and ended up paying 105000 dirhams and, for a period of three months, they did not have to pay a cent so that they could organise their move. Generally speaking, the advice I can give you, dear friend, is to really try to go as far as you can with the negotiations and, above all else, avoid...
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