Category: User

Writer: Prof. Dr. Ahmad Hariza Hashim

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The long-running problem of rent arrears in the People's Housing Project (PPR) and Public Housing (PA) has worsened recently, and stakeholders have yet to find a solution.

The first article of this two-part series of reports summarizes the questions that arise and the steps that relevant parties can take.

Last January, the Seremban City Council (MBS) revealed that it had to bear accumulated rent arrears amounting to RM2.03 million following the failure of residents of two settlements in the People's Housing Project (PPR) to pay the monthly rent to the local authority (PBT).

MBS Mayor Datuk Masri Razali said the two PPRs involved were Seri Perdana Paroi People's Apartment and Lobak Low-Cost Apartment, respectively, involving rent arrears of RM1.1 million and RM930,000.

According to him, most tenants give the excuse of not being able to pay the monthly rent because they do not have a fixed income, even though the rental rate is set at RM150 per month.

MBS also revealed that tenants have lived 'for free' for two decades in PPR and have rent arrears exceeding RM30,000.

Last year (2023), Kuala Lumpur City Hall (DBKL) revealed a similar situation in its media report when it admitted to incurring accumulated rent arrears amounting to RM29.8 million following the failure of PPR and public housing (PA) tenants under the supervision of the local authority to pay rent.

The arrears involved 21,000 tenants out of a total of 40,000 tenants who live in PPR and PA.

The troublesome issue of paying rent arrears, especially involving PPR residents, is not new; it has been going on for many years since the program started back in 2002, involving various locations in urban and suburban areas.

DECISIVE ACTION

Commenting further, Ahmad Hariza said that the relevant authorities need to take appropriate action against residents who are reluctant to pay the housing rent provided by the government so that the practice is not normalized.

Actions that can be taken include imposing an order on the occupants to leave the house through law and court proceedings if they deliberately neglect to pay the rent.

This legal action needs to be clear so that it warns stubborn tenants to pay the rent arrears involved.

"Tenants need to be aware of their responsibilities because this monthly payment will also be a financial source for this flat's maintenance and repair costs. When financial resources are strong, it will indirectly create a habitable housing environment," he said.

DBKL is one of the PBTs that is seen to be taking proactive measures and acting decisively against its housing residents who default on paying rent.

DBKL's efforts include creating a Revenue Recovery Action Plan that contains various initiatives to ensure that rent arrears can be managed efficiently and effectively against problem tenants.

The move includes holding face-to-face sessions with unit tenants with arrears and implementing water supply cut-off measures.

"The area's residents' association should also play an essential role in assisting the PBT in providing information and educating residents about the importance of paying rent.

"When a PPR does not have strong financial resources, it will be a loss to the PBT and the government because they have to bear the cost of cleaning and maintenance, especially when faced with the problem of broken elevators," added Ahmad Hariza.

UPDATE DATA THROUGH PADU

Meanwhile, Nor Adibah Mohd Arif, lecturer of the Real Estate Division, Alam Bina College, UiTM, suggested using the Main Data Base System (PADU) to identify the profiles of government housing tenants.

He said PADU could help PBT and the government examine tenants' backgrounds and criteria and periodically check their household income.

Accordingly, he said that if residents cannot pay rent due to financial problems, help will be more accurately channelled to that group.

"PADU is a database that contains profiles of citizens and permanent residents living in Malaysia, so it will make it easier for relevant agencies to check tenant data.

 "This approach also indirectly makes it easier for government agencies to provide assistance to the target group," he said.

He added that the data obtained from PADU will indirectly prevent tenants from trying to exploit the fact that a particular income class monopolizes housing.

"Through this system, screening can be done more transparently, and priority can be given to those genuinely qualified to reside in PPR.

"We don't want anyone to exploit other people's hardships. If the tenant is found to own assets such as land or houses, the application and continuation of the rental contract can be cancelled," he said.

COMPREHENSIVE SOLUTIONS

Commenting further, Nor Adibah said that concerted cooperation by all parties is needed so that the relevant agencies and the government no longer bear debts reaching millions of ringgit due to the non-payment of rent for the people's housing units.

He said if the problem persists, it will lead to losses and damage the housing image.

''The residential rental law expected to be presented in Parliament this year is considered one of the best solutions.

''It's because this bill will protect the rights of owners and tenants and allow the PBT to implement enforcement on the premises,'' he said.

In a previous media report, the Ministry of Housing and Local Government (KPKT) said the act was enacted to protect the interests and rights of tenants and homeowners, which are currently only covered through the Contract Act 1950, which is general and not comprehensive.

The Residential Tenancy Act is reported to provide more comprehensive protection to tenants and homeowners and no longer need to go through long and complicated court procedures to resolve disputes between tenants and homeowners.

The cabinet approved the proposal to enact the act on 23 June 2021.

Date of Input: 08/03/2024 | Updated: 08/03/2024 | harnita_upm