KUWAIT CITY, June 30: The Kuwait Credit Information Network Company also known as CINET, is considering entering the real estate sector by offering services to property owners that would allow them to electronically verify the financial reliability of prospective tenants, reports Al-Jarida daily. The discussions have centered around the company’s potential entry into this sector contingent upon the organization of rental operations and the approval of a unified electronic rental contract.

This streamlined approach would facilitate CINET’s ability to provide its services efficiently, a departure from the current practices. The real estate sector is highlighted as a primary target for CINET due to its significant impact on both individual and corporate incomes. The proposed service would enable landlords to assess the financial stability of tenants, aiding in informed decisions regarding lease agreements. It is viewed as a beneficial option for property owners who face challenges such as irregular rent payments due to tenant defaults.

Proponents argue that such a service could help regulate and stabilize the market. However, concerns have been raised regarding the practical implementation of this idea. Questions linger about how business owners, reliant on sales for rental payments, would be assessed for financial solvency. Some specialists in the real estate field caution that the current chaotic state of the sector may not support the immediate application of such initiatives.

They emphasize the necessity for regulatory frameworks and updated laws to keep pace with global developments in the industry. Advocates of the unified electronic lease contract see it as a crucial first step towards organizing the sector. This standardized contract format is designed to prevent common abuses such as inflated rental values used for mortgage purposes or clauses inserted to favor landlords.