dubairookie

I was wondering whether anyone has any advice on what to do and whether they think we have a good case...

We are buying a villa in the Lakes, have handed over the deposit cheques and it should be signed over within a week or so. We purposely bought this villa because the current tenants lease expires end of Jan and we wanted to be able to give them notice and move in 1st Feb.

Have since found out that the current tenants have no intention of moving out as they pay very little rent and wouldnt be able to afford a rent increase (who would!?!). Incidently they pay less rent than we currently pay.

Get this, we dont actually get the current tenancy contract until the sale is finalised but are hearing rumours of a renewal clause in most of the lakes tenancy contracts. Prior to buying we checked our own tenancy contracts from current and previous rental which stated only 2 months notice required before eviction so we assumed theirs would be the same and we would be ok.

I am now very worried, are we going to be able to get them to leave? We geniuinely need this villa to live in since we didnt renew our own rental (as we were buying). Not only that but we have a toddler and I am pregnant with the next baby booked into being born the day after their tenancy expires and they have to move out - cutting it fine I know but I didnt think they could object with a fair amount of notice

Has anyone had any similar experiences? What are our chances of getting our home with the rent committee do you think? I am hearing that they always favour the tenant and when I rang and spoke to them they just told me they dont know, it could go either way. We havent actually given them notice yet as wasnt sure how to proceed with all this. I am worried we will be homeless with 2 kids and a maid. They have been in the property for some time, 4 or 5 years I think so its not like we are trying to kick them out in their first year. We dont own any other property in Dubai and are not trying to kick them out to raise their rent.

Thanks for listening x

beebee

Give the tenants their notice now.. but you should have requested a tenancy vacate letter before you bought.

Confucius

Rookie of Dubai, as long as you'll move in and are the owners then there's no issue...

IndieG

Afraid answer is not as black and white. Since this excuse has been used so frequently to increase rents, genuine cases like Rookie's might be viewed suspiciously by the RC. If there is "renewal' clause, then am afraid, a year's notice at minimum. I suggest you speak to the RC and seek their advice.

Incidentally, didn't you use a lawyer when buying this property?

Fastfunker

I have been looking into the exact same situation in the Lakes myself recently. In fact, I wouldn't be suprised if we have been considering the same villas as you as we wanted to find something where the tenancy renewal came up in Jan so that we could move in (are we talking about properties in Deema 1 here?). And yes, the renewal clause is not a rumour - Emaar have confirmed it to me directly!

I have spoken at length to both Emaar and Hamptons. Emaar offered to give me the mobile numbers of the tenants currently leasing the two properties I was interested in buying to see if they could be "persuaded" to move out and not renew (so that we could move in). But there are no guarantees. They could say "yes", and then change their minds, and the rent commitee would probably side with them. Every single villa I am interested in buying (on the primary market) in the Lakes is currently leased, and the tenants all have 1st refusal on whether or not they wish to extend their leases irrespective of whether I purchased the place and wanted to move in myself! It's for this reason that I am now looking at places on the secondary market. You pay more money (transfer and agents fees) but at least you get to move in!

I also asked Hamptons if they are selling any Lakes villas without tenants. They told me that they were, but that they go very quickly as Emaar have a rule whereby for every vacant villa they sell, they have to sell an additional 4 with tenants. It's an absolute minefield. :curse:

Confucius

Then it is not a level-playing-field regardless...

expat.brat

More evidence in favour of scrapping the rent laws..

dubairookie

Thanks for all your advice...

I did contact the RC on several occasions and each time they basically told me they dont know. I asked if it was likely to be extended for a year and again was told that they look at each case differently and they dont know. They basically told me I have a good case but it could go either way and that I should come up with an agreement with the tenants. (tried that and they arent budging) I dont know of any other country where it is up to the tenants to decide when the owner can move their family into a house they have bought. Its ridiculous.

Everywhere you read conflicting stories and it seems the RC decides the case on how they feel on the day. We have nothing to lose (since we have essentially bought it) and so will give it a go at RC, was just wondering if anyone was in a similar situation and how it went?? I have read of several getting 6 month extensions, some a year, some 2 :curse: but I also have a friend who went to RC and heard a similar case where the tenants were told to move out straight away. I guess its not cut and dry and thats what makes the whole thing so frustrating, you have to leave it up to the people on the day.

And no we didnt get a lawyer as we didnt think we needed one but we will be now. Know of any good ones??

Thanks again for listening

shiva

1.) get a lawyer should already have had one but hey ho maybe better late than never
2.) the rent committee always favour the tennant so unless you get very very lucky or can come to an agreement with the tennant, forget it. The usual notice period from the rent committe is 1 year from date of contract renewal but can be as high as 3 years.

IndieG

Good Luck rookie - sorry to hear of your bad experience. Hopefully the RC will decide in your favour.

I hope you haven't taken a mortgage for the property or if you have, the current rent at least covers the mortgage/outgoings.

I also heard that the RERA is in favour of scrapping the rent laws (RC not happy though) - effectively giving all landlords a free hand to increase rents to "market rates". Not good news for tenants - most low-middle income groups will pack up and leave - I'm sure.

Let us know how you get on...

Border Reiver

The RC does indeed decide each case on the day, and the results seem to depend on which side of bed they got out of. They are not legally trained, are certainly not judges and yet they have the power of a court. The whole thing is a sham and the quicker the RERA get rid of it- and the existing rent "laws" such as they are- the better.

Now that I've finished ranting, be warned that a lawyer will not be a cheap option at this stage and (in my humble opinion) from what I understand of the contracts at the Lakes there is a guaranteed renewal clause and your chances of getting the tenants out are somewhere between remote and nil, probably nearer the latter. Your best hope is that the rent cap will be scrapped and you can put the rent up to a realistic level in January.

If you need a recommendation for a lawyer PM me and I'll pass one on but be warned it cost me 2,000 Dhs just to get a simple non-renewable clause put into a tenancy contract. I believe that if you want to get a lawyer to go to the rent committee with you it is a minimum of 10,000Dhs.

Oh, and welcome to being a landlord in Dubai.

Inselaffen

You would be in the same position in the UK. If a tenant has a renewal clause in a lease then just because the freehold is sold it does no mean that the new owner can just ignore the terms of the lease.

dubairookie

Hopefully it will all go according to plan and Ill be back with good news. Failing that I will have no option to hike up their rent to cover ours. I have tried with these people and they are not coming to the party to try and reach any sort of agreement. Too late to pull out of contract, its all gone through and we are stuck with it now, dodgy tenants and all!

BR can you private message me? I have been trying to PM you but it wont let me for some reason.....

dubairookie

Really? That is surprising. Then tenants can just go on renewing their tenancy for the rest of their lives and there is nothing the landlord can do about it? How do people get their properties back??

IndieG

But well worth it. If you've spent millions on property a few thousands spent on a good lawyer is definitely worth it.

Rookie - you need to post 5 times before you are allowed to send/receive PMs