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Landlords - getting tricky again?

Landlords - getting tricky again?

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Old Feb 26th 2013, 7:12 am
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Default Re: Landlords - getting tricky again?

Originally Posted by weasel decentral
Don't bring your negativity into this thread, this time there will be no bust.
My favorite quote from last time was "My friend, , they will not allow recession to happen, they have lot of control on the market, if they see price going down they will make rule to stop prices falling"
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Old Feb 26th 2013, 8:02 am
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Default Re: Landlords - getting tricky again?

Originally Posted by norsk
Everybody keeps saying the law is on the tenants side (and it probably is), but what are the absolute rights of the tenant?

Every article I have read on the topic either gives only half the information, hints at the details or refers to other sources (which of course is either not readily available or is equally vague). If the law is as straightforward as everyone keeps saying would it not be possible to put together a fact sheet and make this available to everyone who wants to know?

Some questions I have not been able to answer;

1. What happens if you cannot agree with your landlord on how much you should be paying at contract renewal? Subject to RERA guidelines
2. If neither you nor landlord do anything at the scheduled renewal point (usually 2 months prior to contract end) will your contract just roll over on the same terms? Law is very vague about this
3. If the contract does roll over (as per point 2) and your landlord refuses to sign a new one (with new dates) what effect does this have on ejari?
4. What are the notice periods (as per the law) for termination of the contract by the landlord? (My understanding is that they vary according to scenario, but where is the burden of proof that a particular scenario is applicable to your situation?) Depends on wording in the signed contract
5. Will the landlord need to raise the case with RERA if he wants more money and you don't agree (or is it your problem as the tenant)? He is not obliged to renew if rent is out of whack with guidelines - again depends on contract wording and notice given.
6. Can the landlord throw you out as long as you do not break any of the clauses relating to your responsibilities as a tenant (stated in contract)? Depends on contract wording, but they are not obliged to renew if proper notice given and you refuse to pay market rent.
Answered as much as I can without speaking to RERA, based on what I've previously been told. (Life's too short to spend any more time speaking to govt depts than I already do.)

It doesn't help that you often get different answers about the law when speaking to different people in the same ministry. Their employees are often not as well versed as they should be.

I agree with mikewot's comment earlier about standing up to LLs. Too many have got away with too much over the years, but the law is no longer on their side. We need to stand up to bullies.

the_red_sheep It is against the law for a LL to refuse to be responsible for the maintenance of a building. While good and furnishing are subject to agreement and whatever is signed in the contract.
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Old Feb 26th 2013, 8:17 am
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Default Re: Landlords - getting tricky again?

Originally Posted by norsk
Everybody keeps saying the law is on the tenants side (and it probably is), but what are the absolute rights of the tenant?

Every article I have read on the topic either gives only half the information, hints at the details or refers to other sources (which of course is either not readily available or is equally vague). If the law is as straightforward as everyone keeps saying would it not be possible to put together a fact sheet and make this available to everyone who wants to know?

Some questions I have not been able to answer;

1. What happens if you cannot agree with your landlord on how much you should be paying at contract renewal?
2. If neither you nor landlord do anything at the scheduled renewal point (usually 2 months prior to contract end) will your contract just roll over on the same terms?
3. If the contract does roll over (as per point 2) and your landlord refuses to sign a new one (with new dates) what effect does this have on ejari?
4. What are the notice periods (as per the law) for termination of the contract by the landlord? (My understanding is that they vary according to scenario, but where is the burden of proof that a particular scenario is applicable to your situation?)
5. Will the landlord need to raise the case with RERA if he wants more money and you don't agree (or is it your problem as the tenant)?
6. Can the landlord throw you out as long as you do not break any of the clauses relating to your responsibilities as a tenant (stated in contract)?
I have answered all of these questions time and time again quoting links to govt. pages and details of RERA contacts. I think Rowell and Scamp have some links on back threads of theirs.
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Old Feb 26th 2013, 8:26 am
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Default Re: Landlords - getting tricky again?

Here darling ....

"Popular belief is that the landlord has all the rights," said Ludmila Yamalova, a managing partner at the legal consultancy HPL Yamalova & Plewka JLT. "But the law clearly protects tenants."

Rera prohibits raising the rent by more than 5 per cent if the rent is more than 25 per cent below the market rate. Landlords must also give 90 days' notice of any proposed rent increase, and the rent may be raised only if both parties agree. If they do not, the landlord must ask Rera for a review.

"The notion that the landlord can kick out the tenant and fix an arbitrary rent at their own discretion as they see fit - that's incorrect," Ms Yamalova said.
"Basically, the tenant does not have to do anything. The default rule is that the same terms of the original contract automatically apply on renewal," she said.
"If the tenant does not agree and the landlord insists on the increase then the landlord must take it to the Rent Committee, and whoever files with the Rent Committee has to pay a 3.5 per cent filing fee."
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Old Feb 26th 2013, 8:31 am
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Default Re: Landlords - getting tricky again?

Originally Posted by Meow
Answered as much as I can without speaking to RERA, based on what I've previously been told. (Life's too short to spend any more time speaking to govt depts than I already do.)

It doesn't help that you often get different answers about the law when speaking to different people in the same ministry. Their employees are often not as well versed as they should be.

I agree with mikewot's comment earlier about standing up to LLs. Too many have got away with too much over the years, but the law is no longer on their side. We need to stand up to bullies.

the_red_sheep It is against the law for a LL to refuse to be responsible for the maintenance of a building. While good and furnishing are subject to agreement and whatever is signed in the contract.
I get your answers Meow and they are sensible, but still there is a vagueness about how this is all works in the real world hence why people bend over backwards when the LL starts pushing instead of telling him/her to suck an egg.

Consider the following scenario;

LL wants more money as according to his dubizzle searching similar properties are going for more than what you have been paying him. The RERA Rental Increase Calculator (http://www.dubailand.gov.ae/English/...culatorEN.aspx) says that LL is not entitled to an increase, but he does not care about this and continues pressuring you to pay.

It is my understanding that it is up to LL to go to RERA at this point.

What happens if he doesn't go to RERA and also refuses to sign a new contract on the existing terms? Will you as the tenant have to go to RERA (paying a 5% fee for the pleasure)? If so, then this effectively means that the landlord can always ask for a 5% increase and it will be in your interest to accept. Right?
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Old Feb 26th 2013, 8:37 am
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Default Re: Landlords - getting tricky again?

Originally Posted by norsk
LL wants more money as according to his dubizzle searching similar properties are going for more than what you have been paying him. The RERA Rental Increase Calculator (http://www.dubailand.gov.ae/English/...culatorEN.aspx) says that LL is not entitled to an increase, but he does not care about this and continues pressuring you to pay.

It is my understanding that it is up to LL to go to RERA at this point.?
Correct, the LL must go to the Rent Committee and explain to them why he feels he's entitled to a rent increase higher than RERA say he's entititled to.
Originally Posted by norsk
What happens if he doesn't go to RERA and also refuses to sign a new contract on the existing terms? Will you as the tenant have to go to RERA (paying a 5% fee for the pleasure)? If so, then this effectively means that the landlord can always ask for a 5% increase and it will be in your interest to accept. Right?
You can raise a case with RERA, it costs 3.5% of the rental. When you win you simply deduct that from the rent and give the LL the balance.
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Old Feb 26th 2013, 8:43 am
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Default Re: Landlords - getting tricky again?

Originally Posted by norsk
Some questions I have not been able to answer;

1. What happens if you cannot agree with your landlord on how much you should be paying at contract renewal? LL has to have informed you 90 days prior to contract renewal that he wants a change to the contract (including rent). Law of Dubai.
2. If neither you nor landlord do anything at the scheduled renewal point (usually 2 months prior to contract end) will your contract just roll over on the same terms? All contracts are renewable on exactly the same terms unless your contract clearly stipulates NON RENEWABLE. If the LL wants to change the terms 90 days notice required.
3. If the contract does roll over (as per point 2) and your landlord refuses to sign a new one (with new dates) what effect does this have on ejari?Since you're already registered on your current contract you can raise a case with the Rental Committee.
4. What are the notice periods (as per the law) for termination of the contract by the landlord? (My understanding is that they vary according to scenario, but where is the burden of proof that a particular scenario is applicable to your situation?)12 months notice required if the LL wants to evict and it can ONLY be for a very limited number of reasons. Law of Dubai.
5. Will the landlord need to raise the case with RERA if he wants more money and you don't agree (or is it your problem as the tenant)? His problem if he wants more than RERA say he's allowed.
6. Can the landlord throw you out as long as you do not break any of the clauses relating to your responsibilities as a tenant (stated in contract)?No

http://www.dubailand.gov.ae/english/...s/Law%2026.pdf

http://www.dubailand.gov.ae/english/...s/Law%2033.pdf

Last edited by mikewot; Feb 26th 2013 at 8:45 am.
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Old Feb 26th 2013, 8:43 am
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Default Re: Landlords - getting tricky again?

Originally Posted by Patsy Stoned
Here darling ....

"Popular belief is that the landlord has all the rights," said Ludmila Yamalova, a managing partner at the legal consultancy HPL Yamalova & Plewka JLT. "But the law clearly protects tenants."

Rera prohibits raising the rent by more than 5 per cent if the rent is more than 25 per cent below the market rate. Landlords must also give 90 days' notice of any proposed rent increase, and the rent may be raised only if both parties agree. If they do not, the landlord must ask Rera for a review.

"The notion that the landlord can kick out the tenant and fix an arbitrary rent at their own discretion as they see fit - that's incorrect," Ms Yamalova said.
"Basically, the tenant does not have to do anything. The default rule is that the same terms of the original contract automatically apply on renewal," she said.
"If the tenant does not agree and the landlord insists on the increase then the landlord must take it to the Rent Committee, and whoever files with the Rent Committee has to pay a 3.5 per cent filing fee."
I read this article before when you posted it, and whilst it is pretty good at answering most of the issues it doesn't actually state what happens in a dispute other than that RERA will intervene at a cost of 3.5% (I said 5% in my other post as I thought that's what it was) to whoever raises the case. In a western country having a lease roll over is not really a problem, but here in UAE it could potentially be an issue due to lack of possibility to register the lease for ejari and the requirement to have one of these for certain visa purposes.

The law may well be on the side of the tenant, but due to no official guidelines being issued LLs are trying to force tenants to pay more (when they shouldn't)...
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Old Feb 26th 2013, 8:46 am
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Default Re: Landlords - getting tricky again?

Originally Posted by Maxima

I cant imagine a more lopsided rental market than Dubai (Doha maybe?)
Quite the opposite. 12 months cheques are the norm and if you get terminated so does your rental agreement. Dubai could learn a lot from Doha on this.
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Old Feb 26th 2013, 8:51 am
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Default Re: Landlords - getting tricky again?

Thanks Mike.

Just to be clear I'm not only asking these questions for myself (although I expect to need the information on my next renewal), but getting all this info out in the open through a thread is good for anyone who comes across it.
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Old Feb 26th 2013, 9:18 am
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Default Re: Landlords - getting tricky again?

Originally Posted by norsk
Thanks Mike.

Just to be clear I'm not only asking these questions for myself (although I expect to need the information on my next renewal), but getting all this info out in the open through a thread is good for anyone who comes across it.
Absolutely. I have been asking LOTS of questions on here on my behalf and others in my estate. Had a lot of very useful answers, especially from Patsy Stoned (thank you ) I intend to put together an FAQ based on everything I've learnt with the relevant sections of the law when I've got a minute to myself (new project went live last week, sorry to everyone coming into Dubai who have been twirling around the hold a lot longer than normal). I was going to put it out for everyone on my estate and guys at work but it might be useful as a sticky on here as well, I'll have a word with a MOD.
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Old Feb 26th 2013, 9:18 am
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Default Re: Landlords - getting tricky again?

RERA will give you advice, based on your lease contract and the intricacies of Dubai Real Estate Legislation. They will be able to tell you whether you have a justifiable case against your landlord. If you do, and you want to make an official complaint, you will need to go to the RENT COMMITTEE.

RERA is on the First Floor of the Lands Deparment which is a couple of blocks inland on Baniyas Street - ie the same road as the Municipality Building. Head through the right hand door when you get to the top of the stairs on the first floor. The other side are all officials' offices.
The rent committee is found in the Municipal Building next to the Radisson between the Dhow wharfs and Union Square. You will find 3 buildings there opening up onto a small square with a fountain/pool in the middle. The Rent Committee is on the same side of the square but across the fountain from Gloria Jeans. It is diagonally opposite the Cashier's Offices. If you ultimately need a typing centre there are plenty around Union Square.
A recommended person to speak with at the Rent Committee is Mr Mansoor, he's in office 13 ground floor. He's very helpful and will let you know where you stand.


To lodge a complaint through the Rent Committee you will need to pay a fee which is a percentage figure of 3.5% of your total per annum rent. You will also need to have supporting paperwork (4 copies of each page) which includes, but is not limited to -

* Your original lease (which they will keep until your case is resolved)
* Any addendums to your lease that are not in Arabic will need to be translated by an accredited legal translator on letterhead.
* Your formal complaint typed in Arabic according to a specific template which the Rent Committee will give you (in Arabic, so you will need a translator to translate the template before you even fill it out).
* The tenant's visa and passport
* Clear documentation of the premises type, number and street
* Copies of all documentation supporting your complaint.
* The receipt for the payment of the complaint fee (3.5% of your value of the lease)

(NB if you are a landlord or owner, you will need a whole lot more documentation eg title deed, current tenancy contract or management contract, etc)

Once this is submitted they will give you a time and date for a hearing and you will need to attend this and any subsequent hearings until a resolution is made. It is highly unlikely, given the process and the paperwork required, that you will get the preliminaries completed within one working day.

Note: If the complainant wins their case, the value of their registration of complaint fee will be refunded by the defendant in the wrap up, but this can take some time depending on how long the case goes for and how unscrupulous the defendant is.
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Old Feb 26th 2013, 6:12 pm
  #28  
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Default Re: Landlords - getting tricky again?

I guess this is within the area of this thread, here is a letter I sent my landlord that was threatening to initially increase the rent and when I rebutted this he then tried to evict with 2 weeks notice as he wanted to move his family in.

He backed down and we are still in the flat 2+ years later.

If this helps anyone, great. (obviously redacted in terms of details - also this was a year or 2 ago, perhaps things have changed, but it worked for me)

Dear Mr xxxxxx,

I received your letter dated xxxxxxx where you state you will not renew the tenancy agreement as you may possibly sell the apartment xxxxxx, this contradicts your offers, via your Estate Agent xxxxxx, of two days ago to renew the agreement for a further period of one year for either xxxxxx dhs paid in two cheques or xxxxxxx dhs payable in one cheque.

Please be aware that I have taken legal advice on this matter and spoken to RERA directly. I would like to advise you that under Dubai Law and as per RERA rules what you are attempting to do is illegal. Both Landlords and Tenants have rights under various laws and decrees.

The Landlord has the right to sell the apartment and can ask the tenant to vacate - although to do this correctly the Landlord must give twelve months notice. Please refer to Law No. 33 of 2008 Amending some provisions of Law No. 26 of 2007 Regulating Relationship between Landlords & Tenants in the Emirate of Dubai:-

Article (25) 2. Landlord may demand eviction of tenant upon expiry of tenancy contract limited to the following cases:

d. If the owner of the property wishes to sell the leased property. And for the purpose of clause (2) of this Article, landlord must notify tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.

Further and as I already notified you in my email to your Estate Agent xxxxx, your request to increase the rent also contravenes Dubai Law. Under Dubai Law there is no increase in rent allowed as " rental increases can only occur if the property was more than 25% below the average index price" - As per RERA Index the rent of xxxxxx dhs for xxxxxxxx is not more than 25% below the average index.

Please go to http://www.rpdubai.ae/rpdubai/rental...ator.do?lang=0 to confirm this.

Everything I have stated above is as per Dubai Law. You have no right to either increase the rent or evict us with less than twelve months notice and this can be defended.

In my conversation with RERA they confirmed the following and also suggested that if you have any questions you are also free to call them to confirm - RERA number is +971 - 4 - 222 - 1112

• If the rent calculator on RERA website says no increase, then no increase is allowed.
• If the Landlord wants to sell he needs to give 12 months notice of eviction
• According to RERA the Landlord is obliged to renew the agreement for same rent for a further 12 months.

With all of the above said, I do not wish to be unreasonable and I would not like to have to resort to RERA and legal means to rent this apartment for one more year.

Please note - should you not agree to this I will have no option other than to proceed with RERA where we will win as the law is clear. In this case you would be liable for the costs which are set at a minimum of 5% of annual rent and we would also not be subject to any rent increase. So in this case we would still be in the apartment and you will receive xxxxxxx dhs although you will have to pay out a minimum of xxxxx dhs to RERA as well as the time involved with the RERA process.

I hope that you will agree to abide by the laws of Dubai and agree to one further year agreement without having to go through the bureaucracy and expense of a RERA committee.
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Old Mar 4th 2013, 5:26 am
  #29  
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Default Re: Landlords - getting tricky again?

Interesting development over the "12 months notice to quit because I'm moving in law". Neighbour had that problem and spoke to RERA. Seems that RERA are now advising LL to make a non renewable 12 month contract to get around the issue.
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Old Mar 4th 2013, 5:43 am
  #30  
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Default Re: Landlords - getting tricky again?

Any happy news, Mike?
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