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I Own an apartment in Dubai I’ve had tenants there for two years and they’re about to start their third year of their lease.
In the second year of my lease, my tenant asked me not to increase rent I agreed. This time, however, they made the same request.
This Real Estate Regulatory Authority (Rera) Rent Calculator The allowable rent increase for properties in the area is set to be between 13% and 32%.
I added an addendum to the rental contract One month’s notice required Make any changes to the terms and conditions of the agreement. The tenant also signed the document.
I gave a 23% rent increase notice 47 days before my contract expired.
However, my tenant does not agree to higher rent Because he claimed I didn’t give 90 days’ notice before the lease expired. what do I do? IM, Dubai
There are two things to consider in your case: firstly, your contract, and secondly, the provisions of Dubai tenancy laws.
Let’s first consider your rental contract. You have signed an agreement outlining agreed terms and conditions.
This is OK to a certain extent because you both agree to change the contract renewal and/or rescission agreement within a one-month period.
However, if one of the parties (in this case your tenant) decides not to follow what was agreed, the second point may come into play: what the law says is allowed.
Given that both parties agree, the fact that your contract violates what tenancy law allows is not necessarily a factor.
However, when one of the parties changes their minds, the alternative is for the tenant (or you) to file a lawsuit with the Rental Dispute Resolution Commission (RDSC) to reach an agreement.
A judge at the RDSC will decide whether your contract or the law takes precedence. It’s really a 50-50 situation, so I can’t give you any guidance on possible outcomes.
The same goes for rent increases, which are allowed given the rules of Rera’s rent calculator.
But it’s all about the timing of the notification. Once sorted, it will also determine if you can keep increasing the rent.
I live in a rented apartment in Dubai and am on the 11th month of my first 12 month contract.
Since we have no communication about a rent increase within the 90 days prior to renewal, we assume the lease will automatically renew. When we asked, we were told a new landlord was buying an apartment.
However, the new landlord contacted us saying they were moving in and gave us three months’ notice of eviction. This is via email.
Does the new landlord need to provide evidence that he wants to live in the property, or is he honestly assuming we’ll move out? British Columbia, Dubai
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If there is no communication to the contrary between the parties, the rental contract is automatically renewed on the same terms and conditions as before.
Let’s say you want to renew your lease for the coming year, and since the 90-day notice window has passed, the landlord is obligated to renew on the same terms and conditions as before.
Even if the property is sold, the new owner takes over the property and your lease agreement as-is, and can only change the contract with 90 days’ notice from the renewal date.
If the new owner buys the property for himself or an immediate family member, he must send you a 12-month eviction notice stating the reason. This notice must be sent by a notary public or by certified mail.
As a result, you will be entitled to live in the property for at least another year at the same rent and on the same terms and conditions as before.
Mario Volpi is Sales and Rental Manager for Engel & Volkers. He has been in the real estate industry for over 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for informational purposes only.Any questions please send to mario.volpi@engelvoelkers.com
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Updated: 10/27/2022 4:00am
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