The landlord of an apartment in Business Bay planned to sell the property but has had problems with the tenant. Jeffrey E Biteng / The National
The landlord of an apartment in Business Bay planned to sell the property but has had problems with the tenant. Jeffrey E Biteng / The National

Dubai landlord ‘duped’ by tenant over rent increase



I own an apartment in Business Bay and last year served an eviction notice on the tenant as I would like to sell the apartment. They were due to leave in May. However, a couple of weeks ago the tenants pleaded to stay. I told them I had to sell the apartment to adhere to Rera laws once an eviction notice has been served. However, they asked if they could pay more rent would there be an option to stay to which I replied yes in principle. They then asked me to email a proposal asking what it would take for me to rescind my vacating notice in exchange for them paying a higher rent. I did tell them it would be in excess of what the Rera calculator would say. I did email them a hypothetical proposal, but they now tell me they have taken advice from Rera, who say that as my "intention" seems to be to relet the apartment, they don't have to vacate any more. I want to sell the apartment and need them out to do this, but they claim Rera have told them that as a result of me sending a hypothetical offer of a new rent that my vacating notice is no longer valid. Please advise. RG, Dubai

It appears to me that you have fallen foul of your good intentions.

I think you need to explain to your tenant that you do not appreciate them taking advantage of your good nature and the only reason you put forward your offer of renewing a higher rent was due to their insistence. I cannot believe that they are now using this “offer” against you. I have never heard of the notarised eviction notice being null and void due to this. Your intention is to sell, so go ahead and put the property on the market. Explain to them that you are fully aware of the law and that you are not allowed to relet the property for a period of two years from the date of your tenant’s eviction.

You are correct that it should be easier to sell your property vacant rather than with a tenant in situ as this opens up the possibility of a quicker sale. I would definitely contact your tenant and rescind your renewal offer, explain how you feel let down and “duped” by them and that you are proceeding with selling the property as per your original plan.

Yesterday an agent came to our villa [one of six, in Umm Suqeim] and told us the properties had been sold to another party. They brought new contracts and asked us to come to the office and sign new cheques/contracts as the change of ownership had gone through exactly halfway through the current tenancy period. These new contracts are for six months only. When I moved in, the landlord issued new one-year contracts. I would like this to be the same this time as there is every likelihood we will be leaving in a year. I do not believe they can ask us to leave at the end of six months because they have not given us the one-year notice. We have been here for nine years and because they are older villas the rent has been attractive to us [ cheaper but certainly not cheap]. Can I insist on one year at the current price? MT, Dubai

I can understand the new owner wanting to have his details on the contract, but no other changes would be permitted as the buyer takes over the terms and conditions of your tenancy agreement from the old landlord. A 90-day notice before the expiration of the existing agreement is required to alter the new contract and even then these clauses have to be mutually agreed. This means the rent too, but only if the rental calculator states this is permissible. If you were not given the statutory 12-month written notice via a notary public or registered mail for the reason of selling the villa beforehand, the new owner cannot therefore regard your eviction as just because he is the new landlord.

Mario Volpi is the managing director of Ocean View Real Estate and has worked in the industry in the emirate and in London for the past 30 years. Send any questions to mario@oceanviewdubai.com.

The advice provided in our columns does not constitute legal advice and is provided for information.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

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Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

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The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.