I understand the Abu Dhabi Government has abolished the 5 per cent rent cap and that rents will now be decided according to the building condition and the area. My existing rent is Dh71,500 as per the renewal I signed for six months with the building’s landlord in July 2013. Now the renewal is due this month and my landlord has offered me Dh70,000. I also know there were two flats rented out in the same building for Dh60,000 in October 2012. The building’s landlord renewed them with 5 per cent additional rent in November 2013 after the abolition of the cap, later saying he didn’t know that the rent cap has been abolished. Now he says he wants the rent for the full building to be Dh70,000. Can I go to court and ask why can’t I pay the same as the two other tenants paying Dh63,000? KSM, Abu Dhabi
Now that the Abu Dhabi Government has removed the 5 per cent rental cap any tenant’s future rent is at the discretion of his/her landlord. Relationships will now form a crucial factor as to future increases and the amount of increase is unfortunately up to only one party. In your case the landlord was clear that he was not aware that the rent cap had in fact been removed when negotiating with the other two flats. I guess that had he known, he would have imposed the same increase as he is now looking to you for.
Unfortunately, I think you would be wasting your time and money taking your landlord to court as the law is now on his side because of the abolition of the cap.
My advice is to either agree to his increase or give notice and find another property (if this increase is above your budget). I know it does not seem to be fair agreeing to an increase higher than others but remember that moving also attracts other charges and hassles such as agents’ fees, moving costs, painting and so on, so it might be better to reluctantly swallow the increase at this time.
A landlord in International City, Dubai has handed over an eviction letter in a proper way (notarised and delivered to his door via Dubai legal courts and courier) to sell the apartment. Please note the court notice was posted by legal courier on the tenant's apartment's door because after multiple attempts they did not get an answer from the tenant. Now the owner is trying to sell the apartment but many potential buyers are shunning a purchase because it is occupied and they say they would buy if it was vacant. Is posting the legal notice on the door considered as delivered to the tenant or not? Secondly, does the landlord have the right to evict the tenant when the 12 months' notice period has matured? GS, Dubai
If a 12 months’ notice document has been notarised and posted on the door it is arguable that the landlord has delivered the notice to the tenant, but it does not mean the tenant has read it.
Under normal circumstances a registered mail method of delivery would require the recipient to sign for such a document. This is a grey area as the tenant could argue that no such notice was ever there and the landlord unfortunately would have no proof that the tenant had seen the notice owing to the fact it is possible it may have been removed by a third party.
The 12-month notice period will commence once a buyer is found because merely placing a property on the market does not obviously constitute a sale.
Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years’ of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.com
