Mario Volpi advise on the latest property issues in Dubai. Randi Sokoloff / The National
Mario Volpi advise on the latest property issues in Dubai. Randi Sokoloff / The National

Mario Volpi: Dubai tenant told to pay bills, rent for two apartments at the same time



I have been living in a one-bedroom apartment in Dubai for three years. Then we shifted to a two-bedroom in the same building with the same landlord on June 1 last year, handing over the keys of the previous flat on the same day. We applied for our final utility bill on June 3 and paid it on June 16. When we asked for our security deposit of Dh3,000, the landlord’s office told us they would only be paying us Dh167. They said they had deducted the painting and maintenance charges of around Dh1,000 as well as the remaining 16 days rent for the month of June. This, they say, is because we did not pay the electricity bill until June 16 even though the electricity was disconnected on June 3. Our next contract in the same building started on June 1. So how can one landlord charge us for two apartments between June 1 to June 16? Can I approach the regulatory agency in this case? AS, Dubai

You can speak to the Real Estate Regulatory Agency but it will most likely refer you to the rental dispute settlement committee (RDSC). To file a case with RDSC will cost 3.5 per cent of the annual rent. You can see that it is not economically viable for you to file a case. My advice would be to speak with the landlord and negotiate an agreement. I can see both sides of the argument but it does seem too small an amount to fight over given you are still the tenant of the landlord/owner of the present apartment you are living in. Building good relationships is of vital importance and while I understand you are annoyed or feel cheated, try to remedy the situation by negotiating for the sake of future relations.

I have been renting a villa in Mirdif since 2010. Every February without fail (three months before the contract ends), I have contacted the landlord, agreed on the rent, and within a few days received the contract. This year, things were slightly different. I contacted him in February to discuss a six-month contract instead of one year and he agreed. However, a few days later I called him again and said I had changed my mind as my plans to leave the UAE had been delayed until 2018. I told him I would therefore like to renew for the full year (May 2017 to May 2018) and that May 2018 would likely be the date I will vacate the villa and permanently leave the UAE. He agreed to this and I asked if he could send the new contract so that I can sign it and provide him with the four cheques. I have still not received the contract and have contacted him regularly to follow up; he consistently says he will send it over as soon as possible. The current contract ends on May 10. What are my options if by May 10, I do not receive the contract? Additionally, my family’s residency visas are up for renewal in June. If I still do not have the contract by then, I would also not have an Ejari registration, so how would I go about obtaining it? JA, Dubai

Given your past good relationship with your landlord, I would not worry too much because there would appear to be no reason why the landlord will not come forward with the contract in time for the renewal. Having said this, there is also another solution I can offer you. You can arrange the contract yourself (via an agency) and lodge the contract and rental cheques with Rera at the Land Department. They will contact the landlord on your behalf to request he picks up the documents etc. I don’t think you will need to do this but just in case, this way you can get your contract by renewal date. Don’t forget that a contract automatically renews anyway (unless otherwise agreed) even if there is no new supporting documentation.

Mario Volpi is the chief sales officer for Kensington Exclusive Properties and has worked in the property industry for over 30 years in London and Dubai. The opinions expressed do not constitute legal advice and is provided for information only. Please send any questions to mario.volpi@kensington.ae

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Going grey? A stylist's advice

If you’re going to go grey, a great style, well-cared for hair (in a sleek, classy style, like a bob), and a young spirit and attitude go a long way, says Maria Dowling, founder of the Maria Dowling Salon in Dubai.
It’s easier to go grey from a lighter colour, so you may want to do that first. And this is the time to try a shorter style, she advises. Then a stylist can introduce highlights, start lightening up the roots, and let it fade out. Once it’s entirely grey, a purple shampoo will prevent yellowing.
“Get professional help – there’s no other way to go around it,” she says. “And don’t just let it grow out because that looks really bad. Put effort into it: properly condition, straighten, get regular trims, make sure it’s glossy.”

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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.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

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

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

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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