When it comes to the changing of a landlord, the terms and conditions of an existing tenancy contract remains the same. Getty
When it comes to the changing of a landlord, the terms and conditions of an existing tenancy contract remains the same. Getty
When it comes to the changing of a landlord, the terms and conditions of an existing tenancy contract remains the same. Getty
When it comes to the changing of a landlord, the terms and conditions of an existing tenancy contract remains the same. Getty

Homefront: 'Will I be compensated for being asked to leave my flat early?'


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  • Arabic

My tenancy contract is valid until August 14 this year but the owner sold the apartment and sent us an eviction notice.

The new owner sent us a notice asking us to vacate on March 31, 2022. We agreed to the notice but added a paragraph that in case we decide to vacate, we must be reimbursed for the remaining duration of the tenancy contract.

Am I obliged to continue paying monthly rent to the previous owner and ask the new landlord to reimburse us instead? I must be reimbursed for being flexible and agreeing to vacate the apartment about six months before the end of the contract. AL, Dubai

When a property is sold and is subject to a tenancy agreement, the new buyer becomes your landlord and the terms of your existing signed agreement with the previous landlord remains the same in its entirety.

When it comes to reimbursements, you will have to wait to see who is holding your deposit or current rent. Has the previous landlord already forwarded the money to the new landlord?

With reference to breaking the tenancy agreement early, you should not only talk about reimbursement of your unused rent but also request some form of compensation.

When a tenant leaves early by their choice, the landlord often is compensated by an amount equal to one or two months’ rent. The same should apply to a tenant if they are being asked to vacate early. If, however, this is your choice, then no compensation is required.

I am interested in renting a property in Dubai from a landlord, furnishing the unit and then renting it out as a short-term holiday home.

I will offer the landlord 10 per cent extra rent in return for their permission to rent it to other guests.

When it comes to breaking the tenancy agreement early, you should not only talk about reimbursement of your unused rent but also request some form of compensation
Mario Volpi,
sales and leasing manager at Engel & Volkers

Can you see any reason why this would not work? How do I obtain the correct permissions?

Should I approach landlords directly via social media advertisements or through an agency? JO, Dubai

Your idea to sub-let your rented property is plausible. The key is convincing the owner to agree in writing to your proposal because it is illegal to sub-let without their permission.

Offering the landlord only 10 per cent more than the annual rent may, however, not be enough to secure their permission. Renting a unit on a daily or weekly basis can be quite lucrative. To receive the landlord’s approval, you could consider increasing your initial offer.

After you have received the owner’s approval, register and have the property approved by Dubai Economy and Tourism.

This can be done online. The documents required are the property’s title deed, a signed copy of the landlord’s Emirates ID, trade licence if the landlord is a company, along with the Emirates ID or passport copy of the authorised signatory.

You will also need to produce a recent Dewa bill and tenancy agreement for the individual tenant. The tenancy agreement has to be registered with Ejari.

The fee is Dh1,500, plus a Dh10 knowledge fee and a Dh10 information fee.

The property will be graded as either standard or deluxe, depending on the services and amenities offered, and this will determine the cost you can charge on a daily, weekly or monthly basis.

In terms of finding landlords to propose this idea to, it might initially be easier to check out “for rent by landlords” posts on property websites. However, real estate agents can also assist in your search for the right property as they are incentivised by a commission.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com

RESULT

Esperance de Tunis 1 Guadalajara 1 
(Esperance won 6-5 on penalties)
Esperance: Belaili 38’
Guadalajara: Sandoval 5’

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.”

Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3ENadeera%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Abu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3ERabih%20El%20Chaar%20and%20Reem%20Khattar%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3ECleanTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%3C%2Fstrong%3E%20About%20%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHope%20Ventures%2C%20Rasameel%20Investments%20and%20support%20from%20accelerator%20programmes%20%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%2012%3C%2Fp%3E%0A

COMPANY PROFILE

Founders: Sebastian Stefan, Sebastian Morar and Claudia Pacurar

Based: Dubai, UAE

Founded: 2014

Number of employees: 36

Sector: Logistics

Raised: $2.5 million

Investors: DP World, Prime Venture Partners and family offices in Saudi Arabia and the UAE

MATCH INFO

Jersey 147 (20 overs) 

UAE 112 (19.2 overs)

Jersey win by 35 runs

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Updated: January 13, 2022, 4:00 AM