A law is in place to stop landlords from evicting tenants and renting out the unit to someone else to secure a higher rent. Getty
A law is in place to stop landlords from evicting tenants and renting out the unit to someone else to secure a higher rent. Getty
A law is in place to stop landlords from evicting tenants and renting out the unit to someone else to secure a higher rent. Getty
A law is in place to stop landlords from evicting tenants and renting out the unit to someone else to secure a higher rent. Getty

UAE property: 'How can I stop my landlord from re-letting a unit?'


  • English
  • Arabic

Question: My landlord notified me via email about a rent increase on January 8 and the tenancy agreement expires on March 31.

After going back and forth over email, we settled for an amount. But the landlord sent me a 12-month eviction notice, citing his desire to sell the property.

Even though I agreed to the rent increase over email, can I now refuse to accept it because the notice was served less than 90 days before contract expiry?

I have yet to sign the renewal tenancy agreement and wish to renew it according to the current rental amount.

I also want to place a block on the Ejari of my landlord’s apartment.

Is it possible to do so immediately after I move out or should I wait for the landlord to rent out the unit to another tenant at a higher price? VC, Dubai

Answer: Although you have agreed to the rent increase, technically, you could still contest it as the communication for changing the contract was done outside the 90-day window.

If the owner does not agree to change again, stating that he thought an agreement was in place, you will have no alternative but to file a case at the Rental Dispute Settlement Committee (RDSC) in Dubai.

I cannot confirm what the outcome would be, given that the UAE's laws are not set on precedent.

The judge could find in your favour, or the fact that you had previously agreed could work against you.

You need to explain to the landlord your reasons for no longer agreeing to the rent increase. The best option would be to work out a mutually acceptable agreement.

Under Law 33 of 2008, landlords are not allowed to send a 12-month eviction notice to an existing tenant, saying he or his first-degree next of kin intend to move in, even though they plan to re-let the property at a higher rent.

By evicting an existing tenant under these circumstances, a landlord cannot re-let the property for a period of two years.

However, when the eviction is for the reason of selling, the law is silent as to the ability to re-let going forward.

Should the property not be sold, any decision as to what happens next will be based on what a presiding judge at the RDSC states is his will.

You will have to test the court system by filing a case at the RDSC to see if the judge will offer you compensation for being evicted under the grounds of selling, but the owner then goes on to re-let it again.

I would suggest you contact Ejari to understand what can be done with future Ejari contracts in this situation.

Clearly, the law is in place to stop landlords from evicting tenants unnecessarily to gain the maximum rent by leasing the place to someone else.

However, further investigation and consideration is also a play when deciding what to do.

Q: My previous landlord evicted me because he wanted to renovate the villa and then he moved in to the property.

My current landlord has been issuing notices of sale to most of his tenants in the community, but there are no obvious signs of selling.

I am facing the prospect that I may move out later this year. If I resist and continue to stay, is it easy for the landlord to demonstrate that he is selling by providing a simple contract in partnership with a broker?

Can I win my case if the property is rented within two years? However, the law is not punitive. While it appears to protect the tenant, it only provides compensation for costs incurred.

If the tenant’s compensation includes only moving and storage costs, it is much less than the increase in rent that landlords are now demanding.

Please advise as to what I should do. OT, Dubai

A: The first thing to point out is that the law in the UAE is not set on precedent and past examples are not necessarily a barometer of future situations.

My understanding is that if a landlord evicts a tenant and then goes on to re-let to someone else for the reason of achieving a higher rent, the law protects the interest of the tenant by offering compensation.

This compensation does not include only moving costs but also the yearly rent.

If the landlord wishes to evict you for the reason of renovations, he has to show approvals from entities such as the municipality
Mario Volpi,
sales director, AX Capital

People face different situations and will get varied solutions when filing cases at the RDSC, so it is not easy to confirm what outcome is likely.

If the landlord wishes to evict you for the reason of renovations, he has to show approvals from entities such as the municipality. This stops landlords from using this excuse without proper thought or paperwork.

If the landlord states that he is selling, he needs to send a 12-month notice of the same stating this reason.

Unfortunately, when rents are trending upwards, it is common for landlords to try to maximise their investment by requesting the highest rent possible.

However, it is clear that the law is fair and protects the interests of all parties.

Mario Volpi is the sales director at AX Capital. He has worked in the property sector for 39 years, in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to m.volpi@axcapital.ae

WHAT FANS WILL LOVE ABOUT RUSSIA

FANS WILL LOVE
Uber is ridiculously cheap and, as Diego Saez discovered, mush safer. A 45-minute taxi from Pulova airport to Saint Petersburg’s Nevsky Prospect can cost as little as 500 roubles (Dh30).

FANS WILL LOATHE
Uber policy in Russia is that they can start the fare as soon as they arrive at the pick-up point — and oftentimes they start it even before arriving, or worse never arrive yet charge you anyway.

FANS WILL LOVE
It’s amazing how active Russians are on social media and your accounts will surge should you post while in the country. Throw in a few Cyrillic hashtags and watch your account numbers rocket.

FANS WILL LOATHE
With cold soups, bland dumplings and dried fish, Russian cuisine is not to everybody’s tastebuds.  Fortunately, there are plenty Georgian restaurants to choose from, which are both excellent and economical.

FANS WILL LOVE
The World Cup will take place during St Petersburg's White Nights Festival, which means perpetual daylight in a city that genuinely never sleeps. (Think toddlers walking the streets with their grandmothers at 4am.)

FANS WILL LOATHE
The walk from Krestovsky Ostrov metro station to Saint Petersburg Arena on a rainy day makes you wonder why some of the $1.7 billion was not spent on a weather-protected walkway.

Dirham Stretcher tips for having a baby in the UAE

Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:

• Buy second hand stuff

 They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.

• Get a health card and vaccinate your child for free at government health centres

 Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.

• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.

Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.

• Once baby is ready for solids, cook at home

Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.

The biog

Family: He is the youngest of five brothers, of whom two are dentists. 

Celebrities he worked on: Fabio Canavaro, Lojain Omran, RedOne, Saber Al Rabai.

Where he works: Liberty Dental Clinic 

Founders: Abdulmajeed Alsukhan, Turki Bin Zarah and Abdulmohsen Albabtain.

Based: Riyadh

Offices: UAE, Vietnam and Germany

Founded: September, 2020

Number of employees: 70

Sector: FinTech, online payment solutions

Funding to date: $116m in two funding rounds  

Investors: Checkout.com, Impact46, Vision Ventures, Wealth Well, Seedra, Khwarizmi, Hala Ventures, Nama Ventures and family offices

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.”

Day 2, stumps

Pakistan 482

Australia 30/0 (13 ov)

Australia trail by 452 runs with 10 wickets remaining in the innings

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

Available: Now

Updated: March 30, 2023, 4:00 AM