Question: I have been renting a villa for 15 years. I always pay the rent with an annual increase or decrease according to the market value and in mutual agreement with the management office.
I also pay a small annual administration fee for the Ejari registration.
Recently, the landlord changed management offices and the new agency wants to charge a management fee of 5 per cent for contract renewal.
It informed me of this 90 days before the expiry of the contract.
My original tenancy contract, which has been renewed year after year, had no mention of a management fee.
The 5 per cent management fee and the 10 per cent rent increase according to the Real Estate Regulatory Agency effectively add up to a 15 per cent increase to my annual cost of living.
I have tried talking to the agency, but they insist on charging this fee.
Is the new management office allowed to introduce a fee into the contract after so many years?
Wouldn’t that be considered as a one-sided change of terms in the tenancy agreement?
And if it is not allowed to do so, how can I convince or prove that it can't do this?
I am not keen on filing a case with the Rent Dispute Settlement Committee as this will also cost a considerable amount of money. MW, Dubai
Answer: For what reason has this new management fee of 5 per cent been levied? If it is an administration cost to prepare the contract, then I can understand that a set fee of perhaps Dh1,000 or Dh1,500 plus value added tax would be a reasonable sum, but 5 per cent is excessive.
The management company needs to justify this cost to you and then you can decide whether you wish to continue to pay this fee or not.
You say that you would not like to go to the RDSC as this will cost too much.
Unfortunately, if you don’t get a judgment in your favour, the 5 per cent that the management company is requesting will continue to be charged.
So, I believe that the 3.5 per cent fee that is required to file a case is money well spent, especially if the judge finds in your favour.
When a change to a contract is put forward, irrespective of whether 90 days’ notice has been given, there needs to be agreement on both sides to the changes and if there is not, the only way to resolve the issue is to file a case at the RDSC.
Q: The Rera rent calculator index has not been updated. The rents reflected show data that is two years old.
Because of this, landlords like me cannot increase rent. The rental valuation certificate allows only for a maximum increase of 20 per cent for existing tenants.
I understand that tenants need to be protected but if they are very rigid based on an outdated Rera rental index, how can landlords deal with it?
I am sure there are many small-time investors like me caught in a similar situation. MC, Dubai
A: It is true that the rental market appears to be stacked in favour of the tenant, but this stance is replicated all over the world.
I suppose it has to be this way, otherwise the alternative would be anarchy, allowing landlords to set their own rates. This will not be good for the long-term view of any rental market.
The balance may have been adjusted towards a more level basis by the introduction of the Dubai Land Department’s valuation service, which can help landlords in certain situations.
The Rera rental calculator used to be updated quarterly and then it went to being updated once a year.
The DLD has been working on rating buildings to give a more accurate assessment for both residential and commercial properties.
This is a colossal task and one that will take time but once implemented, it will bring about a fairer assessment of rental values, taking into consideration facilities, quality of materials used, views and property sizes.
In the meantime, be safe in the knowledge that despite existing rental values not necessarily keeping up with vacant unit rental values, the Dubai property market has performed extremely well since the Covid-19 pandemic, so there is some consolation regarding capital appreciation.
Therefore, your small investment will have gained in value, which will be somewhat of a cushion to the dilemma you and many landlords face.
Mario Volpi is the sales director at AX Capital. He has worked in the property sector for 40 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
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Q&A with Dash Berlin
Welcome back. What was it like to return to RAK and to play for fans out here again?
It’s an amazing feeling to be back in the passionate UAE again. Seeing the fans having a great time that is what it’s all about.
You're currently touring the globe as part of your Legends of the Feels Tour. How important is it to you to include the Middle East in the schedule?
The tour is doing really well and is extensive and intensive at the same time travelling all over the globe. My Middle Eastern fans are very dear to me, it’s good to be back.
You mix tracks that people know and love, but you also have a visually impressive set too (graphics etc). Is that the secret recipe to Dash Berlin's live gigs?
People enjoying the combination of the music and visuals are the key factor in the success of the Legends Of The Feel tour 2018.
Have you had some time to explore Ras al Khaimah too? If so, what have you been up to?
Coming fresh out of Las Vegas where I continue my 7th annual year DJ residency at Marquee, I decided it was a perfect moment to catch some sun rays and enjoy the warm hospitality of Bab Al Bahr.
The specs: 2018 Opel Mokka X
Price, as tested: Dh84,000
Engine: 1.4L, four-cylinder turbo
Transmission: Six-speed auto
Power: 142hp at 4,900rpm
Torque: 200Nm at 1,850rpm
Fuel economy, combined: 6.5L / 100km
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
MATCH INFO
Burnley 1 (Brady 89')
Manchester City 4 (Jesus 24', 50', Rodri 68', Mahrez 87')
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
THE SPECS
Engine: Four-cylinder 2.5-litre
Transmission: Seven-speed auto
Power: 165hp
Torque: 241Nm
Price: Dh99,900 to Dh134,000
On sale: now
