Question: I have served my tenant in Dubai with a 12-month eviction notice that is notarised. The reason submitted was to sell the property. Can I put the property on the short-term rental market such as Airbnb if the selling price is not achieved?
My understanding is that I am barred from putting the property on the long-term rental market (Real Estate Regulatory Authority-registered) for a period of two years.
Further, can the eviction notice be cancelled and the property be offered to the tenant again if I decide to continue with a long-term lease? RK, Abu Dhabi
Answer: If you have requested an eviction for the reason of selling and you do not sell the property, the best way to continue would be to request a no objection certificate from the outgoing tenant stating they have no opposition to you re-letting on a short-term basis.
If you decide to let the property long term, you should offer the unit to the original tenant. If the tenant does not take you up on your offer, they need to put in writing that they do not have any grievance with you letting the property on long-term rent. However, I stress that they ought to be given first refusal before going ahead with any other arrangement.
Q: I own a property in Dubai. I want to know by how much I can increase rent after my tenant vacates next September. TI, Dubai
A: If you have a property you wish to rent and if it is vacant, you can charge the current market rent. This information can be sourced by either speaking to a broker who is an area specialist within your community, or you can get an idea by visiting property portals such as Property Finder or Bayut.
Q: I gave my tenant one year’s notice (through registered mail) to vacate the property as I wanted to move in. A month before the expiry of the tenancy, in May, she requested that I extend for another four months due to a medical condition. I reluctantly agreed and we signed a four-month tenancy extension, with a higher rent, at current market value.
Now, two weeks before the expiry of her tenancy extension, she says she wants to renew for another 12 months. I have offered to renew at the monthly rate she is currently paying, but she is refusing to accept this and wants a reduction. I no longer need the property as I made other plans after she extended by four months.
Given that we are only two weeks from the expiry of her four-month lease extension, if she continues to occupy the property without signing a new tenancy agreement, does the law require her to continue paying the current monthly rent? If so, how does one enforce this?
Alternatively, can I evict her for staying in the apartment without a valid tenancy agreement? MA, Dubai
A: Technically speaking and unless otherwise agreed, a tenancy contract renews automatically on the same terms and conditions as before.
However, there is potentially a problem with this statement in your case, because the previous 12-month contract was on a specific rent and the four-month extension was set on a higher rent.
Therefore, the key to the new 12-month contract lies with any agreement you both can reach. If none can be reached, the only way to sort your differences would be a decision from a judge at the Rental Dispute Settlement Committee.
I suspect that they will refer you both to the Dubai Land Department rental index for guidance, but ultimately it will be up to the judge to decide. However, one of you will have to file a case in the first place to engage with a judge.
Mario Volpi is head of brokerage at Novvi Properties and 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 mario@novviproperties.com
