UAE Property: ‘Can my tenant sub-let my apartment?’

Question: We have been informed by our neighbours that our tenant is sub-letting our apartment . When we asked him, he said the people are his friends and are staying as guests. What are our options? PT, Dubai Answer: Sub-letting a property is illegal unless the landlord is aware and has allowed it. Your issue can be a problem if the friends stay over an extended period of time, so this will need to be investigated further. I suspect you are going to have to be patient and perhaps enlist the help of others in the building such as the concierge or security guards on duty . The main proof will be if your tenant is also staying at the property, if so, this would aid his story. However, if the tenant is not seen by the building’s team, you could then have further proof that he may be sub-letting because it would seem odd he’s allowing friends to stay in the apartment and not be there himself. This process is not potentially going to be quick, as you will need to gather enough evidence to prove one way or another what exactly is going on. Going forward, if you do gather this evidence and it proves that he is sub-letting, you can confront him again or file a case at the rental dispute centre to proceed to a judgement. Q: My current tenancy contract ended on March 28. I received a renewal notice with a 15 per cent rent increase as per the Real Estate Regulatory Authority index on November 6, 2024, with the index copy attached to the letter. This was almost five months from the contract end date. However, when I checked the index recently, it shows a rent increase of only 5 per cent. What are my options? BW, Dubai A: This has become an issue since the rental index has had a major upgrade from January 1 this year. Anyone who consulted the index before this will most likely get a different result when revisiting it in 2025. The reason for the difference is in how the index is now being calculated as there have been a few changes, but the main one is due to the rating or classification of apartment buildings, which are now graded from one to five stars. So, I suspect the reason for the decrease in the rent increase percentage amount from last year is due to the index assessing the current classification of your building, which is lower. I would advise you to stand firm in what the index states today because the law mentions that while it can be done earlier, the renewal rental amount should be agreed upon renewal. Q: I was recently allotted a unit in an Emaar project in Dubai South with a golf course view. I have already paid Dh37,000 ($10,074), which I was informed was non-refundable. I am confused about the real estate market in Dubai South. Should I proceed with the property purchase process or book losses of Dh37,000? DA, Dubai A: Firstly, it appears that you have paid what is known as an expression of interest (EoI). An EoI is how a developer starts the sales process for an off-plan project before the escrow account is set up or in place. It is a perfectly legal way of effectively locking in a unit. Once the escrow is in place, you will be asked to choose a unit number and proceed to pay the 20 per cent Dubai Land Department fee plus 4 per cent (for the title deed or Oqood) and sign the sales and purchase agreement thereafter. In most cases, EoIs are fully refundable should the buyer decide not to proceed with a unit or if a unit was not able to be allotted. Dubai South is an area that is expected to grow exponentially. Despite the apparent distance of its location, the area will see robust real estate growth mainly due to the Al Maktoum airport, which will become the world's largest and be a huge draw for real estate investors and users alike. Therefore, I urge you to continue with your investment and by the time the unit is handed over, I'm confident that you will have witnessed amazing capital growth. Additionally, if you were to rent the unit out, you will also benefit from good rental income. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com