Homefront: Dilemma for landlord with tenant reluctant to move out

Our property expert Mario Volpi answers a question from a property owner in the Springs, whose tenant signed a non-renewable contract.

A property owner in the Springs does not want to renew the tenancy contract. Above, one of the villas in the Springs in Dubai. Jeff Topping / The National
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I own a property in the Springs and last year I informed my tenant that the contract will not be renewed in the year 2014, specifying it on the tenancy contract. The tenant is going against his words and is not ready to vacate it. Dubai recently has launched the rule of notifying them through notary public but this rule was not there in March 2013. What should I do? SP, Dubai

Although your tenancy agreement specifies that it is not renewable, this clause is not recognised by the law. All tenancy agreements are renewable, provided the tenant wants to extend and that other factors are also satisfied. You are right in saying that the notary public notification was not in place in March 2013, but this is now the law so everybody has to abide by it.

My tenancy contract is expiring on April 25. My house owner has sent a mail saying that he wants to sell his house. I had mentioned to him about the 12 months' notice clause. Now he is asking if we can settle mutually and is asking for a realistic time frame for me to vacate and then he will process accordingly. My current rental is Dh50,000. If the contract is renewed it will increase by 5 per cent (as per the Rera calculator). If I vacate the house the new rentals are in the range of Dh65,000 plus brokerage fees of Dh3,000. I am clearly at a loss if I do move out so what should I do? SM, Dubai

Your landlord is within his rights to put the property on the market if he wishes to sell. In notifying you, he has to give you 12 months’ written notice via notary public or sent via registered mail. This notification can be given at any time. By all means do get together and agree terms but also remember your rights as a tenant. Firstly, as stated, if he wants to market the property, he has to give you the notice to vacate in the proper way. The other thing to remember is that while the Rera rent calculator states your new rent should be increased by 5 per cent, the landlord has not given you your statutory 90 days’ notice to alter the contract, therefore according to the law, your rent from April 25 should remain the same as last year.

My landlord has recently increased my rent from Dh39,000 to Dh50,000 and I have been given one month's notice to vacate my apartment if I cannot pay the rent. As per the rental calculator, I am not entitled to an increase, especially as it is my first contract. He has also told me he wants to use the apartment for himself but I recently saw ads of the apartment for rent on Dubizzle.com. Please advise if I should complain? KO, Dubai

Your landlord is not allowed to increase your rent unless the Rera rent calculator says so, and even then he must have informed you of any changes to the contract, and this obviously can mean the rent too, at least 90 days before the expiry of your tenancy.

If he wants to use the property himself or for his immediate next of kin, he is obviously allowed to do so but he must inform you of this with a notarised document giving you 12 months’ notice to vacate. This document can also be delivered via registered mail. If he does want to use the property for himself or next of kin then the proof of responsibility that he does not own another suitable property is with him to provide. If he evicts you and you subsequently find out he has relet the property, you can then open a case at the Dubai rental dispute settlement centre at the Land Department in Deira. If the landlord does evict you for the reason of moving in himself then he is not allowed to re-let the property for a period of two years from the date of your eviction.

Mario Volpi is the managing director of Prestige Real Estate in Dubai (prestigedubai.com). He has 30 years of property industry experience in the emirate and London. Send any questions to mario@prestigedubai.com

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