Introduction
Dubai resident Jan Alabastro, who lives in Jumeirah Village Circle (JVC), received an eviction notice stating his one-bedroom apartment would be sold. To his surprise, he later found out the apartment was being rented again at a much higher rate. Alabastro, who wishes to remain anonymous, plans to file a case against this practice.
Is It Legal?
Real estate expert Dilip Daswani confirms that some unscrupulous landlords use such tactics to bypass the Real Estate Regulatory Authority (Rera) rules that limit rental hikes on renewals. “This is definitely illegal and those who do this could face penalties,” said Daswani.
Alabastro’s Experience
Alabastro used to pay Dh46,500 a year for his flat. According to Rera’s calculator, the average rate for a similar unit in his area was Dh54,000 to Dh66,000, with a maximum allowable increase of Dh4,650 upon renewal. However, after being evicted, he was offered the same flat at Dh55,000, far beyond the permitted increase. This left Alabastro confused, especially since the flat was supposed to be sold.
Legal Perspective
According to Galadari Advocates and Legal Consultants, landlords can evict tenants with a 12-month notice if they intend to sell the property. However, if the property is not sold or used for personal purposes, it cannot be rented out again for at least two years for residential and three years for commercial properties. Tenants can file a compensation claim if this law is violated, covering expenses like moving and the difference in rental value.
Tenant Awareness
Alabastro admitted he was unaware of his rights initially. Conversely, Joseph Roney, another Dubai resident, was well-informed. After receiving an eviction notice, Roney researched his rights and managed to extend his stay legally. His persistence paid off, saving him both money and the hassle of finding a new apartment.
Increasing Tenant Awareness
While such practices are concerning, they are becoming less common. Yervant Matassarian, CEO of Mertoun Real Estate, notes that tenants now have more access to information and guidance from the Dubai Land Department and real estate agents. As a middleman, Matassarian advises landlords to consider market conditions and legal regulations when raising rents and to maintain transparent communication with tenants.
Conclusion
As Dubai’s real estate market booms, some landlords are using illegal tactics to increase rent. However, informed tenants who understand their rights can successfully challenge these practices and protect themselves from unfair evictions and rent hikes.
