As Dubai's real estate market thrives, reports of illegal evictions are rising, causing distress among tenants. Many residents face sudden eviction notices under false pretenses, only to find their apartments re-rented at significantly higher rates.
Case in Point: Jan Alabastro
Jan Alabastro, a resident of Jumeirah Village Circle (JVC), was recently evicted under the claim that his apartment would be sold. Shortly after moving out, he discovered the property was up for rent again at a much higher price. "Is that even legal?" Alabastro questioned, noting that the new rent was exorbitantly high. The Filipino expat, leading a marketing agency, paid Dh46,500 annually for his one-bedroom flat. According to the Real Estate Regulatory Authority's (RERA) calculator, similar units in his area ranged between Dh54,000 and Dh66,000, with a maximum allowable increase of Dh4,650 upon renewal. Thus, he should have been paying no more than Dh51,160 if allowed to renew his lease.
A Widespread Issue
Alabastro is not alone. Dilip Daswani, a real estate expert in Dubai, confirms that such tactics are employed by unscrupulous landlords to bypass RERA's rules on rental hikes. This practice, he emphasizes, is illegal and can result in penalties for landlords. Alabastro, who received an offer to rent the same flat at Dh55,000 via WhatsApp, felt deceived, especially since the flat was supposed to be sold as per the eviction notice.
Legal Insights
According to Taha Ramadan, a senior counsel at Galadari Experts and Legal Consultants, landlords can legally evict tenants at the end of their lease if they provide a 12-month notice, citing the sale of the property as a valid reason. However, the law mandates that the property cannot be re-rented for at least two years for residential units (three years for commercial units) unless it is genuinely sold or used for personal purposes.
Seeking Compensation
Tenants can file a compensation claim if they find that the property has been re-rented within the prohibited period. Compensation may cover relocation expenses, costs of finding a new property, and any rent difference, explains Essa Ziad Galadari, an advocate at the firm. Filing a case with the Rental Disputes Settlement Centre incurs a fee of 3.5% of the claimed compensation amount, with a minimum of Dh500 and a maximum of Dh15,000.
Knowing Your Rights
Alabastro admitted his lack of awareness regarding tenant rights. In contrast, Joseph Roney, another JVC resident, successfully contested an eviction notice by understanding and asserting his legal rights. Roney managed to extend his stay by ensuring the eviction notice complied with legal requirements and forced the agency to issue a special renewal contract.
While these issues persist, they are becoming less common as tenants become more informed. The Dubai Land Department and real estate agents now provide better guidance to both tenants and landlords. Experts advise landlords to consider market conditions and legal regulations when increasing rent and to maintain transparent communication with tenants to avoid disputes.
In conclusion, while Dubai's booming real estate market has led to some landlords exploiting legal loopholes for financial gain, informed tenants are increasingly able to protect their rights and challenge unfair practices.