Dubai Property Rent Dispute: What Happens When a Tenant Refuses to Extend Lease?
In a recent query to a property expert in Dubai, a tenant raised concerns about extending their lease for only two months instead of the standard 12-month period. The tenant, who has been living in the property for eight years, was unsure about the fair rent to pay for the extension and whether they could be evicted if they refused to leave.
The tenant’s dilemma raises important questions about the rights and responsibilities of both landlords and tenants in Dubai’s rental market. According to the Real Estate Regulatory Agency’s rent calculator, the rent for the extension should be the same as the existing rent contract. However, the tenant was unsure if this was fair, given the current market rates.
In response to the tenant’s query, the property expert emphasized the importance of finding a compromise in such situations. The expert found it unreasonable for the landlord to expect the two-month extension to be at the new market rate, considering the long-standing relationship between the parties. The expert suggested that the tenant’s offer to pay the new rent as per the Rera rental calculator was reasonable, as it would likely be at an increased pro rata rate anyway.
If no agreement can be reached between the landlord and tenant, the only alternative would be for one of the parties to file a case at the Rental Dispute Settlement Committee (RDSC). The RDSC would then review the case and make a decision based on who is being reasonable in the situation. While the outcome of such a case is uncertain, the expert believed that the judge would likely find in the tenant’s favor, considering the short duration of the extension.
In another query, a landlord sought advice on re-letting a property after evicting a tenant for the purpose of selling the unit. The expert advised the landlord to obtain a no-objection certificate (NoC) from the previous tenant before re-letting the property. Additionally, the landlord must offer the property to the old tenant first at the original rent before re-letting it at the market rate.
The expert also addressed a query about sending a 12-month notarized eviction notice to a tenant whose lease expires in the future. The expert clarified that the notice can be sent at any time, as long as it is for a minimum of 12 months. However, if the tenant is asked to move out earlier than the contract states, there should be some form of compensation agreed upon with the tenant.
Overall, these queries highlight the complexities of rental disputes in Dubai and the importance of understanding the legal rights and obligations of both landlords and tenants. Finding a compromise and seeking legal advice when necessary can help resolve disputes and ensure a fair outcome for all parties involved.