Landlords Discover Their Renters Are Winning The Majority Of Judgments Under The Existing Rental Index.

Both landlords and tenants are closely monitoring the Dubai Rental Index to see if it will soon fully reflect the rent hikes observed in 2022. However, their motivations for doing so are very different.

Landlords prefer that their existing renters pay 15–25 percent more than they did when they signed the lease. Alternatively, if that fails, find new tenants. This is why it is crucial that the Rental Index is updated.

Tenants who desire to extend their leases hope that rises to the existing Rental Index range. Across Dubai’s neighborhoods would be as minimal as possible. In addition, that their landlords won’t suddenly want far more than what they are already paying.

Here, the operation and decision of the Rental Dispute Settlement Center of the Dubai Land Department are crucial. However, the majority of their decisions are based on the Rental Index. Which, according to landlords, does not accurately reflect the supply and demand dynamics in the residential rental market.

A Rental Deficit Of Dh100000

According to the Rental Index, the rent for a two-bedroom apartment at JLT‘s Al Seef Tower has not increased. In addition, is now being renewed at around Dh90000. The market rate is Dh140000.

According to authorities, these discrepancies in rental rates necessitate amending the Rental Index. According to SPF Realty CEO Kalpesh Sampat, The Index treats rents in Dubai Marina in a general manner. However, the rent at Marina Pinnacle is Dh100,000 less than the rate at Marina Gate (a two-bedroom flat with a beachfront view rents Dh175,000) (rent is Dh75,000).

In an expanding rental market, many tenants continue to occupy the home after receiving the landlord’s 12-month notice. To evict the unit upon the expiration of the notice period. As required by RERA Law, since the owner plans to sell his property. Due to this, the landlords have reported the tenant to RDC.

Additional Evidence Of Selling Plans

The landlord is frequently instructed to provide further documentation proving that he does, in fact, want to sell the property. “The RDC perceives the landlord as seeking to evict the tenant to rent the house again at a greater rate,” claims Shaukat.

After being evicted, the renter may contact RDC. If they learn that the owner has rented the property to a different tenant for a higher price.

Our main fear is a wide disparity in rents. Which would force the landlord to sell the unit to an investor who would then buy the unoccupied building. A landlord cannot sell his property at the appropriate cost if there is already a renter renting the unit at a cheap rent. Because the existing rent on that property is low, by about 40%.

The Property Is Sold After an Eviction

If a landlord in Dubai wants to sell the property. He or she may seek tenant eviction at the end of the tenancy agreement under Article 25(2)(d). According to James Baldwin, Senior Associate at Taylor Wessing, the landlord must give the tenant written notice of the impending eviction. At least 12 months in advance, either through a Notary Public or registered mail.

When serving the notice or at any other time prior to the eviction, the landlord is not required by the L&T Law to provide evidence that he is selling the property. For instance, by displaying the fact that it is for sale or by setting up viewings.

In reality, an owner may wish to remove the renter and perform some maintenance or renovation work. Before taking images and marketing the property for sale in order to get the best sale price. Additionally, a seller would prefer that prospective buyers rather than one. That is occupied by a renter and their belongings see a vacant property.

A Drawn-Out Legal Process

The property should be empty or rented at the market rate for the rental returns to be higher for an investor to purchase. In order to hear testimony from both parties in a rental dispute, more time needs to be allotted. According to Muhammad Naqeeb, marketing manager at Sky Bay Realty Brokers. He also said that it has gotten more expensive and is like a court process.