PROPERTY MATTERS: TOP TIPS FOR LANDLORDS

10 Dec 2018

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PROPERTY MATTERS: DECEMBER 2018 ISSUE

TOP TIPS FOR LANDLORDS

There is wide ranging commentary available to the public about the rights of tenants and the obligations of landlords, but there is limited practical advice which focuses on safeguarding the rights of landlords. At James Berry & Associates Legal Consultants, we highlight the top tips for landlords which touch on important practical points to note when placing properties on the rental market in the UAE, specifically in the Emirate of Dubai.

1. The tenancy contract should be in the format of the RERA approved version to be found on https://www.ejari-online.com/tenancy-contract-draft-dubai/. Additional terms may be included by way of an addendum to the contract.

2. The tenancy contract must be registered with Ejari and an Ejari certificate must be obtained. Whilst it is the landlord’s responsibility to ensure that this is done, more often than not, this task falls to the tenant to undertake as an Ejari certificate is required for the DEWA connection and for the residency sponsorship process. The Ejari registration is also required for the purposes of filing a claim in the Dubai Rental Dispute Settlement Centre should a dispute arise between the parties.

3. If the tenant wishes to sublease the property, s/he must seek the written permission from the landlord first of all. Failure to do so could raise grounds for eviction of the tenant.

4. A tenant must obtain the specific permission from the landlord if s/he wishes to make restoration changes or undertake major maintenance to the property. Any unauthorised changes can give grounds for the landlord to evict the tenant.

5. The tenant is obliged to return the leased property to the landlord in the condition that it was in when the tenant took occupation, subject to fair wear and tear. The obligation extends to replacing any broken or damaged items (caused by the tenant) as well as cleaning the leased property on the termination of the lease. The landlord should specify in the tenancy contract if painting is required upon the tenant vacating the property.

6. A landlord is allowed to evict his tenant on four grounds upon expiry of the lease:

1. Renovation or Maintenance work;
2. Demolition for construction purposes;
3. Selling of the property; or
4. Recovery of the property for landlord's (or first degree relatives’) personal use.

If a landlord wishes to evict their tenant, the eviction notice must be served on the tenant at least 12 months prior to the determined date of eviction. It has to be served through the Notary Public or by registered mail and must clearly state which ground the landlord is relying on for eviction of the tenant. It is recommended that any notice is served by Notary Public to ensure proof of delivery is available should a claim need to be filed in the Dubai Rental Dispute Settlement Centre.

7. If a landlord wishes to evict their tenant during the term of the tenancy contract, s/he may do so on the following grounds with notification sent to the tenant through the Notary Public or by registered mail:

1. Failure to pay rent within 30 days of landlord’s notification for payment, unless the parties agree otherwise;
2. Subleasing without landlord’s written approval;
3. Use of the property for illegal or immoral purposes;
4. Leaving a rented commercial shop unoccupied for 30 continual days or 90 non-continual days in one year, unless the parties agree otherwise;
5. Undertaking dangerous changes to property that cannot be restored to its original condition or causing damage to the property either intentionally or by gross negligence or allowing others to cause such damage;
6. Using the property in a way that violates planning, building and land regulations;
7. Where the property is condemned, provided a technical report has been issued or attested by Dubai Municipality proving this;
8. Failure of the tenant to observe the legal obligations and/or the particulars of the tenancy contract within 30 days from the date of the notification by landlord to abide by such obligations/ stipulations laid down by the contract; and
9. If the requirements in the Emirate require demolition and reconstruction of the property in accordance with government authorities instructions.

8. If a landlord wants the right to show people around the property (in the event that they are, for example, looking to sell or lease the property), the landlord should specifically mention this in the tenancy contract, and s/he must give reasonable notice of any viewing requirements to the tenant. A period of 48 hours is a reasonable notice period.

9. If the tenant wishes to amend any clause in the contract, s\he has to give the landlord 90 days’ notice prior to the expiry of the term of the tenancy contract.

10. If a landlord wishes to obtain definitive information on whether they are permitted to increase the property rent and would like to know the percentage (%) increase. The Land Department of Dubai government has provided a publicly accessible rent calculator on the following website: https://www.dubailand.gov.ae/English/Pages/Rental-Increase-calculator.aspx. This is designed to monitor and determine whether rental increase is permitted and is based on factors such as the location and size of the property.

At James Berry & Associates Legal Consultants, we assist both landlords and tenants through issues that they may face, whether it be a tenant resisting a rental increase or a landlord wishing to evict their tenant. We acknowledge the importance of ensuring that there is strict compliance with the terms of the tenancy contract both on the part of the landlord and the tenant. We work to ensure that the legal rights are safeguarded and that the landlord-tenant relationship is valued and retained.

This article does not constitute legal advice and should not be relied upon as such. For specific advice in relation to any of the issues highlighted above, please contact hannah@jamesberrylaw.ae  or  nichola@jamesberrylaw.ae

Author: Hannah Farooq

Edited by: Nichola Reece-Burton