UAE Property: ‘Can I dispute rent increases on the basis of poor maintenance?'

Q: I rent a three-bedroom apartment in Dubai, in which I have been living with my parents since 2009. The building has a gym and a swimming pool , but these have never been operational . The building is mostly used for commercial purposes and we are one of the few families living here. My rent was Dh100,000 ($27,229) in 2020. The rental company reduced it to Dh90,000 in 2021 due to the repercussions of Covid-19 . The management changed after that and increased the rent to Dh92,250 (2.5 per cent rise) in 2022 and removed support for smaller maintenance issues. They later increased the rent to Dh98,000 (6.2 per cent increase) in 2023 and Dh107,000 (9.2 per cent increase) in 2024. This is an increase of more than 15 per cent in the past two years after several requests to maintain the rent. In parallel, the quality of maintenance has considerably declined. The building is old. Over the past year, there have been more maintenance issues in common areas, such as air conditioning not working, a broken roof, no cleaning of the lobby and elevators, no security available, insect infestation and no AC duct cleaning in summer. The company is increasingly welcoming hotel staff and people living in shared accommodation. Considering that the building does not provide basic maintenance, amenities, security or free Dewa/chiller, do I have a case to dispute a further rent increase if they do not respond positively to my request to maintain the same rent? JG, Dubai A: You have several choices given the state of the property, especially the common areas and the lack of amenities or facilities, including security. You really ought to consider moving out. The rent may be higher in other available units, but you will also be getting a better quality of life, which is obviously worth the extra rent that you may have to pay. Your alternative is to just stay put and allow the landlord to not maintain the building, and you end up being less happy. If you wanted to file a case against any further rent increases, you can do so at the Dubai Land Department's Rental Dispute Centre (RDC). However, I suspect that you may not get the satisfaction you require, especially if the landlord is following the Dubai Land Department rental index, which determines any increases. Remember, the index does not take into consideration how the building is maintained or what facilities it has or does not have. It just gives an average rent for the unit based on its location and number of bedrooms. There is no guarantee that a judge will rule in your favour if you file a case. Question: I live in an apartment in Dubai for which I pay an annual rent of Dh120,000. My current tenancy contract expired on June 30. The property was sold to an investor last year and the new landlord issued a notice to vacate on the basis that he wishes to sell the property again. The notice to vacate comes into effect on September 6. In March, the landlord agreed to extend the contract from July 1 until September 6 for a higher rent (as per the Real Estate Regulatory Agency’s rental index) for the number of days I would remain in the apartment. I agreed to it. In May, the landlord said he had not sold the apartment and would extend my tenancy contract for one year from July 1, 2024 to June 30, 2025. He said he would withdraw the notice to vacate. As per Rera, my rent should now be Dh144,000. However, he delivered a new tenancy contract for a rent of Dh200,000. I contacted the RDC who advised me to open an offer and deposit case for the new tenancy contract. The landlord rejected the case. The RDC then advised me to open a first instance case against the landlord and to let a judge from Dubai Courts decide the matter. The case was opened on June 12 and the court date has been set for August 5. Since my contract expired on June 30 and I initially agreed to stay until the notice to vacate date of September 6, am I able to stay in the apartment until the judge has passed his verdict? Do I need to pay the landlord any money in the meantime until the decision from Dubai Courts is received? Do I need to inform the landlord of anything? He is aware of the first instance case and the court appearance date. I realise that the judge may ask me to vacate on September 6 and I will gladly pay any rent due until then, but do I pay this after the judge’s decision? SI, Dubai Answer: With reference to your first question, the answer lies with any agreement between you and your landlord. I suggest you request to stay at least until the case is finished and the outcome is known. If he refuses, he will have to file a case himself, but if you are continuing to pay your monthly rent (already agreed), he cannot evict you unilaterally. For any amount of days or weeks you stay in the property, rent owed has to be paid, so make sure you are up to date with these payments. You do not need to inform the landlord of anything unless you wish to clarify any points you may have, but be aware he may be hostile, given the circumstances. Nobody will know the actual outcome of the case until the judge decides, so best not to speculate at this point, but act quickly once a judgment has been made. Remember, you can appeal if you feel this is the right action if the judgment goes against you. Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com

UAE Property: ‘Can I dispute rent increases on the basis of poor maintenance?'

The Rera rental index only gives an average rent for the unit based on its location and number of bedrooms