Cost of filing case with rent dispute centre is 3.5% of annual rent

Property experts have forecast rents softening in Dubai’s residential market in 2015 and a significant decline next year. But ‘smart’ tenants, who know the law, can prevent landlords from seeking outrageous hike.

We know that if the landlord and tenant don’t mutually agree to a new rent prior to a contract renewal, the latter has the right to file a case with Dubai’s Rental Dispute Settlement Centre.

Remember, you will have to pay 3.5 per cent of your annual rent as non-refundable fees, besides having to visit the dispute centre, at least twice, before a judgment is passed.

Thereafter, the landlord is unlikely to heed to any of your requests of maintenance. You will then have to revisit the dispute centre to seek services by paying the 3.5 per cent fee again.

Emirates24|7 spoke to several real estate agents who confess that existing tenants who have talked and negotiated their rents with landlords have often been successful.

In January, Hadef & Partners, a UAE-based law firm, said that only 31 per cent of respondents to their survey had challenged the proposed rent contract termination, with over 84 per cent resorting to direct negotiation with the landlord. In any case, where a challenge was made over 64 per cent were successful, it said.

Though it may not always hold true, real estate agents admit the best time to negotiate with your landlord is on a weekday, and not weekends, as they seek to close the deal as early as possible as they are preoccupied with their daily work.

Whatsoever, keep in mind the following points to possibly thwart your landlord’s effort of any arbitrary rent hike.

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