UAE Property: ‘Can my new landlord use an old eviction notice?’

Question: I have been renting an apartment in Dubai for the past seven years and the Ejari will expire in February. My previous landlord served me an eviction notice on November 30 because he wanted to sell the property . The unit was sold in mid-January. Does the new landlord need to provide me a separate eviction notice, or will the old one serve the purpose? Also, can the new landlord rent out the apartment after my eviction ? Are they allowed to increase the rent beyond the Real Estate Regulatory Authority calculation? TR, Dubai Answer: Previously, when a landlord served the 12-month eviction notice for reason of selling, judges ruled that the new buyer would have to re-issue another 12 months’ notice, thus giving you additional time in the property. This ruling is now being looked at differently by judges. In fact, many judges now allow the initial 12-month notice period to stand. As the law in the UAE is not set on precedent, I stress that despite what I have said here, the actual decision (should a case be filed at the Rental Dispute Centre) remains at the discretion of the presiding judge at the time of a hearing. If the eviction notice was served to you on November 30 last year, you are entitled to remain in the property until November 30 this year. Even if the new buyer wishes to move in, they cannot force you out before this date, unless you are happy to leave by your own decision. This being the case, you will be able to renew your tenancy contract with the new landlord from February until the eviction date of November 30. I know that this period is less than a full year, but the end date is the termination of the 12-month notice period. No landlord is allowed to evict a tenant to then just re-let the property to another tenant. Relationships are important too, so I suggest you work out a fair solution for you to potentially stay on should the new landlord wish to re-let and not move in himself. Your last point is interesting because no changes to a rental contract can be made without the consent of both sides and a notice period must also be given. The landlord must give 90 days’ notice from the date of renewal for any changes, including rental increases. So, although the new smart rental index may state that the new rent could be increased, given that the 90 days’ notice was not presented, legally speaking, there should be no increase in your rent upon renewal. In fact, the agreement remains the same in its entirety. This should be communicated to the new landlord, but I wish to stress my point about relationships. If you feel that you could allow an increase even if the law does not permit it, this decision is up to you if it will help the business relationship going forward. Q: My one-year rent contract ends on March 20. On December 24, I informed the real estate agents dealing with my contract that I wish to renew. I currently pay Dh48,000 a year for a studio. One month later, I heard nothing so I followed up and received a reply on January 24 that the owner had “requested an increase in the price to Dh65,000 to align with the unit's current market value”. I questioned whether this increase was within the law. My tenancy agreement states: “Two months' written notice prior to the expiration of the tenancy contract should be given by either the tenant or the landlord in the event of renewal or vacating the property.” I believe the law prevents any rent increase more than 5 per cent. Am I within my rights to stay for another year with a maximum increase of 5 per cent? Or am I in danger of being evicted in March if I don't agree to pay the increase? GC, Abu Dhabi A: Currently, the Abu Dhabi law states that a 5 per cent rental cap applies to all rental renewals. According to Law number 20 of 2006 (Article 16), the landlord may not increase the rent specified in the contract except once a year and by no more than 5 per cent of the rent amount. If your landlord doesn’t agree and wishes to enforce a much higher percentage on your renewal, you can file a case at the Abu Dhabi rental committee to find a solution. You would be within your rights to challenge this increase by stating to your landlord what the law says. However, I would urge you to find common ground, even if it means agreeing to more than the legal increase allowed, for the sake of a good landlord-tenant relationship. This doesn’t mean agreeing to the 35 per cent increase, but perhaps a bit more than the 5 per cent to show you are flexible, value living in the property and wish to continue to do so. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario@novviproperties.com