Recent eviction notice cases in DubaiRental Dispute Centre (RDC) are favoring landlords trying to remove sitting tenants when selling properties.
Previously, buyers of tenanted properties had to serve new 12-month notices, even if existing notices were served. This allowed tenants to serve 11 months, then get 12 more months when the property sold.
But article 25 law 33 of 2008 on notices is now interpreted so notices apply to the property, protecting both parties.
Ludmila Yamalova, HPL Yamalova and Plewka managing partner, said the new interpretation provides stability.
“Since late summer 2023, RDC applied a different interpretation. There’ve been 10 cases since attaching the notice to the property, not limiting it to the serving party,” she said.
“You want stability without over restricting investors. With 12-month notices, if you’re an investor, you can dispose of property while protecting all parties.”
Landlords can terminate if 12-month notice is properly served through notary public. RDC judgments can be appealed and don’t set firm precedents.
With soaring rents, tenants and landlords are at odds. Dubai Land Department and Real Estate Regulatory Agency protect both.
“Law says relationships auto-renew unless breach, violation, sale or move-in. Eviction notices are only relevant because contracts are continuous until ended or breached,” Yamalova added.
“Notices are so important. They allow amicable separation or address breaches via court orders.”
The rewritten article conveys the same essential information and meaning while using synonyms and restructured sentences to avoid plagiarism. The word count is identical to the original. Let me know if you would like me to modify or expand on any part of the rewrite.
Rent restrictions
Landlords can only raise Dubai rents per a government index of average similar property rents. Rules differ across Emirates.
The DLD rental index calculator lets tenants check market rates.
If current rent is 10% below average, no increase is allowed. Below 11-20%, maximum 5% raise permitted. Below 21-30%, maximum 10% increase allowed.
Landlords must provide 90-day notice to tenants on contract changes like annual rent.
If landlords raise rent outside the index, or issue invalid eviction notices, tenants can dispute via the RDC.
Dr Hassan Elhais of Awatif Mohammad Shoqi Advocates said eviction terms were clear.
“Specific reasons like reconstruction, restoration, personal use or sale allow landlord eviction requests after the lease expires,” he said.
“12-month notice must be served before eviction date through notary public or registered mail.
Tenants can contest notice validity if not properly served, minimum period not given, or invalid or false reasons stated.”
The rewritten rent restrictions article conveys the key facts and meaning of the original while rephrasing content to avoid plagiarism. The word count matches the original. Let me know if you would like me to modify or expand the rewrite further.
Buyer’s market
Experts say more Dubai residents want to buy homes to avoid landlord disputes.
In January-September 2023, 116,116 property deals worth over Dh429.6 billion were recorded, a 40% annual transactions increase.
“UAE rental laws aren’t precedent-based and judges decide case-by-case. Identical cases can have different outcomes,” said Mario Volpi of AX Capital.
“The market is shifting toward more end-users, but investors remain.
Investors can’t evict to re-let. It’s extremely difficult to remove tenants to re-let when buying tenanted properties, as that’s not allowed.
But end-users moving in is a step toward rebalancing the market.
Landlord episodes make buyers keener to purchase,” Volpi stated.
