Dubai Forums Dubai Discussions Dubai General Chat

shafique wrote:
If the landlord doesn't kick us out, it looks like no rent rise for us (as we were new tenants last year) - woo hoo!

Cheers,
Shafique

WB Shaf ... Now thats an interesting point , so some landlords to avoid the cap last year just kicked out the residents saying they want to live in there property or something along those lines. could a tenant take that to the rent committee ?

Yes, you can challenge the landlord's claim at the rent committee and they will ask that the landlord to provide lots of evidence that they intend to move into the flat/villa. If the tenant finds out that the landlord has not moved in (within 6 months I believe), they can then sue the landlord.

interesting thanks for the info K.

I got 15% eventhough my contract begins in Jan '07

Talked to my landlord and he said he knows the law but that our building was paying less than the market standards for a 1 bedroom apartment

That sux

Seraphim wrote:I got 15% eventhough my contract begins in Jan '07

Talked to my landlord and he said he knows the law but that our building was paying less than the market standards for a 1 bedroom apartment

That sux

It sux for him. Tell him you're going to go to the rental committee if he doesn't pull his head in.

Seraphim wrote:I got 15% eventhough my contract begins in Jan '07

Talked to my landlord and he said he knows the law but that our building was paying less than the market standards for a 1 bedroom apartment

That sux

If you already signed for a 15% increase then there isn't much you can do. If you haven't signed, take the landlord to the rent committee and you will definitely win the 7% increase as long as the date for contract renewal is Jan. 1 or after.

Sadly I had to renew before the 3rd of Jan and he came over to collect the cheques on the 27th....Im stuck with 15% I guess...

anyway...hope the salaries keep pace at least

what??? you still did it? tsk.....how stubborn! now other people will be force to pay and you will be sited as an example. I can understand of course you dont want the hassle, but sometimes you have to think far ahead, and its not just about the money, me thinks!!!

Seraphim - check out the main story on Gulf News today (gulfnews.com) - you can claim back the increase from your landlord provided that last-years rent went up from the previous year.

In any case, the maximum increase is 7% so you should be able to claim back 8% of the 15% increase.

Else, take him to the rent council as the article states.

Good luck.

cheers,
Shafique

Interesting article by Emaar on the implications of the 7% cap on property investors:

7% rent cap strikes a note of realism for 2007

The Dubai property market is now generally judged to be in a transitional phase from a situation of under supply to the over supply of new units.

Part of the logic behind the rent cap, aside from preventing an exodus of residents from Dubai, is that new construction is about to deliver a mass of new accommodation starting this year and accelerating massively in 2008 and 2009.

That high rentals have begun to impact on the number of people moving to Dubai is seen in population data. A record of around 250,000 people moved into the city in 2005 while in 2006 the number was probably closer to 130,000; Road Transport Authority data points to 70,000 new car registrations in the first 11 months of 2006, and there are some 1.7 people per car.

Completions accelerate
Clearly the Dubai authorities do not want to see a further deceleration in new demand for property at a time of exponentially rising supply. EFG Hermes latest report pointed to 69,000 scheduled completions for this year and 139,000 next, while admitting that project delays would hit both totals.

However, with market forces of supply and demand beginning to start to move strongly against rent increases, holding rent rises at seven per cent this year makes a great deal of sense, and should inject a note of realism into the market.

If nothing else investors who see ever rising rentals and the continuation of the high rental yields of Dubai should sit up and think about the future.

For property analysts across the board are predicting falling rentals from the end of 2007 as this massive supply of property arrives on the market. Anybody who is building or investing in property on the expectation of immediate strong rental returns should think again and recalculate their business plan.

Falling prices?
It is also clearly true that falling rental returns will not be compatible with rising property values. EFG Hermes' study has prices falling by 25 to 30 per cent by 2010 but notes this could be out by a wide range of possibilities.

This is not to say that there will not be more money to be made out of the Dubai property boom in the future. In many property cycles it is the people who buy real estate off developers in trouble that make the highest profits of all.

But the Dubai property market today has none of the signs associated with a distressed market, and it could be that excess liquidity and supply delays keep the boom going for longer than expected. Nevertheless, the rent cap for 2007 is a reminder that good times do not last forever for landlords, investors and developers.
source: http://www.ameinfo.com/107172.html

I called up my landlord and spoke to him and he said that he wouldnt raise my rent next year, as my building is only 36K for a 1 bedroom whilst the market rate in the area is around 45K....that is correct info but im left debating whether I should go to the rent disputes commitee at the cost of jeopardizing my flat tenure eventually...knowing that if I have to move its next to impossible to find a 1 bedroom for under 40K...

I cant believe how some people can let greed overtake them....

In December, I was informed that the rent would increase by 15%. However, after the announcement I called the real etsate development company that informed me that they have not made a final decision but would abide by any law issued by the government, however he could not make any promises before he got the contracts from the lawyer.

He did imply that there will be no increase in rent since our contract was signed in 2006. I guess the law is being taken seriously as no company is willing to risk its reputation.

Seraphim wrote:I called up my landlord and spoke to him and he said that he wouldnt raise my rent next year, as my building is only 36K for a 1 bedroom whilst the market rate in the area is around 45K....that is correct info but im left debating whether I should go to the rent disputes commitee at the cost of jeopardizing my flat tenure eventually...knowing that if I have to move its next to impossible to find a 1 bedroom for under 40K...

I cant believe how some people can let greed overtake them....

What your Landlord does next year is not relevant. The law is now 7% and he has to comply.

great info.

My job is to increase rents.

Don't call me greedy please.

asc_26 wrote:My job is to increase rents.

Don't call me greedy please.

So from now we can address you as Miss 7.5%

7.5% is too low.

Since when was paying less a bad thing...