I am an expat and invested into a property in Dubai two years ago. I inherited a tenant whose tenancy contract I subsequently extended. Last year when I signed a contract, we verbally agreed that he would move out of my apartment. At that time, based on advice I'd received, I inserted a non-renewable clause into the contract in line with the above agreement. I later learnt that I should instead have sent a 12-month eviction notice via registered post/notary. Three months ago when I approached the tenant, he was agreeable to moving out of the apartment and I have emails to this effect. In October he changed his stance. His contract expires this month. He then filed a petition with Rera (Real Estate Regulatory Agency) and submitted the renewal payment with them and now claims he cannot be evicted, which I fear is correct. I have two specific questions: firstly, because I have not provided a notice am I forced to extend the contract for another 12 months? Secondly, in case I am forced to extend, do we both need to go to Rera to clear this or can I simply tell him we are good for a one-year extension and we sign the fresh contract? KM, Dubai
It is correct that an eviction notice is valid only if it is submitted in the correct format, that is, with 12 months' notice and delivered by Public Notary or registered post. In addition, a non-renewal clause is neither legal nor valid in Dubai and cannot be enforced. A landlord can only evict a tenant for a number of specified reasons and any eviction notice must state which reason is being used. The valid reasons include: the property is to be sold, the landlord or a first-degree relative intends to move in, the property is to be demolished or structural changes are to be undertaken which mean it is unsafe to continue living in it. If a property is used illegally such as to run a business from or is sublet, then that is a reason for eviction as is non-payment of rent. A landlord cannot evict a tenant just because they want to, or to relet the property at a higher rent. As notice was not provided in the proper manner, the tenancy renewed and will continue to do so unless the tenant is evicted for a valid reason. As the tenancy contract has extended there should be no need for both parties to go to Rera and the tenant can advise them that the matter has been settled.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE
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