Homefront: 'Will I be compensated for being asked to leave my flat early?'

My tenancy contract is valid until August 14 this year but the owner sold the apartment and sent us an eviction notice.

The new owner sent us a notice asking us to vacate on March 31, 2022. We agreed to the notice but added a paragraph that in case we decide to vacate, we must be reimbursed for the remaining duration of the tenancy contract.

Am I obliged to continue paying monthly rent to the previous owner and ask the new landlord to reimburse us instead? I must be reimbursed for being flexible and agreeing to vacate the apartment about six months before the end of the contract. AL, Dubai

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When a property is sold and is subject to a tenancy agreement, the new buyer becomes your landlord and the terms of your existing signed agreement with the previous landlord remains the same in its entirety.

When it comes to reimbursements, you will have to wait to see who is holding your deposit or current rent. Has the previous landlord already forwarded the money to the new landlord?

With reference to breaking the tenancy agreement early, you should not only talk about reimbursement of your unused rent but also request some form of compensation.

When a tenant leaves early by their choice, the landlord often is compensated by an amount equal to one or two months’ rent. The same should apply to a tenant if they are being asked to vacate early. If, however, this is your choice, then no compensation is required.

I am interested in renting a property in Dubai from a landlord, furnishing the unit and then renting it out as a short-term holiday home.

I will offer the landlord 10 per cent extra rent in return for their permission to rent it to other guests.

When it comes to breaking the tenancy agreement early, you should not only talk about reimbursement of your unused rent but also request some form of compensation

Mario Volpi,
sales and leasing manager at Engel & Volkers

Can you see any reason why this would not work? How do I obtain the correct permissions?

Should I approach landlords directly via social media advertisements or through an agency? JO, Dubai

Your idea to sub-let your rented property is plausible. The key is convincing the owner to agree in writing to your proposal because it is illegal to sub-let without their permission.

Offering the landlord only 10 per cent more than the annual rent may, however, not be enough to secure their permission. Renting a unit on a daily or weekly basis can be quite lucrative. To receive the landlord’s approval, you could consider increasing your initial offer.

After you have received the owner’s approval, register and have the property approved by Dubai Economy and Tourism.

This can be done online. The documents required are the property’s title deed, a signed copy of the landlord’s Emirates ID, trade licence if the landlord is a company, along with the Emirates ID or passport copy of the authorised signatory.

You will also need to produce a recent Dewa bill and tenancy agreement for the individual tenant. The tenancy agreement has to be registered with Ejari.

The fee is Dh1,500, plus a Dh10 knowledge fee and a Dh10 information fee.

The property will be graded as either standard or deluxe, depending on the services and amenities offered, and this will determine the cost you can charge on a daily, weekly or monthly basis.

In terms of finding landlords to propose this idea to, it might initially be easier to check out “for rent by landlords” posts on property websites. However, real estate agents can also assist in your search for the right property as they are incentivised by a commission.

Mario Volpi is the sales and leasing manager at Engel & Volkers. He has worked in the property sector for more than 35 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to mario.volpi@engelvoelkers.com

How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal.

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.”

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

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Benefits of first-time home buyers' scheme

Priority access to new homes from participating developers
Discounts on sales price of off-plan units
Flexible payment plans from developers
Mortgages with better interest rates, faster approval times and reduced fees
DLD registration fee can be paid through banks or credit cards at zero interest rates

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Tell-tale signs of burnout

- loss of confidence and appetite

- irritability and emotional outbursts

- sadness

- persistent physical ailments such as headaches, frequent infections and fatigue

- substance abuse, such as smoking or drinking more

- impaired judgement

- excessive and continuous worrying

- irregular sleep patterns

Tips to help overcome burnout

Acknowledge how you are feeling by listening to your warning signs. Set boundaries and learn to say ‘no’

Do activities that you want to do as well as things you have to do

Undertake at least 30 minutes of exercise per day. It releases an abundance of feel-good hormones

Find your form of relaxation and make time for it each day e.g. soothing music, reading or mindful meditation

Sleep and wake at the same time every day, even if your sleep pattern was disrupted. Without enough sleep condition such as stress, anxiety and depression can thrive.