Answer: Landlords hold on to a security deposit in case repairs are needed at the property after the tenant has vacated, or in case of any outstanding invoices such as utility charges.
The property should be returned to the landlord in the same condition that it was offered to the tenant at the start of the lease agreement.
If your apartment was new, I presume all the paint work was in excellent condition on handover.
You would be within your rights to claim the cost of repainting and cleaning, and/or repairing anything to return the unit to the same condition at handover.
The tenant can either pay for the work and you return the security deposit in full, or you use the deposit to do the work and return the remaining funds to him.
Q: My landlord served me with a 12-month eviction notice on March 31 last year and I need to vacate the property by April 1.
However, the owner is set to sell the property well before the expiry of his eviction notice.
If the transfer of ownership happens before the eviction date, does the new owner have to serve me a separate 12-month eviction notice?
If so, will the old lease terms (such as rent) be valid until the end of this new eviction notice?
If I agree to vacate the property many months before the eviction date, can I claim compensation from the new owner?JS, Dubai
A: In the past, some judges at the Rent Dispute Settlement Committee have requested the new owner of a rented property to issue their own 12-month notice to vacate, if they or their next of kin to the first degree need to use the property.
This is irrespective of the old owner having already served a 12-month eviction notice.
However, it is not guaranteed that this judgment will be carried out all the time as it is up to the judge at the RDSC to decide.
The old contract or lease has to be adhered to in its entirety and only changes communicated in writing 90 days before the renewal date will be allowed. So, your contract terms should remain the same as before.
In case you decide to vacate the unit earlier, it is up to you to negotiate and agree with the new owner regarding any compensation owed.
Q: My tenant recently vacated the apartment I own but left an outstanding air-conditioning bill of about Dh4,000.
He handed over a cheque to the building's management but when I deposited it in the bank, it bounced.
I sent him a message but he wants me to release his security deposit of about Dh4,300 before he can pay the outstanding bill.
However, the tenant caused damage to the property, which now has leakages, defective lights and holes drilled in the walls. I can assess the cost of damage only after consulting with my contractor.
Meanwhile, the building's management is asking me to pay the air conditioning bill as soon as possible because I need to move into the apartment. What can I do?SM, Dubai
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A: If you trust your tenant, then go ahead and refund the deposit to allow him to pay the air conditioning bill.
However, I am sure you do not have faith in him. Returning the deposit will weaken your position to retrieve any money.
The only solution I can propose is if the tenant can leave something of value for you to hold as security — but only if they are happy to do so as a gesture of goodwill.
Once you are in possession of this, you can perhaps return the deposit money for him to then pay the outstanding bill.
When he would like his item returned, he can pay you what is owed to retrieve it.
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
The National's picks
4.35pm: Tilal Al Khalediah 5.10pm: Continous 5.45pm: Raging Torrent 6.20pm: West Acre 7pm: Flood Zone 7.40pm: Straight No Chaser 8.15pm: Romantic Warrior 8.50pm: Calandogan 9.30pm: Forever Young
Starring: Bdoor Mohammad, Jasem Alkharraz, Iman Tarik, Sarah Taibah
Director: Majid Al Ansari
Rating: 4/5
FIXTURES
December 28
Stan Wawrinka v Pablo Carreno Busta, 5pm
Milos Raonic v Dominic Thiem, no earlier then 7pm
December 29 - semi-finals
Rafael Nadal v Stan Wawrinka / Pablo Carreno Busta, 5pm
Novak Djokovic v Milos Raonic / Dominic Thiem, no earlier then 7pm
December 30
3rd/4th place play-off, 5pm
Final, 7pm
French business
France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.
The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.
“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.
“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”
Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.
Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.
“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.
