Question: We were served an eviction notice to vacate the property since the landlord wanted it for his personal use.
He spent about one year renovating it and now has rented the place at a substantially higher price.
Since we vacated 18 months ago, I am aware that we have a valid case to raise, but I am unsure about the level of compensation that I should seek.
The property is rented for almost Dh2 million ($0.54 million), would I be seen as greedy by the courts for asking for such an amount?
I’m aware there is no case law, and it would be at the discretion of the judge on the day, but some guidance would be appreciated. JS, Dubai
Answer: When a landlord uses the reason of moving in himself or for his next of kin of the first degree, in order to evict the current tenant and then doesn’t move in, he is not allowed to re-let the property for a period of two years.
Given the property has been rented now, it is up to the judge to decide if the landlord can indeed re-let it, given it is still outside of the 24-month window.
Under normal circumstances, the compensation has (in the past) been approximately the equivalent to the rental amount the tenant was paying.
For sure, it will not be the current rental amount of Dh2 million as this is based on a vacant property rental (market rate).
Your situation is difficult to accurately predict because it is arguable that the landlord didn’t actually move in, which was the original reason for your eviction.
A considerable amount of time has passed, so it will be up to the presiding judge at the Rental Dispute Centre to decide if you have a strong enough case and if so, what the compensation to you is likely to be.
The landlord would have to come up with a compelling reason as to why he didn’t go through with the original reason.
Q: In my building, the current rent for a one-bedroom apartment is Dh65,000 for new tenants.
According to the Dubai Land Department rental index, the value ranges from Dh57,000 to Dh72,000.
I obtained a rental valuation certificate in September 2023, which is before the DLD updated the rent index.
The certificate stated the rent as Dh55,000, and it is still valid. How should I set the rent for the new year? I am considering setting it at Dh55,000.
In case my tenant creates an offer and files a case at the DLD, I have the above justification. Will the judge rule in my favour? SU, Dubai
A: Assuming you have a tenant already residing in your property, the rent for the next renewal will be determined by the DLD rental index and this will state what the rent should be at this renewal.
If the rental index states no change and the previous year’s rent is lower than the valuation certificate figure, you can request the higher amount.
If your tenant doesn’t agree, you can file a case at the RDC and let a judge decide if you can quote the higher amount or stick to what the rental index states.
If the unit is vacant, you can ask the market rate by comparing what other similar units are available for.
Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 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@novviproperties.com
