DUBAI // Property owners may be forced to reveal to potential tenants whether they have paid their service fees.
Regulators will hold talks next week with landlords, tenants, legal firms and owners' associations to tackle the problem of unpaid fees.
Tenants and developers have clashed in recent months after companies threatened to cut off services to apartments and block access to facilities because of outstanding community services charges, which should be met by property owners.
The Real Estate Regulatory Agency does not release information about who has paid service fees or not, but if new rules are introduced that could change.
Mohammad bin Hammad, a senior director at Rera, said the information could be beneficial to potential tenants. "I think it's a good idea and something we can study more closely," said Mr bin Hammad.
"We need to solve this issue of non-payment of service fees and this could be a potential way of dealing with it.
"We need to get the views of the main stakeholders and then we can look at the best way forward."
Adnan Khan, who owns an apartment in Al Sheef 2 tower in JLT, said the proposal would benefit prospective tenants.
"Our interim owners' association already informs tenants where they stand regarding the payment of service fees," he said. "As a result we have an almost 100 per cent occupancy rate in our tower.
"I would welcome Rera contacting us about this issue so that we could put our views across."
A British expatriate who lives in Marina Residence on The Palm, which recently had pools drained by Nakheel because of unpaid fees, also backed the plan.
"Anything that can bring better regulation is a good thing," said the woman. "We are looking to move because of the issue, and it would be nice to know if the landlord we will be renting from next has paid before we sign."
Marguerita Haarhooff, a South African who bought an apartment in the Shoreline development on the Palm in 2011, said the proposals "would give tenants a better idea of what the landlord will be like".
She said landlords would be encouraged to pay their fees "if they know they might miss out on tenants because of it".
However, real estate and legal experts have given mixed responses to the proposals.
"Until we see something official from the Land Department or Rera, it's difficult to say much as we don't have a point of reference," said Ludmila Yamalova, a property lawyer. "I'm cautious about speculating until we see something in a more formal form."
She said any new rules need to tackle the underling problems. "This initiative fails to tackle a problem that is at the heart of the issue - namely the ambiguity and lack of accountability in service charges."
She said many owners had legitimate concerns about how service fees are set and how they are spent. "Service fees are high, but the quality of service is far from par."
Dean Cheesley, senior legal consultant at DLA Piper, said the proposals would not affect the buyer/seller relationship.
He said: "The current requirements of the Land Department dictate that a seller will be permitted to transfer property to a buyer only upon presentation of a no-objection certificate from the master developer confirming that all service charges have been paid."
He said this system was working well, provided "sufficient protection" for anyone planning to buy property and reassured them there were no outstanding fees that could result in withdrawal of services.
"In terms of landlord/tenant relationships, this is primarily where the issue lies, and it affects residential lettings the most," he said.
Matt Green, head of research & consultancy UAE for CBRE Middle East, said new rules would protect tenants.
"We have been aware of increasing numbers of service interruptions being imposed on units where service charge obligations have not been met, with pools, parking and other facilities often suffering disruption as a result."
Further tightening of property laws and regulations are expected as Dubai tries to create a more attractive location for investment, he said.
nhanif@thenational.ae
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
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