UAE Property Crisis: Tenant Faces 40% Rent Hike or Eviction as Landlord Issues Ultimatum Amid Rising Market Pressures

Post by: Elena Malik

I live in a five-bedroom villa in Dubai on a three-year lease, which ends on April 30 of next year. Recently, my landlord sent me an eviction notice. Initially, he contacted me with a demand to increase the rent by 40 percent compared to my original rent. According to the Dubai Land Department rent index, he is only allowed to increase the rent by 5 percent for this property. When I refused his demand, he issued the eviction notice on May 24, claiming he needed the unit for his personal use.

However, I know that he has no intention of living here since he already resides in a larger villa. When I met him a few weeks ago, he asked me to vacate, stating that he had received permission from the government to build another structure on this plot to enhance its value. This seemed like a negotiation tactic because he later offered to delay his plans if I agreed to a 28 percent rent increase instead of 40 percent. He made it clear that he was not interested in renewing the lease otherwise.

I'm concerned about whether he can re-let the villa to someone else if he starts the new construction. According to UAE law, isn’t he barred from renting the villa for two years if he cites personal use as the reason for eviction? If he rents it out during this period, what compensation can I claim? Should it be the entire original rent amount or just the difference between my old and new rent, which I will pay at a new place? Is there any way to prevent him from renting out the property after I vacate? He has repeatedly claimed that he would re-let the villa within two months of my vacating and is not concerned about the two-year restriction.

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Is it possible for me to stay in the villa after the 12-month eviction notice period ends and fight the eviction in the Rental Dispute Committee, while expressing my willingness to renew the lease with the 5 percent increase allowed by the rent index?

Answer:

First, it is important to stress that a landlord cannot evict a tenant just to re-let the property to someone else, regardless of whether they start work on a new structure or not. If the eviction occurs, the landlord is not allowed to re-let the property for two years. You are correct that the burden of proof is on the landlord to demonstrate that they do not own another suitable property that can be used instead.

If your landlord re-lets the property after your eviction, you can file a case with the Rental Dispute Committee (RDC) and seek compensation. The actual compensation amount is determined by the judge, but in previous cases, it has been equal to the original rent amount, so you might consider this as a potential figure. However, no exact amount can be guaranteed as it is entirely up to the judge.

There is no way to restrict the landlord from re-letting after you have vacated other than to inform him of your rights and his obligations under the law before you leave. Monitor the property, and if he violates the law, gather proof and file a case with the RDC.

It is unlikely that the landlord will allow you to stay in the property, pay only the 5 percent increase, and simultaneously fight him in court. It might be better to let the eviction proceed and build a strong case to win in court.

Q: My estate agent represents the landlord. The landlord mentioned that he might sell the property while signing the rent contract. I asked him to send this to me in writing. My contract is up for renewal on September 20. The agent recently called, asking me to vacate. I told him this was short notice. Can the landlord evict me?

A: If your landlord wants to evict you for the purpose of selling the property, he must do so through a notary public or registered mail and provide you with 12 months' notice from the date of eviction. An email from the landlord requesting the same is not legally sufficient.

Vacating your current property early or at all is entirely up to you. If you do not wish to leave, the landlord can only evict you by sending the 12 months' notice through the proper legal channels. Other than this, he cannot forcibly evict you, and you have the right to stay.

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