Dubai: A sharp spike in rents is not the only worry for tenants this year. Landlords are forcing residents to pay extra for new charges such as maintenance fees, “unreasonably” high commissions and separate parking fees.
“My building owner has sent me a notice asking me to pay Dh35,000 extra rent this year. I was paying Dh140,000 rent for a 3-BHK, which was already increased last year. When I complained, they said I was free to leave the apartment,” said a resident of a building in Mankool, Bur Dubai. This, when the gym in the building is out of use for three months and maintenance is poor, he added.
Despite a five per cent rent cap introduced by the real estate authority, most areas have witnessed hikes of 10 to 20 per cent.
According to the latest report by Jones Lang Lasselle, rentals for apartments and villas were up 10 per cent in the first three months of this year in several residential areas including Burj Downtown, Palm Jumeirah and Dubai Marina.
However, online classified listings and property agents indicate some areas have seen an increase of more than 20 per cent.
Meanwhile, to ensure higher rentals many landlords are sending renewal notices as early as five months in advance even though the required period is three months. Not just that, many property owners have started slapping on new charges which in some cases amount to 25 per cent extra outgoings for tenants.
“The property manager told me I have to pay Dh57,500 rent this year and a Dh3,000 non-refundable maintenance fee. All the maintenance they have done is re-paint the building from the outside. I was paying Dh45,000 last year. I will have to move out,” said Gautam, a Bur Dubai resident.
In some buildings, landlords have begun adding parking fees of Dh3,000 and upward.
Another Bur Dubai resident said he has no option but move out. “I had nearly finalised a new apartment even though the price was still about 20 per cent more than what I paid last year. When I went to sign the contract, I was shocked when the property manager told me I had to pay Dh5,000 as commission which was Dh2,500 earlier.”
A property owner said: “There is an overall increase in rentals and we are focusing on vacant apartments. The landlord has the right to increase the rent by a certain per centage, we are not facing any issues from the tenants. Most of the new customers are willing to pay the increased amount.”
