Abu Dhabi: In view of the new rent cap removal in the capital, residents must recognise that legal action that may previously have been warranted in addressing rent hikes above five per cent may no longer be applicable in today’s situation.
“Landlords have the ability to request that their tenant be evicted if the occupant is unwilling to meet new payment requirements,” said Abu Dhabi-based lawyer Ali Al Abbadi. “People renting out apartments must know this so that they are not surprised if it happens. However, if the landlord refuses to renew their contract without getting legal approval, then the contract stays as is.”
The Rent Dispute Settlement Committee previously resolved issues concerning tenants who could prove that their apartment owner asked for an increase in rent that exceeded the cap. After the Committee’s approval, tenants were able to make payments to their landlords through the Committee, thereby ensuring that both parties were treated fairly.
“However, this is not the case any more,” Al Abbadi said. “If renters feel that the money that property owners are asking for is unfair, then they can still approach the Rent Dispute Settlement Committee, but the procedures will be different,” he added.
In this case, complainants may make their case to the judge but the decision is ultimately up to the latter.
“The judge will ask for the assistance of a technical team of experts who will examine the property and then provide a report containing an approximation of its worth. Based on this estimation, the judge will make a decision and inform the tenant,” the lawyer said.
Meanwhile, some legal consultants said they had no knowledge about new procedures for tenants after the rent cap removal. An Abu Dhabi-based lawyer, who declined to be named, revealed that the new rent laws give more rights to landlords than tenants.
“Unless there’s a clause in the contract that restricts landlords from increasing the rent by up to a certain amount, there is nothing that can be done at the Rental Disputes Settlement Committee — unless there’s a new procedure I am unaware of,” he said.
“On the contrary, tenants are now more vulnerable to what may seem like unreasonable changes to their rent. I have heard of many cases where rents have gone up by more than 50 per cent and there was no choice for the resident in those areas except to find an alternative accommodation,” he added.
The consultant also stated that individuals living in older structures for 10 years or so have been paying less than newer renters moving into the same building. “So it’s natural that landlords will raise their rent so they can meet the market price.”
