Neighbourhood Watch: Read tenancy contracts carefully before signing

Lease agreements are normally straightforward and their execution is a simple procedure. However, like all contracts, they should be read carefully and any questions should be asked prior to signing. Whether leases are commercial or residential, they can be simple or, in some cases, more detailed. Several provisions are often unclear and later prove contentious between landlord, tenant and often the agent who rented the property.

One common problem occurs when a tenant wishes to break his lease and automatically expects a refund from the landlord. Some landlords have a structure in place to handle the procedure in a professional manner while others do not. One landlord may allow a standard notice of one month and the refund of the balance of the rent.

Another requires two or three months' notice plus repainting of the premises by the tenant as conditions to a pro-rated refund. Yet another will only allow a break of the lease when a new tenant is found to take over the premises. In some commercial leases there may be no break clause and if post-dated cheques are with the landlord, the tenant has very little negotiating power.

There are landlords who will find every excuse possible to avoid a refund, including a reason not to refund the security deposit. The agent, if one is involved, is generally dragged into the dispute and it is never a pleasant experience for any party.

There are also cases when a new tenant is found, all requirements have been met, and the refund is still difficult to obtain. Occasionally the refund will be promised, not given, and the tenant has no option but to forego it, open a court case or address the rental board, depending on the amount involved.

While not all cases are difficult, it is worth taking precautions beforehand and ensuring these pertinent details are covered before entering into the agreement.

Another point to clarify involves the delegation of responsibility for maintenance. It is difficult to provide for this issue in the lease. In the very least it is important to ensure that the landlord has a professional maintenance company assigned to his villas and not an ad hoc situation where unqualified labour is provided.

Upon departure

In addition, upon completion of the contract, it may be prudent to know whether or not the tenant is obligated to repaint the villa upon departure. It has been the accepted norm that when the contract is finished the landlord paints the villa for the incoming tenant.

Occasionally a landlord insists that the holes in the wall caused by the hanging of pictures are damage to the property and the responsibility of the tenant. This is based on the premise that the landlord hands the villa over clean and painted and that is how he should receive it back. Any necessary refurbishment is typically taken from the refundable security deposit.

As there is no consistency with these issues it is better to be clear from the beginning. When the contracts being used are simple and consist of one page, they undoubtedly are not sufficiently comprehensive and leave a great deal of room for dispute.

The writer is the UAE-based managing director of Better Homes LLC.