Abu Dhabi: Landlords cannot convert the residential buildings into hotel apartments, a senior official told Gulf News.
"We have rejected a number of applications from landlords who wanted to evict tenants to convert the property into hotel apartments," said Mohammad Rashid Al Nuaimi, head of the Rent Dispute Settlement Committee in Abu Dhabi.
"We strictly deal with the landlords who try to evict the tenants to lease out the apartments on higher rents," said Al Nuaimi while explaining the legal ground of eviction in an exclusive interview with Gulf News.
He detailed the number of cases filed and settled since the committee was constituted in December 2006, functioning of the sub committees, and provision of the appeal and provision to deposit rent with the committee.
Gulf News: Several residents are complaining that landlords are trying to evict them to convert the property into hotel apartments or lease it (property) on higher rents to new tenants.
What are the valid legal grounds to evict the tenants?
Mohammad Rashid Al Nuaimi: We never permit landlords to convert the residential units into hotel apartments. We have stopped large number of such attempts whenever such disputes reached before us.
Failure to pay rents as per the lease agreement, unauthorised subleasing, more number of occupants in the property than generally accepted number, to demolish the building for reconstruction or modification subject to a number of conditions, landlord himself/ herself wants to occupy the property [subject to several conditions] - are some of the important valid reasons to evict a tenant according the law [Article 23 of law No 20 of 2006 which regulates the relationship between landlords and tenants and describes termination of lease or eviction].
However, we permit eviction if landlords satisfy all conditions set by the law, such as - notice to tenants before six months, permission from relevant authorities to demolish building or proof of genuine need to occupy for personal use and others.
Landlords are more informative about laws and try to take advantage of it, so we always demand proper proof for their claims. If a landlord obtained a judgement from rent committee to evict a tenant for demolition or personal use of the property, but later found that he/she did not use it for intended purpose, the tenants can claim reoccupation of the building or compensation, subject to the conditions stipulated by the law.
If a landlord does not respect the existing rent cap and demands higher rent increase, can any tenant approach the rent committee? What is the procedure to file a complaint? What is the cost?
Yes, can approach the rent committee. Nobody is above the law and all landlords are bound to respect the existing five per cent rent cap [of 2008] which remains effective until the new cap is announced this year.
The complainants have to fill out a formal complaint form [in Arabic] available at our office in which they have to explain the complaint, and give the details of building number, locality, address and contact numbers of both parties (complainant and landlord) etc.
They have to attach passport copy and the lease agreement (If not in Arabic, produce Arabic translation). They have to deposit four per cent of the annual rent. If the committee decides in favour of the complainant, the amount will be refunded to him.
On receiving the complaint, the committee will send an open notice (not in sealed cover) to the other party by courier within two to three days. The courier company will report to the committee when they delivered the notice (if addresses not available it will be pasted on his / her door). The other party [defendant] has to file a reply within 15 days and based on it, the committee will fix a hearing [generally within one month]. Many of the cases are disposed of within three months.
If landlord refuses to accept the rent after a dispute on rent increase, with an ill intention to evict the tenant on the ground of non-payment of rents, what can a tenant do? What is the procedure to deposit the rent with the committee? How many tenants have deposited the rent with the committee?
If a landlord refuses to accept the rent, the tenant can deposit the rent [either for six months or one year and if after the renewal date, with five percent increment] with the rent committee immediately. They do not need to file a complaint for this. Upon receiving the rent, the committee will ask the explanation from the landlord. Either he can take the deposited rent from the committee [then the issue is settled] or he has to file a complaint against the tenant which will go through the routine procedure.
About 3,578 tenants have deposited the rent since the committee was constituted [in December 2006] .Many of the landlords accepted the rent from the committee, without filing a complaint against tenants.
Do you find more number of complaints against any one particular group of landlords like real estate companies/ agents or individual property owners?
There is no such particular trend. The complaints against real estate companies/ agents or individual property owners are almost equal in number.
How many cases has the committee settled so far? Does the committee work on all official working days? How many sub committees are dealing with the complaints?
The committee settled 4,937 complaints in 2007 and 1,863 in 2008. The number of complaints declined in 2008 to 3,078 from 5,600 in 2007. It received 311 complaints during the first two weeks of its inception in mid December 2006. Six sub committees with five members each [benches] are dealing with the complaints.
How many cases have been settled amicably? What about the dismissed complaints due to the absence of complainants?
Most of the landlords being adamant, very few cases have been settled amicably. Every day, one or two complaints are dismissed because the complainants fail to show up. We take such extreme step to warn the public not to waste the time of the committee and the other party. Once dismissed, the complainant has to file the complaint again.
What are the provisions of appeal? Can all parties go for an appeal against the decision of the committee?
Parties can go for appeal if the annual rent in dispute is more than Dh100,000. But you have to file appeal within 15 days. Two appellate committees [chaired by the head of the committee] will deal with the appeals. The decision of the appellate committees is final and parties cannot approach any other court after that.
Any plans to establish branches of the committee in Al Ain or Western region so that residents in those areas need not travel to Abu Dhabi? Majority of the cases are from Abu Dhabi Island and adjacent areas. Just three to four per cent cases are from Al Ain and from Western region, it is less than two per cent. It is not feasible to establish branches in those areas to deal with such a small number of cases [at the moment].
Does your experience suggest landlords are cashing in on the shortage of housing units in Abu Dhabi? What was the highest rent increase demanded by landlords?
Some of the landlords do try like that. There are instances landlords demanded even 150 per cent increase.
Statistics
- Tenants who deposited rent with committee since Dec 2006: 3,578
- Cases that rent panel settled in 2007: 4,937
- Rent disputes in 2008: 1,863
Your comments
Praise goes to the Authorities and committee. Please do more to help the residents by giving the landlords/real estate companies period of three years if they wish to increase the rent they can do so and not more than the percent allowed by the authorities. This will encourage more investors.
Abdulhaleem Khaled
Dubai,UAE
Posted: January 25, 2009, 15:26
Authorities should waive the rent cap this year due to financial crisis and to help the people who have been affected by the crisis.
From a reader
Dubai,UAE
Posted: January 25, 2009, 13:48
Some landwords are very nice. Those are the ones who follow the rules.
Some landlords will evict, harras, murder(maybe in future) the tenants to achieve the amount.
There will be no issues if everyone(even landlords) follows Government rules and regulation and act accordingly.
Ali Mohsen
Abu Dhabi, UAE,UAE
Posted: January 25, 2009, 12:41
It is high time the residential apartment's rents in Abu Dhabi to be standardised depending on areas (where the respective building is located) within Abu Dhabi. It is observed that one tenant pays twice/thrice the rent what other tenant in the same building is paying for the same facilities both are using.
Hope this standardisation will be implemented in time to come.
Rakesh Ramakrishnan
Abu Dhabi,U.A.E.
Posted: January 25, 2009, 12:27
I have never this happening that in a building people who are living on the same floor pay rental in different amounts like one pays Dh70,000, the next door neighbour pays Dh110,000 and opposite door pays Dh200,000.
The committee should get involved and standardise the rental to a fixed amount for all similar flats in a same building.
Mohammad Haniffa
Abu Dhabi,UAE
Posted: January 25, 2009, 11:02
As per the decree issued by his highness Sheikh Mohammad and ruler of Dubai, there is a freeze for the rents in Dubai and nobody is allowed to increase any sort of rents. But one of my friends just got a notice yesterday saying that there would be a Dh15000 increase in the rent whereby the renewal is due in a month. How and when will there be any action against these landlords??????
Mansour Mahmoud
Dubai,UAE
Posted: January 25, 2009, 09:44
Nowadays if an agent gets you a room i.e. for sharing accommodation, if the rent is Dh3000 then he wants Dh3000 also as a fee. What can the committee do to help us we are suffering too much.
Aisha Mohammad
Abu Dhab,UAE
Posted: January 25, 2009, 09:23
All the praises for authorities. May God keep Abu Dhabi safe and make it prosper.
Mohammad Moin All Haque
Abu Dhabi,UAE
Posted: January 25, 2009, 08:15
