Housing scam revealed: Office space invaders

Offices in commercial buildings are being used as bachelor pads in certain parts of the city, XPRESS has discovered.

Flats in dozens of commercial and residential buildings in Frij Al Murar district in Deira which are registered as offices, were found to have been rented out to bachelors as shared bed spaces, according to residents there.

The flats – mostly studio apartments – accommodate between six and eight people.

Watch lords

The building watchmen double up as landlords and collect rents on a monthly basis in addition to their rental commission.

"I moved in 10 months ago after a grocer arranged for me to meet the building watchman. I had to pay Dh2,500 to the watchman as key money and Dh1,000 to the grocer as commission. The rent for the flat was Dh3,300 per month, which, along with the money I paid, was divided between myself and seven others who moved into the flat," said Paul K., a tenant in an office flat in Frij Al Murar.

According to residents, it is the watchmen of these buildings who are brokering the deals.

"This is a scam," stated Renjith, a taxi driver who lives in one of the office flats. "I have lived here for nine months. After four months the watchman stated that the tenants' licence had expired and that he had to raise the rent. Five months later he returned to inform me that the landlord had problems and if I did not agree to a raise in the rent, he would kick me out."

Other tenants also agree that these shift and shuffle tactics only benefit the watchmen, who pocket between Dh1,000 and Dh3,000 when they rent out a flat.

Illegal practice

According to Ahmad Ali of Dubai Municipality's Building Inspection Unit, misuse of commercial or residential apartments invites fines and blockade of all trade activities for the company involved.

An Inspections Unit official revealed that these scams are usually the handiwork of those behind bogus companies. "When people register a company, they have to present a valid office address, therefore they rent out these premises and then sublet it as bachelor apartments as a source of income; meanwhile every company gets granted a certain quota of visas which are usually sold," he said.