The Dubai Rental Disputes Center, the judicial arm of the Land Department, has confirmed that the landlord (owner), or his representatives from real estate management companies or leasing offices, are prohibited from claiming any fees at the time of renewing the lease with the tenant.
Briefing the daily “Emarat Al-Youm”, the RDC stated that the imposition of such fees is a defilement, stressing that it is not permissible to put down a special clause on such fees in the lease.
This was in response to inquiries by tenants, who confirmed that some landlords (property owners), or their representatives, charged fees for renewing the tenancy contract.
Tenants
Throwing further light on the matter, tenants in Dubai reported that there were real estate property owners and leasing offices, which charged certain fees when renewing the lease.
Mahir Jawhar, a tenant told “Emarat Al-Youm” that the leasing office in charge of managing the real estate property in which he lives, asked him to pay AED 500 to renew the lease, pointing out that when he refused to pay, the office refused to renew.
For his part, the tenant, Mohammed Ash-Sheriti, said that the real estate management office that dealt with him charged a fee of AED 700 per year when the contract was renewed, pointing out that the office included such fee in the lease under the contract renewal fees.
In the same vein, yet another tenant, Zyad Ayyash, said that he had to pay AED 1000 each year when the lease was renewed, noting that the concerned real estate management company took advantage of his desire to not change his place of residence and imposed that amount.
Warning against abuses
Judge Abdulqader Mousa, Chairman of Dubai Rental Dispute Center, said that there are abuses by some owners, or their representatives in leasing offices and real estate management companies, that take place while writing the lease, especially when the contract is renewed.
Mousa added in special statements to “Emarat Al-Youm” some of landlords impose fees on the tenant after including a clause in the contract, under renewal fees or other clauses, pointing out that this clause should not be present in the contract in the first place, because these fees or commissions are charged once, when the lease was signed for the first time.
Infringement
Moussa stated this is a violation. Although there is no clear provision in the current law, prohibition of such infringements will be fully clarified in the new rental law, which is currently under the review of “The Supreme Legislation Committee”.
He also stressed that the landlord may not claim eviction of the tenant from the real estate property either if he does not pay the lease renewal fees, which are against the law. And these fees, which are sometimes imposed by the landlord, are not considered to be the rental allowance, so it is not permissible to file a claim for eviction over its non-payment.
• Tenants confirmed that some owners charge them for renewing the contract, after including such fees under a special clause.