Rent cap rule 'will remain until the end of this year
Dubai's 15 per cent rent cap rule will be applicable until December 31 this year, said a senior official.
The rent cap condition [which states ] landlords cannot increase rents of residential and commercial units by more than 15 per cent will be valid until end of this year," said Mohammad Al Shaikh, General Secretary of the Dubai Rent Committee. He said the committee so far has no instructions whether the same rent increase restrictions would continue after the expiry of the given time period.
We are just an implementing body and have to ensure that landlords and real estate agencies are following the orders," he said.
He denied reports that rent cap would be implemented all over the UAE. "We can only talk about Dubai and as far as I know the 15 per cent rent cap rule is for Dubai only and it will end on December 31. I don't know what will happen next," he said.
His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, ordered on November 11 last year that rents should not be increased by more than 15 per cent of the annual rent until the end of 2006.
He said there was no significant increase in the number of cases regarding rent disputes.
Landlords know about the rule and they don't tend to violate this," said Al Shaikh.
But if both the landlord and tenant agree on rent increase, we can't do anything about it. However, if a tenant does not agree, he should file a case with the rent committee because he cannot be forced to sign such a contract," he said.
Al Shaikh also clarified that 15 per cent increase is the maximum limit. "Even if a tenant does not agree on this increase and he thinks that it is unjustified, he can file a case with the rent committee," he said.
Whenever a tenant comes to us to complain about a rent increase, we tell him to discuss the case with the landlord and file the case if he does not agree," Al Shaikh said.
A complainant has to pay 3.5 per cent of his annual rent as fee to the committee. If a tenant wins the case the fee is adjusted with the rent.
Tenants 'have the right to complain'
Fifteen per cent is the maximum rent increase permitted. If a tenant does not agree even on the 15 per cent increase, he can contact the rent committee and file a formal complaint.
The committee will send its team to visit the building and then determine whether the 15 per cent increase is justified or not. The official said tenants should not fear landlords because their rights are well protected.
No landlord can evict tenants without any solid reason which is non-payment of rent or other complaint. Even for eviction, the landlord has to file a case with the rent committee to decide whether he is justified," said Mohammad Al Shaikh, General Secretary of the Dubai Rent Committee. Residents can call 04-223 2323 to complain against rent hikes.
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