Sunday, March 4, 2007

Potential buyers beware! - understand your rights before you buy our homes

Those tenants who cannot or choose not to purchase their Greens apartments now face the prospect of their homes being put on the open market. If the apartment is sold promptly as Emaar clearly intends, you can expect notification shortly of who your new landlord is.

It is important that tenants in the Greens apartments that Emaar is selling understand their rights. Due to the rent cap laws, the new owner will almost certainly want the tenant out at the earliest possible opportunity in order to either take possession for himself, or rent to a new tenant at the market rate. But this is exactly the kind of act that the Rent Committee was set up to prevent. While we have been unable to get Emaar or Hamptons to state on the record what their understanding of the laws are, the reason may well be because they'd rather potential purchasers not know.

Here is an article demonstrating the protection that the Rent Committee can offer tenants not just against eviction, but even against having their tenancy limited via the proliferation of 'one year' clauses:

The rent committee steps in to protect a tenant in the Springs

Tenants (and potential purchasers) take note: the rent committee is not a toothless talking shop, but wields real power to protect tenants rights. It can not only prevent rent increases above the government's rent cap limit, but can prevent evictions and can even stop the landlord trying to impose a new lease agreement that gives him possession after one year.

Since the vast majority of Greens tenants wish to stay put, it is important for potential purchasers of our apartments to understand what they are buying: a property with a sitting tenant who will do whatever he or she can to stay put, with the protection of the rent committee. Most tenants will resist any attempts at eviction, unlawful rent increases or changes in the terms of their leases that require them to vacate the property after one year.

Potential landlords beware! Emaar is selling you an apartment at market rate, but you have a sitting tenant who might enjoy capped rent and tenancy protection for years to come. It doesn't look such a good investment now does it? Especially when for a similar price you could buy an empty apartment somewhere else and get 40-50% more income immediately, and just the same capital growth.

5 comments:

Anonymous said...

I just found out today when my office rent has come up for renewal that properties in Dubai Internet City are exempt from the 7% rent cap and landlords can still do as they please (it's in the small print of the new laws). It may seem obvious, but can someone please confirm this isn't the case for Greens/ Lakes? I suspect Emaar would be more than happy to take them as being in the internet free zone to make the properties more saleable.

Anonymous said...

Has anyone received any letter from EMAAR regarding the new landlord, I heard a roumer that the whole portfolio will be sold to an investments groups mainly Iranians who are fleeing from Iran before the war with tones of money they need to invest immediatly, and buying a property with an existing tenant seems like a very good choice, regardless if the rent is less than the market prices.

Anonymous said...

Re: the Dubai Internet City rent cap exemption detailed above; I have recently been allocated an office at DIC. I think now is the time to make plans to leave Dubai. After a year, DIC are either going to hit me with a big rent rise, or do an 'Emaar' and sell the office to a new landlord who will screw me or want me out. Either way, not the great stable place I was promised to build my business.

Once the big Dubai government quangos have forced all the businesses out, I wonder who is going to live in all the lovely empty apartment blocks and villas they're building? Typical short term Dubai planning... they only started building a railway system when the queues were backing up down 5 lanes of motorway and a journey from the Greens to the city centre took 2 hours. Now they're building tons of houses and blocks of flats while ramping up the pressure on businesses to move elsewhere.

Anonymous said...

Did Hamptons call you ?It's really funny , today they called me and said till tomorow you should pay down payment !
Last week they said till end of next week you have time, but now they change what their said.

Jonathan said...

The eviction process is rather complicated and varies from state to state. However, the landlord may evict a tenant for nearly any reason if the proper procedures are followed. Some reasons which may cause you to be evicted even with a lease are: nonpayment of rent, lease violations, obvious and purposeful damage, unlawful acts within or upon the premises, noise complaints, and interference with other tenants. Under any of these situations, a three-day notice is all that is necessary to remove a tenant from the unit. After notice is given, the landlord is required to give you an opportunity to correct the non-payment or the problem, and also give you complete contact information and hours in which to do so. It really does not help to attempt to hide from the landlord so that notice cannot be served, as it can be tacked to the door, dropped off at your place of work, or given to anyone at the residence over the age of 18. For more details visit us at sitting tenant rent arrears.

 
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