Intially they were not willing to compromise on any topic - except that there is a possibility of extending the deadline (but even that they were unable to confirm by how much).
We stressed all our points as follows:
- Extension of time is a must FOR ALL and not on one to one basis. They must revert asap as people are already are chasing for update and must clarify way forward.
Their response was that they cannot confirm anything until they discuss with management but would confirm by tonight - they have since called us and said one week extension confirmed. We have stressed that this is not sufficient and minimum of 2weeks should be considered.
Wahida the Hampton's representative has agreed that she will discuss with management and revert to us by tomorrow if management have accepted 2 weeks extension.
- EMAAR should clarify the law to those tenants who will be faced with new landlords - we suggested that they contact the rent committee in the municipality on behalf of the tenants (since it would cost us 2000 dhs to file a claim) and then issue statement addressing the several scenarios possible - i.e. tenancy expires in one month, tenancy expires in 1year, landlord wants to rent what maximum increase can he impose, landlord wants to move in what increase can he impose etc.
They have responded that they will not state anything on behalf of the municipality as the law might change(!) our response was that they should at least clarify what the law is currently. They have agreed that they will contact the rent committee and circulate if they get a WRITTEN response from them - otherwise they will not state anything formally.
- EMAAR explained that by default our contracts will be renewed by another year - the law states that tenants must be given 12months notice if contract is not to be renewed hence we will get automatic renewal. They will not state this in writing since they don't have it in writing from rent committee. We have requested that they clarify on our behalf from rent committee. As we all know, the law in Dubai is sometime vague in places. It is obviously rather hard for EMAAR to claim tenants won't face huge cost increases or rapid eviction while on the other hand stating that they won't put to us in writing what they believe the law is. How can they be sure tenants will be protected from rapid eviction if they cannot actually confirm the law in writing?
We have pushed them to include a clause in the tenancy agreements which obliges the new landlords to renew tenancy for another year even if they believe that the law states that he has to anyway. They said they will discuss internally and let us know. From a logical standpoint, if they genuinely believe that the law does provide that the landlord renew tenancy for at least another year, then they should have no hesitation explicitly adding this to tenancy contracts for tenants prior to selling the properties, which would safeguard the tenants against a change in the law or some other interpretation of the law to what EMAAR claims to understand. This alone would greatly assist tenants, as well as ensuring that Dubai's vital steps to reduce inflation are kept on track, something that will not happen if the rent cap laws can be easily bypassed. Reducing inflation is critical - some surveys suggest the cost of living in Dubai is increasing by 28% per year, something that will destroy Dubai's competitive business position if tough measures are not taken and enforced. The future prosperity of Dubai should not be sacrificed for short term gain - it is vital that the economy is brought under control and that companies can make long term investments here knowing that the cost base is stable. At present, the biggest deterrent to companies is not just the high level of costs, but the lack of clarity in what costs might rise to this year or next.
- We have requested that they offer tenants who move (after 12months given the above) they offer further assistance e.g. waiving the estate agency commission - they agreed
- We have requested that they contact DIC re disconnection penalities which applies to TV/internet/phone. They have refused saying that this was not their concern
We strongly feel that they can come to some agreement with DIC re the above. If even 100 tenants move from one block to the next and need to reconnect with DIC surely there is a way to come to an agreement so tenants don't have to pay disconnection fees and then reconnection fees!! These are perhaps the least of the expenses but none the less important.
- We have discussed that they should offer those who buy either 20% discount or deduct their total paid rent. They have not agreed to any of these suggestions but will discuss.
In summary all we have received from them is the following:
- extension of deadline by 1 week with possibility of another week
- Contact Rent committee on our behalf and IF THEY RECEIVE ANYTHING IN WRITING they will forward to tenants
- Discuss with management any other concessions for Tenants who wont buy
- Discuss with management further reductions on price to those interest to buy - either 20% discount or deduction of rent
- To arrange another meeting next week to follow up
- To circulate any concessions etc to tenants once above meeting takes place
We understand that some tenants are obviously keen to get a running commentary of efforts, but given time and other constraints this is not necessarily possible. However we are doing our best to post information as and when we have it to keep fellow Greens tenants up to date. We hope that further meetings will take place and that we will get information back and some progress on the points raised above.
