Am I obligated to settle compensation for the rent difference after evicting a tenant at their request?

Dear Questioner,

The old tenant is asking for compensation based on the difference between the old rent they were paying and the new rent you are charging the new tenant.

However, you are not legally required to compensate your old tenant for the difference in rental amounts between their old lease and your new lease.

Rent prices in Dubai are typically negotiated freely between the landlord and tenant, and when a tenant vacates, the landlord is entitled to lease the property at the prevailing market rate to a new tenant.

The only time a compensation claim based on rent difference would be reasonable is if you had agreed to a fixed-term lease with the old tenant and ended the lease prematurely at their request or without sufficient notice.

The claim for shifting expenses (costs incurred by the old tenant when moving to a new property) is more reasonable.

Under the Dubai Tenancy Law, landlords are not explicitly required to cover the cost of a tenant’s move when the lease is terminated, but a fair and mutually agreeable settlement can include these costs if the tenant has incurred substantial expenses related to relocation, especially if you had an agreement or understanding regarding moving out.

For further assistance, kindly share your WhatsApp number.

Dear Questioner,

Thanks for your inquiry!

According to UAE law, the landlord has the right to terminate the tenancy contract and request repossession of the property for personal use or for the use of his family members.

In this case, the landlord must give the tenant a written notice at least 90 days before the termination date.

If the tenant agrees to vacate the property upon receiving the notice, the landlord is not required to pay any compensation.

However, if the tenant refuses to vacate the property, the landlord can file a case with the Rent Dispute Settlement Committee to terminate the tenancy contract and request compensation for any damages incurred.

In your case, since the tenant requested to vacate the property, you are not required to pay any compensation.

However, if you have agreed to pay compensation as a gesture of goodwill, you are only required to pay the difference between the old rental amount and the new rental amount the tenant is paying for his new property, plus any expenses he incurred for shifting.

It is important to note that the tenant is not entitled to claim the difference between the old rental amount and the new rental amount you have contracted with the new tenant for your property.

This is because the new rental amount is not relevant to the tenant's situation and it is not your responsibility to compensate for any changes in the rental market.

In conclusion, you are only required to pay the difference between the old rental amount and the new rental amount the tenant is paying for his new property, plus any expenses he incurred for shifting.

Kindly do not hesitate to contact us via phone or email for further guidance.

Greetings,

Welcome,

Based on what you've mentioned, you should settle the difference between the old rent your previous tenant was paying and the new rent contracted with the new tenant, in addition to the shifting expenses incurred by the old tenant.

However, it would not be fair to pay the difference between what your old tenant is paying in their new property with a new landlord and the rent you were charging in your property. Furthermore, he is not entitled to compensation for changing his place of residence unless it is stipulated in the contract.

It is advisable to review the terms of your rental contract with the old tenant and ensure compliance with what is legally stated.

If you have doubts or questions, consulting with a lawyer specializing in property matters would clarify your rights fully.

Our office specializes in real estate matters, and we are here to assist you in ensuring proper legal procedures are followed.

We are honored to provide you with legal support. For further inquiries about your topic, you can come to our office or contact us via phone, WhatsApp, or email at [------------].

Legally, you only have to compensate the tenant for the difference in rent if they are paying higher rent at their new property, plus moving costs.

Any other claims related to the rent you charge the new tenant are unrelated to the old tenant’s dues.

As of now, you can settle this issue for a lesser amount. The claim he is asking for is not fair. We can submit the defense that the eviction was done at the tenant's request and was not an illegal eviction.

We will let you know the procedures in detail and how we can submit the defense, either through negotiation or court.

Kindly share your WhatsApp number to discuss this further.

Thank you for your inquiry!

If you mean that the eviction was carried out at the tenant’s request, and you have correspondences or emails indicating that the eviction was agreed upon for a specific date, then the eviction is based on mutual agreement, not just a notice.

In a case I handled with similar circumstances, compensation was denied on this basis.

In general, the court will assess compensation based on the difference in rent and the cost of moving, as well as any emotional distress, which is at the judge's discretion.

It is essential to review the details and documents of the case to guide you more accurately.

Please contact me if you need further assistance at [---------].

Thank you for reaching out with your inquiry regarding the tenant’s compensation claim!

I understand the difficulty you are facing and appreciate your willingness to reach a fair settlement.

In situations like this, the Dubai Rental Dispute Center (RDC) considers whether the landlord had valid reasons for not using the property as stated and evaluates the fairness of the compensation being claimed.

Based on your description, you are prepared to compensate for the tenant's shifting expenses and the actual difference in rent incurred for leasing a new property.

This approach is generally reasonable, as it aligns with the principle of mitigating any financial hardship caused to the tenant.

However, it is essential to ensure that the calculation of compensation is justified and well-documented to avoid any potential dispute escalation.

I would be glad to assist you in reviewing the tenant’s claim and negotiating a fair settlement to protect your interests while resolving the matter amicably.

I invite you to reach out to me via WhatsApp or phone at [---------] to discuss this further and determine the best strategy. I am here to help you navigate this situation effectively.

Best regards,

Suhail Rana