Questions & Answers
Consequences of tenant eviction on the landlord
Hi,
A Dubai Sports City apartment was rented out. The tenant was served a 12 months' notice (reason to sell). The tenant terminated the contract with 2 months' notice and 1-month penalty, 6 months early.
The apartment cannot be sold now due to the market conditions, and thinking of renting the apartment out again for a lower rent than before. The apartment is mortgaged so need to rent out.
Dubai rental law says that the apartment cannot be rented for 2 years if the tenant is evicted. But as the tenant terminated the contract 4 months early, does it nullify my eviction notice to him?
1. In this case, am I prohibited from renting out the apartment for 2 years?
2. Can my previous tenant take me to the Rental Dispute Center (RDC) though he ended the contract early?
3. If he is successful at the RDC what can the judge award him? He owns several apartments himself in Dubai and moved into one of them. What could the RDC award him in this case?
4. Any other implications for me renting the apartment out again bearing in mind all the above?
Any advice appreciated.
Thank you
1. In this case, am I prohibited from renting out the apartment for 2 years?
Under Article 25, read with Article 26 of Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirates of Dubai, you would only be banned for renting the apartment out if your basis for the eviction notice was possession for personal use, among others.
As your basis was “reason to sell,” it does not appear that you are banned from renting the apartment out for 2 years.
2. Can my previous tenant take me to the Rental Dispute Center (RDC) though he ended the contract early?
Please refer to the answer for Q. 3.
3. If he is successful at the RDC what can the judge award him? He owns several apartments himself in Dubai and moved into one of them. What could the RDC award him in this case?
Your previous tenant terminated the contract himself. Therefore, even if he takes you to the Rental Dispute Center, it is unlikely that the tribunal will award him any damages.
In addition to this fact, from a practical point of view, the rental market in Dubai is currently down, thus your previous tenant is unlikely to have grounds for claiming anything more than nominal damages.
4. Any other implications for me renting the apartment out again bearing in mind all the above?
Kindly specify the particular aspect or concern you wish to clarify as the above question has a very broad and general connotation.
