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Dubai, UAE

How is compensation calculated for evicting a tenant and renting to someone else?

Dear Lawyers,

My former tenant filed a 200k compensation case against me because I did not move into the house and rented it to another tenant. There was only one hearing, and in the next, I received the judgment to pay 100k in compensation.

The breakdown states 40k as the rent difference for each year and 20k as moral damages. I am unable to understand how this amount was calculated, as the rent difference between my old rent and his new rent is 30k per year.

Also, why have I been asked to pay the rent difference for 2 years?

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KHE Legal Consultancy
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10 Dec 2024, 10:46

Hello,

You mentioned that the rent difference between your old rent and the new tenant's rent is 30k per year.

However, the court seems to have awarded 40k per year as compensation, which means that the tenant could have potentially suffered more than just the rent difference, possibly due to market conditions, availability of properties, or the specific facts of the case (like relocation costs or time spent searching for a new place).

For a detailed discussion, kindly share your WhatsApp number.

10 Dec 2024, 10:50

No. The old tenant has submitted his new RERA contract, which clearly states his new rent is 160k. My old rent was 130k, which is 2 years old, and I did not even increase the rent in the second year.

He has also added 2,500 AED as shifting costs. So how can they award 40k? And why was it awarded for 2 years?

His memo only cites my legal notice as an argument, with no mention of any other damages.

10 Dec 2024, 10:53

Kindly share your WhatsApp number.

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London Center for Legal Consultancy Office
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10 Dec 2024, 10:50

According to UAE law, if there are clauses in the contract that require compensation or rent differences, the court determines the amount based on legal standards.

In your case, the judgment may have included an estimation of amounts for two years according to contract terms or the court's assessment.

You can reach out to our office via WhatsApp for further inquiries and detailed information, as we specialize in such cases.

10 Dec 2024, 10:50

Kindly contact us for further assistance.

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Rashid Khalil Obaid Advocates and Legal Consultancy
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10 Dec 2024, 10:52

It seems the court has made a decision based on the evidence presented by your former tenant. It's difficult to provide specific legal advice without reviewing the case details.

It's possible the court considered factors like potential rent increases over time and the inconvenience caused to the tenant due to the unexpected change in tenancy.

We will review the judgment, and if possible, we will file an objection or appeal against the judgment.

Kindly share your WhatsApp number to discuss this further.

10 Dec 2024, 10:59

As I said, there was no other objection he had raised. It was just my legal notice. My old rent was 130k for the first year and 130k for the second year. Although I was eligible to increase it by 10%, I did not, so I suffered a loss of rent in the second year when he was my tenant.

The rent difference for him today is 30k. The court has not even considered that, had he renewed with me, he would have been liable to pay 143k, not 130k, as per the RERA index. So how can it be 40k, and why for 2 years?

10 Dec 2024, 11:06

Regarding the rent, there might be some mistakes in the judgment.

However, it will be calculated for two years because, according to the law, the landlord cannot re-rent the property to a third party within two years after eviction. That's why.

10 Dec 2024, 11:06

So, the two years will be the basis for calculating the compensation amount.

10 Dec 2024, 17:37

I know some other personal case done recently. The tenant new rent difference was 55k . so court awareded the tenant 55K (only 1 year difference) + 17k (moral) .Then y in my case it is 2 years difference.

11 Dec 2024, 04:26

Sometimes the judge might be using their discretionary power. So that's why the difference in the number of years they take into consideration

Laila Hamza Al Mulla Advocates and Legal Consultants
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10 Dec 2024, 11:01

Dear questioner,

As per the rule, the compensation is calculated as double the difference between the current and new rent. Additionally, the tenant can seek compensation for mental agony or other damages.

We need to appeal the case with certain strategies.

Kindly share your WhatsApp number to discuss this further.

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Al Fahad Legal Consulting
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10 Dec 2024, 11:13

Dear Questioner,

Thank you for reaching out regarding the compensation case and the judgment issued against you. I understand that the breakdown of the compensation amount is confusing, especially regarding the rent difference and the moral charges.

Here’s an explanation to help clarify the matter:

- Rent Difference Calculation:

Based on the judgment, the court has decided that you owe compensation for the rent difference for two years.

The rent difference is calculated based on the difference between the rent your old tenant was paying and the rent the new tenant is paying.

While you mentioned the difference for one year is AED 30,000, the court may have considered factors such as:

  • The contract terms: If the contract with the old tenant specified a certain rent increase that wasn't honored, or if the new tenant was paying more than the old tenant.
  • Duration of the breach: The court may have taken into account that the tenant could not occupy the property for a prolonged period, so it could have been calculated as a two-year compensation, assuming the property was unavailable or subject to a delay in moving in.
  • The nature of the agreement: The court may have interpreted the agreement in such a way that it deemed compensation for two years, as the tenant was likely deprived of the property during that period.

- Moral Charges (AED 20,000): The moral charges are typically awarded in cases where a party has suffered from undue stress, inconvenience, or hardship caused by the actions of the other party.

This amount may relate to the fact that the tenant was prevented from moving into the property, or there was a loss of the enjoyment of the property for a certain period.

Given that there seems to be a discrepancy between your understanding of the rent difference and the court's calculation, I would recommend the following steps:

- Review the contract: Ensure that all clauses regarding rent and property use are clear. The details in your agreement with the old tenant may provide more insight into the rent discrepancy.

- Appeal the decision: If you believe the amount is unjustified or there was an error in calculation, you have the option to appeal the court's decision. We can assist with filing an appeal and presenting a more thorough defense based on the facts and evidence.

- Clarify the moral charges: It may also be helpful to request a detailed explanation from the court regarding the moral charges to ensure they were appropriately awarded.

Please feel free to reach out if you would like to discuss how we can move forward with this matter, including the possibility of appealing the decision.

Best regards,

Mohammed Salah

10 Dec 2024, 17:41

This tenant had not suffered any moral damage. Because he wanted to leave that house at any cost due to his personal family reasons. But i dont have any written proof of it. and morever, when it was time due for him to move out, he asked for 1 week extension in my house as his new house was not ready. and we happily gave him that extension without any issue.

10 Dec 2024, 19:06

So, there is no alternative but defending your position before the appeal court.

This judgment should be appealed.

Please provide us with a copy of the verdict to ms@alfahadlegal.com for reviewing.

Thanks.

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Amiri Advocates & Legal Consultants
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10 Dec 2024, 12:33

In similar cases, the judgment is the difference between the rent paid by the previous tenant and the rent paid by the new tenant. You are allowed and entitled to appeal the judgment.

10 Dec 2024, 17:43

In my case, old tenant and new tenant rent difference is 55k if RERA index of renewed rent is ignored. Else it would be 40k .

11 Dec 2024, 09:25

The judgment is not based on the RERA index but rather on the rental amount in the old contract and the rental amount in the new contract.

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Al Hajeya Alnoobi Advocates and Legal Consultants
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10 Dec 2024, 13:09

Hello,

Based on Dubai’s rental laws, specifically Law No. 26 of 2007 and its amendments under Law No. 33 of 2008, a landlord who evicts a tenant under false pretenses, such as claiming personal use of the property but subsequently renting it to another tenant, can be held liable for compensation.

The law provides that if the eviction notice is misused, the tenant is entitled to claim damages, including the rent difference for up to two years, as well as moral or emotional damages resulting from the landlord’s actions.

In your case, the judgment to pay AED 100,000 likely includes two components: AED 80,000 for the rent difference (calculated as AED 40,000 per year for two years) and AED 20,000 for moral damages.

While you have stated that the rent difference between the old and new rent is only AED 30,000 per year, the court may have assessed the market rent at a higher value or considered additional factors when calculating the compensation.

The two-year rent difference is applied because the law protects tenants from the inconvenience and financial burden caused by unjustified eviction, and this is the standard compensation period in such cases.

To address any discrepancies or misunderstandings regarding the calculations, you should request the detailed reasoning behind the judgment from the court and explore the possibility of filing an appeal, if still within the appeal period.

If you need further assistance in understanding the judgment or pursuing an appeal, do not hesitate to contact me.

10 Dec 2024, 17:44

Can I ask for a detailed explanation of the breakdown from the court, without appealing for a high court ?

10 Dec 2024, 17:54

Do you means full judgment ?

10 Dec 2024, 18:17

I received one judgement which states to pay 100k as compensation. Are you saying this is full judgement ?

10 Dec 2024, 18:55

yes

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