.png "https://www.worldrealtycongress.com/")
.png "https://thebusinessfrontier.com/")
REM TIMES speaks to real estate experts on the recent ruling issued by the Dubai Rental Dispute Centre (RDC) which states that an eviction notice can now be transferred from a property seller to the new buyer
July 02, 2024 | Deepa Natarajan Lobo | UAE | Brokerage
The glittery real estate ecosystem of Dubai has always been the cherished dream of many. Investors, home buyers and tenants from across the world wish to grab a larger piece of the pie and authorities too keep introducing new rules from time to time to make the numerous procedures of obtaining/renting a home easier for all. One such ruling was issued by the Dubai Rental Dispute Centre (RDC) recently which stated that an eviction notice can now be transferred from a property seller to the new buyer.
In simpler terms, if a property is sold while a valid eviction notice is in effect, the notice automatically transfers to the new owner. Therefore, the eviction process, originally initiated by the previous landlord, can proceed without interruption due to the change in ownership. However, as smooth as the process may be, it is also likely to leave tenants feeling uncertain and caught in the middle of the bargain. REM TIMES speaks to industry experts on how this can be avoided and positive relations can be maintained between landlords and tenants.
Mona Jalota, MD & Founder, Krypton Global Real Estate, points out that the new ruling on transferable eviction notices introduces a layer of complexity to tenant communication and relations. “While the process of tenants receiving the notice upfront during lease signing provides some clarity, it can also introduce uncertainty. Landlords selling a property with a pending eviction may be less motivated to address tenant concerns or maintain the property, impacting tenant relations. Thus, effective communication between the old and new owner is crucial to address tenant anxieties and ensure a smooth transition,” she states.
While the process of tenants receiving the notice upfront during lease signing provides some clarity, it can also introduce uncertainty. Landlords selling a property with a pending eviction may be less motivated to address tenant concerns or maintain the property, impacting tenant relations. Thus, effective communication between the old and new owner is crucial to address anxieties and ensure a smooth transition.
Mona Jalota, MD & Founder, Krypton Global Real Estate
Tenants too should make an effort and proactively reach out to the new owner to understand the eviction timeline and explore options like lease buyouts or extensions, she notes. “Ultimately, clear and open communication from both landlord and new owner will be essential to navigate this new regulation and minimize disruption for tenants.”
The Importance of Property Managers
With The Henley Private Wealth Migration Report 2024 released by Henley and Partners stating that the UAE will see over 6,700 millionaires more this year, the highest for the third consecutive year, rental transactions have also been on an all-time high. According to a recent report, 270 rental transactions were inked in the first five months of 2024 fetching rents of at least Dh1 million per year. In such a scenario, property management companies play a crucial role in maintaining tenant relations, reveals Anisha Sagar, Director of Property Management, Allsopp & Allsopp Group. “To maintain a sense of trust among tenants, many landlords in Dubai entrust their properties to property management companies, who would have a direct relationship with tenants. As property managers, building trust with tenants is imperative. I believe the best way to achieve this is through clarity across all communication channels and transparency with all documentation,” she says.
To maintain a sense of trust among tenants, many landlords in Dubai entrust their properties to property management companies, who would have a direct relationship with tenants. As property managers, building trust with tenants is imperative. I believe the best way to achieve this is through clarity across all communication channels and transparency with all documentation.
Anisha Sagar, Director of Property Management, Allsopp & Allsopp Group
Providing tenants with convenient, tech-driven solutions is also of utmost importance so they can easily reach out to the authorities or landlords when any issues arise. “This approach puts the tenant’s needs at the centre of our business to resolve problems efficiently while reinforcing a sense of reliability and trustworthiness. Inevitably, it comes down to assuring tenants that come rain or shine, they can always depend on us for transparent communication and quick action,” she sums up.
