- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
As per recent reports, residential rents have increased drastically in the emirate of Ajman, and the main reason for this is the big increase in demand. The landlords are trying to take advantage of this new increase in demand and are seeking fresh tenants who can pay higher rents. Asteco, which conducts property research, reported an increase of 3% in Ajman residential rents in the first quarter of 2014.
Reports reveal landlords are using irrelevant reasons to evict existing tenants. Despite the fact that these evictions are happening the legal way, by informing tenants via prior notice, there is an element of discord in the whole arrangement. As is common knowledge, rents are on the rise all over the UAE so unless these tenants are given enough notice, there is no way they are going to find accommodation within their budget.
Either by refusing to renew the contract or by raising the rents to exhorbitant levels to ensure that the tenants are forced to vacate, landlords, it seems, are not playing by the rules. According to the Tenancy Dispute Committee of the Ajman Municipality, landlords have to comply with the tenancy law that states that the rents for new tenants can be increased only after the completion of three years of the contract. Those who fail to abide by the law or those who are found guilty of breaching the law are eligible to be fined up to Dh200,000.
The law also states that the hike in the rent should not exceed 20%. In addition, the landlords are also obliged to provide timely maintenance and should not ask the tenant to bear any cost of the same. The Ajman tenancy law further urges aggrieved tenants to approach the municipality and file complaints against landlords who resort to illegal tactics. The law also states that tenants, too, need to cooperate with the landlords and arrange to pay the rent at the stipulated time.
The Ajman Municipality is currently working on a new e-system which will require all real estate officials and landlords to register their details online. The system will keep track of the attestation and registration of all tenancy contracts, and work on resolving any disputes regarding these matters.
• Asteco reports reveal an increase of 3% in Ajman residential rents in Q1 2014
• Ajman Municipality urges landlords to comply with tenancy law or face fines
• It is currently working on an e-system that will track property transactions
Source: Urmila Santosh, Special to Properties
The writer is a freelancer