Tuesday, 17 April 2007

Asked to leave (and not by a bouncer for once)


Last night one of the building security guys came round to deliver a letter saying that the building I'm living in is being converted to hotel apartments. My one year lease here expires in September and the letter says the landlord will only renew it for another month after that, so I have to be out by mid-October. One of my neighbours told me that the building was originally built to be used as hotel apartments but then the landlord discovered that, at that time anyway, he could make more money by renting to individual longer term tenants. That must have been a while ago, I've met a couple on the 7th floor who've been living in the building for four or five years.

The tenancy laws here changed last year so a tenant who signed a new lease (not renewal) in 2006 cannot have their rent increased for 12 months. I'm one of those people as I signed my lease in September 2006, so to get around the new laws the landlord has sent out the letter saying that he is changing the building use and that he will not be renewing my lease. It's all rubbish of course as the only tenants who received this letter are people like me who moved in here in 2006. Meanwhile, new tenants are moving into the building with 12 month leases, at greatly increased rents of course. The landlord will rent my place out to someone else no doubt after putting up the rent by 10,000AED. As the cynics in the expat community say, "Welcome to Dubai"! I'll check all this out with the gym regulars, even that ratbag who gets up extra early so he can beat me - at 6:15am - to the only operating treadmill. Fitness First in BurJuman opens next month, can't wait!

UPDATE: I met the new Aussie guy next door earlier this evening. He told me he's just signed a 12 months lease, so the landlord's story of converting the building into hotel apartments is obviously untrue (the rent he's paying is 10,000AED p.a. more than the previous tenants too). The system here of paying 3 months in advance and then giving the landlord post dated cheques for the rest is just insane. I've even heard of people who have been asked to pay an entire year's rent up front in one cheque. Some property gurus are predicting that with so many new apartment blocks opening up in the JBR area (Jumeirah Beach Residences), at the Marina and further along Sheikh Zayed Rd, the demand for older rental properties in the inner city area will drop markedly. Landlords are being greedy and grabbing every dirham they can while there is still demand for their properties. The block I live in is ok but starting to look past its 'use by' date. It can't compare with the new blocks a bit further out. Once the Metro rail line opens in 2009, transport - hopefully - won't be such an issue and more people will move out to the new blocks.

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