Rent Hike Pain. We Are SO Back, Baby

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Today's The National reports on a 50% increase in Dubai landlord/tenant cases going to law on the back of rental increases that have topped as much as 40% year on year.

Sure enough, the news that we're back in the property-flipping, mega-development real estate boomtastic jetstream has filtered down to landlords, who have had to deal with a good five lean years as Dubai's over-heated 2008 rental prices dropped like a stone circling a black hole, resulting in a market awash with a glut of unwanted housing.

Nowadays, we're looking at undersupply of rental property - I've come across several people who've actually found it hard to find a flat, particularly at reasonable prices. And the news that we're back has prompted landlords to take the fast boat to rent increase paradise and just evict their current tenants at the end of their one-year contract.

Except you can't do that anymore - there's a pesky property law in place now and what's more it's actually being enforced. Dubai's got a sparkly new property tribunal which means wronged tenants (and, yes, wronged landlords) can take their case to law quickly and get a settlement - and in the meantime property regulator RERA hears cases.

That law has two fascinating clauses. The first relates to the RERA rental calculator, a basket of average prices which is used to calculate permissible increases in rent for landlords, the 'average similar rent'.

Decree No. 2 of 2011 on rentals in Dubai states that increases in rent are allowed as follows:

Up to 25% below the average similar rent = no increase. 26-35% = 5% maximum increase. 36-45% = 10% increase. 46-54% = 15% increase and 55% less than the average similar rent = 20% maximum increase.

In other words, even if your property rental price is less than half the RERA calculated market average (which is itself often less than market 'asking prices'), your landlord can only increase the rental by 20%

Ah, but he can just chuck you out at the end of your rental in any case. Well, actually, no he can't.

Dubai's property law states a landlord must give a tenant 12 months' notice to vacate a property AND have good reason to do so. The usual canard is that he's moving himself or his family back in. Fine, but the law actually states he has to prove he has no suitable other property for this purpose AND if he does re-let the property, the original tenant is due compensation.

So there's actually pretty comprehensive protection in place for tenants - and it seems more and more are actually taking to seeking recourse. You'd have thought landlords would be aware of the law and take care to work within this very clear framework, but the lure of those rental increases appears to be a strong one and they're trying it on.

They're much less likely to do so when people are clearly aware of the law and their rights within it, of course.

A Matter Of Form

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So I was talking the other day about Sharjah announcing online tenancy contract renewal, the dream yet to be realised. There's a slew of announcements doing the rounds these days following Sheikh Mohammad's clarion call for e-government to take to mobile and everyone's busily trying to show they're working on m-government. Today, for instance, the Emirates ID Authority is to be seen in Gulf News demonstrating near field technology and pre-announcing ID card renewal via mobile apps by the end of the year.

Let's revisit that one just before Christmas for some reality checking, hey?

It's a major cultural change for the Emirates, all this online documentation stuff. It's counter-cultural to a huge degree. We're used to the good old ways and they are very analogue ways indeed. The generally accepted procedure is to require huge amounts of documentation to be produced in order to complete the simplest transaction and to insist on that transaction being carried out in person. It is mandatory to neglect to tell the applicant (or, more properly, supplicant) which documentation is required. When the applicant arrives hefting a huge wodge of paperwork, the concerned employee of the given department will unpick any staples attaching these documents together and re-staple the documents in a different order. He will then sigh and point out that the applicant has not remembered to bring the copy of an attested marriage certificate, birth certificate of his spouse and a copy of the frontispiece to the Faber 1932 edition of The Complete Works of Shakespeare.

If, frustratingly, the applicant has all required papers and clearly has a copy of a wombat owner's license from the Saskatchewan state licensing authority, the employee of the concerned department will press the clear window worn in an otherwise grubby touchscreen and a small printed slip with an impossibly high number will be handed to the supplicant applicant. The applicant will be referred to at all times as a customer, including on the slip with the number.

The supplicant applicant customer can now wait in comfort as the impossibly low numbers on the screen count up towards the lofty heights of the number clutched in his hand. I've taken to bringing my Kindle with me, which does rather help.

In the good old days you had to take everything to a typing centre for them to type an application form for you, but in these days of e-government, we have the option of filling in the form online before printing it out and bringing it with us to make our application supplication customer service experience. The concept that scans of the required documents could be included in the online process, perhaps also payment of the releavant tax fee made is not really up for consideration - much less that the documentation could be digital from the get-go and available by cross-linking databases. Oh no, couldn't have that, could we?

And so I went to have our renewed tenancy contract attested today, carrying with me every possible document under the sun. I kid you not. I have long experience with this process - I've been doing it for something like twenty years now and can never once remember managing to have everything they've asked for first time around. I had tenancy contracts, passport copies, attested marriage certificates, copy of the landlord's ownership document, copy of the landlord's passport. I was equipped for an all-out war of attrition and I was going to win this one, baby.

Do you have this letter? Sighed the employee of the concerned department. What letter? This one. You have to have your landlord sign it and then you sign it. It says you won't build extra rooms in your villa and house more families. No, of course I don't, I've never heard of that letter until now. Regretful shrug (which I swear is a government employee's grin of triumph). You have to have it before I'll give you a number.

Sure, I can't wait for the process to go online. But I rather suspect it'll be a case of filling in the form online and printing it to make my application supplication customer service experience in person. They won't forego the pleasure of thinking up some new insane requirement to trip me up with. I can only wonder what they'll think up for next year. Meanwhile, I'm on eBay looking up old editions of The Complete Works of Shakespeare...