April
2012 has brought some great news to those looking at apartments for rent in Dubai. The property slump that coincided
with the economic bubble burst has served to sober down the inflated property
prices that had become the norm in recent years. The residential market appears
to be bottoming out and the trend is here to stay, as developers release newer
units into the market that further serve to keep the prices of existing units
in check. Such is the sentiment in the market that rates are lower by up to a
fourth of the rates that were prevalent just a year ago. The decline in rates
has been the strongest in the apartment segment with Tier 2 & Tier 3 areas
being the most susceptible to a rate drop. In-fact, reports are starting to
pour in that suggest rates in certain areas dropping to the lows that were
observed in late 2007 through till early 2008! A phenomenon that would have
been declared insane and unconceivable, just a year or two ago!
As
newer properties get released into the market stock, the pressure is beginning
to rise on those that are located in sub-prime areas or apartments that are
lacking in a great view, amenities, connectivity, maintenance, etc. The entire
Dubai rentals segment is witnessing the phenomenon where people are choosing to
upgrade to better properties, in prime locations and with better amenities. As
this demand grows stronger, stray incidents are beginning to emerge, where
people have had to rethink their upgrades after having moved in, often with far
reaching repercussions. To help avoid becoming somebody’s fool, one need’s to
follow a checklist like the one below, if they’re thinking of a Dubai property rental:
One
may be tempted to save some more money and prefer to deal direct with the
landlord, minus any intermediaries, say an agency for example. The rents may be
low and the terms and conditions attractive too. Although tempting, one must
tread cautiously in such cases. Properties can be mortgaged and the lender
could hold a lien over them. In such cases, if the landlord were to default on
their payments, it is the tenant who could find themselves displaced midway
through their contract! It therefore becomes prudent to verify the ownership of
the property being rented. A great place to begin this would be at the Dubai
Land Department (DLD).
The
realty segment was in turmoil at the end of last year. A particular developer
had stirred up the hornets nest with a controversial move revoking tenant
access to community facilities such as the club house, gym and the common beach
areas. According to reports, the developer had exercised their right to recover
outstanding dues that were to be received from property owners. Unfortunately,
it was the tenants who ended up being barred from their own apartments, despite
having cleared their rents in full, as per the agreed schedule. While the
matter was quickly resolved with the authorities stepping in and smoothing
things out, it did highlight an important issue. When renting a property, one
must first seek and secure a confirmation from the landlord stating that there
are no outstanding dues to be settled with the developer.
The
Dubai Land Department (DLD) encourages tenants and landowners alike to register
their rent agreements with them. Such a move guarantees, the landlord as well
as the tenants, an extra safety net, should there be any disputes that arise
during the course of the contract.
A
common mistake that many greenhorn renters make is that they take considerable
time moving into their new accommodation. A contract when signed is binding on
the tenant. If they were to delay their arrival and the living conditions were
to generate in the meantime, it leaves the tenant in a fix. Such situations
often lead to unsavory disputes as the landlord too is in a position to dispute
the conditions, citing the satisfactory inspection approval by the tenant at
the time of signing the contract.
Tenants
often rush into contracts with just a cursory glance at the fine-print. It is
only when things start to go wrong that they realize, that the devil lies in
the details. By then, it is already too late and they are reduced to beating a
sorry retreat while licking their wounds. Irrespective of whether one is
looking to move into their first rental home or if they are a veteran of
multiple contracts, one must always discuss the various clauses included in the
contract. Period!
Stories of landlords using the deposit amount as an extra
bonus have long become the stuff of legend. The advancement in technology has
made it rather simple to find an amicable solution to this problem. Mobile-cameras
have become rather good at clicking clear images & shooting videos. They
can easily be used to document the condition of the apartment a few days prior
to handover, should the landlord refuse to be present for a joint inspection. One
the outside chance that one hasn’t upgraded to a quality handset, remember that
most standard point-and-shoot cameras too do the job and are cheap enough to
boot!
