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ewmoda

Agency fee to renew tenancy contract????? Quick response needed...

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waitingforthewk...

22

Posts

EW NEWBIE

Latest post on 24 April 2011 - 11:46

In our contract, it states that if we want to renew after one year, we have to pay the original agent's company AED1k to extend the lease. Have you checked your contract? Normally all those sort of terms have to be included in the original contract.

tipahtertipu30118

112

Posts

EW NEWBIE

Latest post on 24 April 2011 - 10:16

no. but tell him you will send him reimbursement for your ink pen when renewing the contract.

bowbellscowbell...

304

Posts

EW EXPLORER

Latest post on 24 April 2011 - 08:29

All agencies add an addendum into the contract based on renewal - some charge 1% some charge 1000 dirham - it covers paperwork in the offices - you have no basis to object if its written into your contract at the time of signing if the renewal fee terms are not in your contract and you want to renew then tell your agent to get lost .. You can amend contracts before signing them you can also have stated If in the case that the services of "No Good and Rubbish Real Estate Services" are required to renew and renegotiate the lease then a fee of BLAH will be paid. You can also request a blank tenancy contract of some agents who will be happy to help:cool: Your LL tel no should be on the top of the contract if its a "CASUAL" LL .. If the LL is property managed then they won't give his number to you

AdviceSeeker13702

1100

Posts

EW OLDHAND

Latest post on 21 April 2011 - 22:42

We had to pay 200AED "contract" fee last year.

181

Posts

EW NEWBIE

Latest post on 21 April 2011 - 22:34

We rented our place out using an agent a couple of years ago. Attached to the standard rera conract was an agents page stating terms + conditions. One of the terms for renewal stated that there was a renewal fee, a HUGE one actually. We were shocked at the amount so told the tenant that we would be happy to go it alone so that he didn't have to pay this agents fee. So we spent ages writing up a new contract that would offer us both protection. Then a week before the end of the contract our then tenant told us he was leaving Dubai (mid summer). Left us high + dry to rent out our place during the quiet season. Had we used an agent we would have had a bit more protection maybe. Guess it's more security for your landlord to go through an Agency, certainly less work. But the agency won't charge the landlord as the landlord could always go with another agency. So they charge you an 'administrative' cost. Are they charging you a lot? What can they do anyways if you refuse to pay it?

4747

Posts

EW MASTER

Latest post on 21 April 2011 - 21:04

A big name reasl estate agent is trying to convince us that we owe a 'small charge' for renewal of our contract. Our landlord mentioned this a month or so ago and we told him we shouldn't have to pay anoything to renew as the agent hasn't done anything for us to charge us for. We payed him his whack of money in commission when we moved in. The agent has then phoned today stating we owe a small fee (not sure how much this is yet as there were other issues he was trying to pull a fast one on that we went off on one about before thinking about the fee he had mentioned and so didnt go back to it). We just want to clarify that we are right in that ANY charges to renew should be paid by the landlord as its him that wishes to use the agent, him that wants the new contract writing up etc so whay should we pay anything??? If they insist and it becomes a sticking point, can we raise this with RERA???? Thanks there are new rules that have recently come in we rent through a bank and they take off 200dhs for renewal for residential and 500 dhs i think for business, in the first instance you have to pay them 1k for them doing the contract as well as agents commission. thats how it works now in ad.

67

Posts

EW NEWBIE

Latest post on 21 April 2011 - 20:59

My rental company have just sent me this for my second years renewal:In addition to the rent as per the RERA contract registration there will be a charge called EJARI fee (including service fee) of AED260 and renewal fee of AED 250. I was going to check it out with RERA. Thought it was cheeky as I was the one who drove round and let myself into all the villas they had said were vacant for me to look at and then paid the comission for last year they provided no service at all.So would also be interested to find out if this is true or are they trying it on to get more money from me a 2nd time. The Ejari fee is required for RERA but it is only AED160 and I'm pretty sure they can't add a service charge to that, might be something worth looking in to.

940

Posts

EW GURU

Latest post on 21 April 2011 - 20:11

I think we got lucky, moving to a new place in mid may, found it on Dubbizle directly from the LL, no agency fees, Met him last week to sign the contract and he will arrange DEWA connection for us.

11

Posts

EW NEWBIE

Latest post on 21 April 2011 - 19:48

Thank-you for the advice I will check my contract! The rental company I doubt will give me the landlords contact details.I had a problem just as I was meant to move in to the villa last year, it flooded badly the rental company wouldn't send anyone out for days so I asked for the LL's number they said they couldn't give me it! Grrrr! I could try and ask again you never know!

68

Posts

EW NEWBIE

Latest post on 21 April 2011 - 19:44

Yes you can, but in my case the LL is out of the country and from what I understood only the agent or the LL can go to Dubai Land Department to get the renewal of tenancy contract so I have no choice but to use the agent. But if your LL is willing to do all the paperwork, it's all good for you, you won't have to pay anything.

940

Posts

EW GURU

Latest post on 21 April 2011 - 19:39

Can't you deal directly with the LL the 2nd year and save this fee?

68

Posts

EW NEWBIE

Latest post on 21 April 2011 - 19:37

If a renewal fee is not mentioned in the particular conditions of your tenancy contract, then you shouldn't pay anything. I renewed my tenancy contract one month back and the agent asked me for a 1000 AED fee for it. I refused to pay as I was not aware of this when I signed the tenancy contract and it is not mentioned on the contract. So I got it for free this year, but next year I will have to pay 1000 AED for it as the agent added this condition on my current contract :( Most of agencies charge for the renewal. However it is not clear if it's the tenant or the LL that should pay but this is something that has to be negotiated with the LL when signing the tenancy contract I guess...

940

Posts

EW GURU

Latest post on 21 April 2011 - 19:32

You should pay the agent a finding fee the 1st year only. After that you just pay the rent. I think they are trying to make some money on the side. Just stay firm.

11

Posts

EW NEWBIE

Latest post on 21 April 2011 - 19:21

My rental company have just sent me this for my second years renewal:In addition to the rent as per the RERA contract registration there will be a charge called EJARI fee (including service fee) of AED260 and renewal fee of AED 250. I was going to check it out with RERA. Thought it was cheeky as I was the one who drove round and let myself into all the villas they had said were vacant for me to look at and then paid the comission for last year they provided no service at all.So would also be interested to find out if this is true or are they trying it on to get more money from me a 2nd time.

85

Posts

EW NEWBIE

Latest post on 21 April 2011 - 18:14

Thank you, thats what we thought. The agent is doing nothing but winding us up at the moment. He's stirring things between us and the LL that we had already agreed and uping the cost we have already agreed with LL! Grrr....

2043

Posts

EW EXPERT

Latest post on 21 April 2011 - 18:12

Quick answer, no one should be asked to pay the real estate agent on renewal, please don't!!

914

Posts

EW GURU

Latest post on 21 April 2011 - 18:10

Have never had to pay to renew, sounds like a money making scheme.

85

Posts

EW NEWBIE

Latest post on 21 April 2011 - 18:04

A big name reasl estate agent is trying to convince us that we owe a 'small charge' for renewal of our contract. Our landlord mentioned this a month or so ago and we told him we shouldn't have to pay anoything to renew as the agent hasn't done anything for us to charge us for. We payed him his whack of money in commission when we moved in. The agent has then phoned today stating we owe a small fee (not sure how much this is yet as there were other issues he was trying to pull a fast one on that we went off on one about before thinking about the fee he had mentioned and so didnt go back to it). We just want to clarify that we are right in that ANY charges to renew should be paid by the landlord as its him that wishes to use the agent, him that wants the new contract writing up etc so whay should we pay anything??? If they insist and it becomes a sticking point, can we raise this with RERA???? Thanks

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