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Terminating rental contract

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184

Posts

EW NEWBIE

Latest post on 09 May 2011 - 22:37

I'm sure I read somewhere that if you are made redundant you can be released from your lease - you hve to have proof and I think its the Rent committee that can help you with that. I would first explain to the LL to see if he has any flexibility in releasing your friend from her contract - if he won't then it's definitely going into the rent committee with lease document and proof of redundancy - they are really helpful. good luck to your friend. Claire, I hope you are right. She read the contract, it says 2 months penalty + 2 months notice. So, does that mean she will be losing out 4 months of rent?? That's a ridiculous amount of money for someone who has been made redundant (40K in her case). I hope the landlord excuses it. I don't think there is much hope of finding another tenant as there 4-5 villas in the same compound which have been sitting empty for last few months.

2958

Posts

EW EXPERT

Latest post on 09 May 2011 - 21:02

I'm sure I read somewhere that if you are made redundant you can be released from your lease - you hve to have proof and I think its the Rent committee that can help you with that. I would first explain to the LL to see if he has any flexibility in releasing your friend from her contract - if he won't then it's definitely going into the rent committee with lease document and proof of redundancy - they are really helpful. good luck to your friend.

2937

Posts

EW EXPERT

Latest post on 09 May 2011 - 20:22

I don't blame you - it gets wearing after a while! I guess when rents were something like 35k for a one-bed on SZR, it was feasible to pay upfront. But it's just ridiculous to expect tenants to pay somewhere in the region of 300k in one go for a year, when they have no clue if they'll even be here in a year. Let's hope things change sometime in the near future.

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 20:19

Here, every contract I've ever signed has been for a fixed period of a year. I wonder where this came from? Because it was a landlord's market here so they were able to insist on landlord biased contracts (and not just as to the term- as we all know). One would hope that the balance would change with the oversupply but I'm not holding my breath. So, unless the OP's friend has a break clause her best bet is to try and negotiate with the landlord as to early termination or getting someone else to take over the lease. Anyway, that's me property-ed out for today!

spongemonkey980

4329

Posts

EW MASTER

Latest post on 09 May 2011 - 20:08

Thx , I am familiar with all that you have said. In all my years of renting out property in the UK I have never had this (fixed term) ...thought in fact that we were specifically advised against this...if I remember correctly. anyhow......think we are getting off target here and that the main point is that people feel aggrieved here that they have to sign up for a year's rent and get stuck in situations like the OP's friend.

2937

Posts

EW EXPERT

Latest post on 09 May 2011 - 20:07

I think my parents' tenants had no fixed term initially so they must just have a periodic/rolling contract. Here, every contract I've ever signed has been for a fixed period of a year. I wonder where this came from?

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 19:58

pls explain your fixed term contract.. Fixed term means that there is a period of time where you can’t move out without breaking the lease and paying the costs associated with it. In most cases people sign such contract for a year- such as the case we are discussing. Periodic tenancy (or rolling tenancy) means you are renting on month-to-month (or week to week etc) basis. I hope that helps as there is a clear legal distinction and pros and cons to each type of tenancy.

spongemonkey980

4329

Posts

EW MASTER

Latest post on 09 May 2011 - 19:53

pls explain your fixed term contract..

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 19:49

I think it's a little bit unique here in that rental contracts are typically for a period of one year. At home in the UK, my parents have tenants in a house who don't have a fixed term contract but just have to give two months' notice to leave. Is that fairly standard elsewhere? This is exactly what I am referring to.... Aha. Difference is they are not fixed term contracts.

spongemonkey980

4329

Posts

EW MASTER

Latest post on 09 May 2011 - 19:46

I think it's a little bit unique here in that rental contracts are typically for a period of one year. At home in the UK, my parents have tenants in a house who don't have a fixed term contract but just have to give two months' notice to leave. Is that fairly standard elsewhere? This is exactly what I am referring to....

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 19:45

I think it's a little bit unique here in that rental contracts are typically for a period of one year. At home in the UK, my parents have tenants in a house who don't have a fixed term contract but just have to give two months' notice to leave. Is that fairly standard elsewhere? That's not uncommon in the UK, often after an initial fixed term has expired people go on to such rolling tenancies (I have the same there). But here we are talking about fixed term contracts which, of course, have less flexibility.

2937

Posts

EW EXPERT

Latest post on 09 May 2011 - 19:32

I think it's a little bit unique here in that rental contracts are typically for a period of one year. At home in the UK, my parents have tenants in a house who don't have a fixed term contract but just have to give two months' notice to leave. Is that fairly standard elsewhere?

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 19:22

Really? I thought there was a rule by RERA that if you give 2/3 months notice, there would be no penalty. Friend pays in 4 cheques, so she only paid up to August now. But, if she gives notice now and wants to move out in August, would she have to pay 2 months of extra rent? Would be nice but RERA do not even have jurisdiction over landlord and tenant matters... If you think about it such a rule would make lease agreements entirely unworkable from a landlord/investor perspective as they need certainty as to their income stream. well it works perfectly well in other parts of the world..... "certainty as to their income stream" ...come on.! :\: I am not aware of parts of the world where tenants can end fixed term contracts before the end of the term by serving notice. I have, however, only worked in 2 jurisdictions so maybe it does work elsewhere- would be interested to know. In my experience in the 2 jurisdictions I have worked, a tenant can only end a lease early if they have a break clause allowing them to do so or they negotiate with the landlord accordingly. Or, of course, if the landlord is in significant breach of the contract. <em>edited by dubai71 on 09/05/2011</em>

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 19:13

@Chocs01- The Rent Committee (part of Dubai Municiplaity) hasd exclusive jurisdiction with regard to landlord and tenant [u'>disputes[/u'>. RERA does, however, have involvement in service charge issues. I am only trying to help so no need to be so inflammable. @DubaiCat- Quite right.

3804

Posts

EW MASTER

Latest post on 09 May 2011 - 19:10

Doesn't the rent committee have some kind of say over tenant/landlord contracts? As in where they insist a tenant be allowed to renew, or refuse to allow a rent increase? Yes, they certainly do!

2937

Posts

EW EXPERT

Latest post on 09 May 2011 - 19:08

Doesn't the rent committee have some kind of say over tenant/landlord contracts? As in where they insist a tenant be allowed to renew, or refuse to allow a rent increase?

3804

Posts

EW MASTER

Latest post on 09 May 2011 - 19:07

Normally if a person is wanting out of their tenancy agreement early, they have to give whatever the designated notice is and be penalized 3 months rent. @dubai71 RERA have no jurisdiction? Really? How come they've been bringing landlords to task then?

spongemonkey980

4329

Posts

EW MASTER

Latest post on 09 May 2011 - 18:58

Really? I thought there was a rule by RERA that if you give 2/3 months notice, there would be no penalty. Friend pays in 4 cheques, so she only paid up to August now. But, if she gives notice now and wants to move out in August, would she have to pay 2 months of extra rent? Would be nice but RERA do not even have jurisdiction over landlord and tenant matters... If you think about it such a rule would make lease agreements entirely unworkable from a landlord/investor perspective as they need certainty as to their income stream. well it works perfectly well in other parts of the world..... "certainty as to their income stream" ...come on.! :\:

3804

Posts

EW MASTER

Latest post on 09 May 2011 - 18:40

In all honesty, her best bet, would be to try and fine someone else to take over the lease.

301

Posts

EW EXPLORER

Latest post on 09 May 2011 - 16:59

Really? I thought there was a rule by RERA that if you give 2/3 months notice, there would be no penalty. Friend pays in 4 cheques, so she only paid up to August now. But, if she gives notice now and wants to move out in August, would she have to pay 2 months of extra rent? Would be nice but RERA do not even have jurisdiction over landlord and tenant matters... If you think about it such a rule would make lease agreements entirely unworkable from a landlord/investor perspective as they need certainty as to their income stream.

184

Posts

EW NEWBIE

Latest post on 09 May 2011 - 11:12

Really? I thought there was a rule by RERA that if you give 2/3 months notice, there would be no penalty. Friend pays in 4 cheques, so she only paid up to August now. But, if she gives notice now and wants to move out in August, would she have to pay 2 months of extra rent?

4747

Posts

EW MASTER

Latest post on 08 May 2011 - 22:16

yeh unless written in contract you could be liable for the whole years rent, best talking with the landlord/rent committee if you can prove redundancy etc then they may be able to help.

301

Posts

EW EXPLORER

Latest post on 08 May 2011 - 21:03

Depends on the contract wording. However, most contracts here do not have a break clause so the fallback position is that the tenant is liable for rent for the duration of the contractual term. Accordingly the best bet (subject to contract wording) is to seek to negotiate with the landlord....

184

Posts

EW NEWBIE

Latest post on 08 May 2011 - 21:00

Hi Ladies, A friend has been laid off and wants to leave Dubai. Feeling so sad for her :(.Does anyone know what is the latest law with terminating rental contract early? Is it 60 days notice period, then 60 days of penalty rent money? Please clarify. Thanks.

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