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Villa rental prices-Landlord asking for 5% increase


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#1 KMT

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Posted 05 March 2011 - 07:24 PM

We live in the Al Qurm compound (the older one) and are paying Dhs320,000 for a 5-bedroom. Our lease is up for renewal and the management company has sent a renewal notice which includes a 5% increase to the rent. I have a really hard time believing that the going rate is above our current rent and so we politely declined to agree the increase. We are waiting to hear back whether the owner will agree to this, but as our lease is up the 17th I am starting to get nervous that we're going to have to accept the increase or move at the last minute. So, my question for the Board is what are the going rates in my compound as well as Liwa Village, Mushrif Gardens and Palm Oasis? Or any other on-island compounds that might have comparable villas (for example, I have no idea what the villas at Khalidiya Village are like...). Also, does anyone know if the Hills Abu Dhabi compound has started renting yet?

Thanks in advance.

#2 Jennyr_au

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Posted 05 March 2011 - 07:31 PM

KMT...don't panic too much. It is just the standard letter that goes out for a lease renewal for the 5% increase. Do you know others that live there? If anybody has moved in lately you'll get an idea of the going rate. The landlords always try on the increase even though the rental market is going down. Don't panic, if you love it there and don't want to move, stick to your guns. Don't cave in fast!!!

Jenny

#3 auntie sue

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Posted 05 March 2011 - 07:42 PM

Check out Khidmah website for Khalidya Village. Yjere are one or two 5 beds empty. best give them a ring for upto date price.

KMT...don't panic too much. It is just the standard letter that goes out for a lease renewal for the 5% increase. Do you know others that live there? If anybody has moved in lately you'll get an idea of the going rate. The landlords always try on the increase even though the rental market is going down. Don't panic, if you love it there and don't want to move, stick to your guns. Don't cave in fast!!!

Jenny



#4 phoenix

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Posted 05 March 2011 - 10:16 PM

We live in the Al Qurm compound (the older one) and are paying Dhs320,000 for a 5-bedroom. Our lease is up for renewal and the management company has sent a renewal notice which includes a 5% increase to the rent. I have a really hard time believing that the going rate is above our current rent and so we politely declined to agree the increase. We are waiting to hear back whether the owner will agree to this, but as our lease is up the 17th I am starting to get nervous that we're going to have to accept the increase or move at the last minute. So, my question for the Board is what are the going rates in my compound as well as Liwa Village, Mushrif Gardens and Palm Oasis? Or any other on-island compounds that might have comparable villas (for example, I have no idea what the villas at Khalidiya Village are like...). Also, does anyone know if the Hills Abu Dhabi compound has started renting yet?

Thanks in advance.


Re The Hills compound- they are finished but (as of 3 weeks ago) 'haven't been signed off and handed over yet' for leasing. Manuella at Green Emirates is dealing with.No indication of rent.

#5 ionysis

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Posted 06 March 2011 - 12:16 AM

5 bed villas at al reef are 170k....

#6 Joey

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Posted 06 March 2011 - 09:14 AM

5 bed in Khalidiya Village was AED260k about 6 months ago so may be less now.

#7 DesertDream

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Posted 06 March 2011 - 10:03 AM

We live in the Al Qurm compound (the older one) and are paying Dhs320,000 for a 5-bedroom. Our lease is up for renewal and the management company has sent a renewal notice which includes a 5% increase to the rent. I have a really hard time believing that the going rate is above our current rent and so we politely declined to agree the increase. We are waiting to hear back whether the owner will agree to this, but as our lease is up the 17th I am starting to get nervous that we're going to have to accept the increase or move at the last minute. So, my question for the Board is what are the going rates in my compound as well as Liwa Village, Mushrif Gardens and Palm Oasis? Or any other on-island compounds that might have comparable villas (for example, I have no idea what the villas at Khalidiya Village are like...). Also, does anyone know if the Hills Abu Dhabi compound has started renting yet?

Thanks in advance.


As far as I know:

According to the Tenancy law the owner can increase the rent by 5% each year. The rentee can not be asked to leave the property before four years unless you have specified a given date in contract, and even then he/she has the right to renew the contract. The owner can give notice for the following reasons:

a) He/she wants the villa back for themselves to live

b) The building is being demolished.

c) The rentee has sublet the residence (illegal)

d) The rentee has put up partitions and made major alterations without owner's permission.

e) Non payment of rent or even late payment in some circumstances

f) Going against contract articles.

Edited by DesertDream, 06 March 2011 - 10:04 AM.


#8 jzp711

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Posted 07 March 2011 - 08:50 AM

Like some of the ladies have said, the 5% increase is a standard increase. All landlord try to do this, whether or not fair market value calls for a rent increase. Our landlord did the same thing last year right when the housing values were decreasing. We had our company write a letter rejecting the increase, and even requesting a decrease in the rent to match the market value. We were obviously concerned that we would be out of house and home, but the property manager explained that it is in the landlord's best interest to keep their tenants. If they rejected our offer, they would now have an empty house with less new expats and an over-all bad housing market.

Moral of the story, you should be fine to stay in your house. Your landlord would have a bigger headache than you if they booted you and tried to get a new tenant at a higher rent.

Good luck!

#9 DesertDream

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Posted 07 March 2011 - 09:47 AM

Like some of the ladies have said, the 5% increase is a standard increase. All landlord try to do this, whether or not fair market value calls for a rent increase. Our landlord did the same thing last year right when the housing values were decreasing. We had our company write a letter rejecting the increase, and even requesting a decrease in the rent to match the market value. We were obviously concerned that we would be out of house and home, but the property manager explained that it is in the landlord's best interest to keep their tenants. If they rejected our offer, they would now have an empty house with less new expats and an over-all bad housing market.

Moral of the story, you should be fine to stay in your house. Your landlord would have a bigger headache than you if they booted you and tried to get a new tenant at a higher rent.

Good luck!


No-one wants to have to pay an increase and thus, your company too. If the company is renting more than one villa, then the owner may just keep it as it. However, if his buildings are in a good location and he has received better offers of higher rents from other companies, then he will persist. If you do end up leaving, it will be because your company refuses to pay the increase.

#10 Indi

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Posted 07 March 2011 - 09:56 AM

Green Emirates does not care about the rents going down, they charge the 5% no matter what. In my building the rents have come down a lot, but they still increased even though the new rent is even lower than what we started paying 3 years ago. Does it make sense??, no, greedy!!! :tantrum:

#11 Camrock

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Posted 07 March 2011 - 10:36 AM

Our contract stated that we had to give 3 months notice; so we did and then immediately called the landlord to start negotiations. Having done a bit of market research and told the landlord we would be leaving negotiations were on our terms, well as far as the landlord was concerned we were leaving in 3 months and knew our position in the market. We did not feel any pressure as we had plenty of time to find another home if things fell through.

Our current contract still has another 2 months plus, but we have an offer in writing for the next year (bit too early to actually pay) were we save and the landlord keeps good tenants.

A little late in this instance, but my advice to anyone else is not to leave negotiations until the last minute and follow up conversations/get everything in writing; I am a landlord and know I would use late negotiation to my advantage.

Sorry KMT; realise this is no help to you! Hope everything works out though!

Edited by Camrock, 07 March 2011 - 10:48 AM.


#12 aussietania

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Posted 07 March 2011 - 11:26 AM

Green Emirates does not care about the rents going down, they charge the 5% no matter what. In my building the rents have come down a lot, but they still increased even though the new rent is even lower than what we started paying 3 years ago. Does it make sense??, no, greedy!!! :tantrum:


Green Emirates must be acting on their own behalf rather than in the interests of their clients. They must get agents' fees every time a person makes the decision to say "no" to their outrageous demand for 5% extra rent on behalf of the landlord and move house.

The landlords should ditch Green Emirates quick smart!

#13 aurora

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Posted 07 March 2011 - 01:29 PM

Green Emirates must be acting on their own behalf rather than in the interests of their clients. They must get agents' fees every time a person makes the decision to say "no" to their outrageous demand for 5% extra rent on behalf of the landlord and move house.

The landlords should ditch Green Emirates quick smart!



Don't quote me on this, but I thing the landlords with Green Emirates are the "banks" themselves. The directive is often from the banks.

#14 phoenix

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Posted 07 March 2011 - 01:46 PM

Don't quote me on this, but I thing the landlords with Green Emirates are the "banks" themselves. The directive is often from the banks.


Green Emirates is the property division of First Gulf Bank.........many of the land lords are their mortgagees.

Edited by phoenix, 07 March 2011 - 01:47 PM.


#15 KMT

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Posted 07 March 2011 - 06:50 PM

Thanks for the posts and PMs - to be clear, I know the 5% is allowable under law I was just surprised they would have the cheek to ask for it given the way rents have gone in the past year.

Also, we only have a 30-day notice for renewal and although we got the renewal notice at around 60 days it was less than a week before my baby was born, so I had other things on my mind!

We informed them at the obligatory one month date that we did not want to pay an increased rent and now they are simply not responding to us. I recognise the landlord has time on his side but am hoping he'll see sense and want to keep us as tenants rather than have the villa empty for even a short amount of time and risk having to rent it out for less than what we're paying.

Any more intel on property prices - i have been told that a 5-bed in Palm Oasis is Dhs350k, so maybe I am wrong in thinking that more than Dhs320 in Al Qurm is unreasonable?

K

#16 DesertDream

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Posted 08 March 2011 - 12:18 PM

Thanks for the posts and PMs - to be clear, I know the 5% is allowable under law I was just surprised they would have the cheek to ask for it given the way rents have gone in the past year.

Also, we only have a 30-day notice for renewal and although we got the renewal notice at around 60 days it was less than a week before my baby was born, so I had other things on my mind!

We informed them at the obligatory one month date that we did not want to pay an increased rent and now they are simply not responding to us. I recognise the landlord has time on his side but am hoping he'll see sense and want to keep us as tenants rather than have the villa empty for even a short amount of time and risk having to rent it out for less than what we're paying.

Any more intel on property prices - i have been told that a 5-bed in Palm Oasis is Dhs350k, so maybe I am wrong in thinking that more than Dhs320 in Al Qurm is unreasonable?

K



That's steep I would say-- at the higher end. Try Khalifa A and B, you can get 5-6 bedroom villa for less. There was an empty villa on street 36 recently -Kha A( get by going down street 27- 2nd or third right turn after the bridge. It was going for DH250k, the owner may be asking for Dh 300K now but I think if it is still not rented he will go down on it. Also, several villa behind the Women's college in Kha A and several complexes with villas too.

#17 JaneB

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Posted 13 March 2011 - 09:43 AM

KMT a friend of ours is in exactly the same compound as you in a 4 or 5 bed and is paying 250,000!! He's been in there 6 months.

#18 Flashy

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Posted 13 March 2011 - 10:37 AM

Thanks for the posts and PMs - to be clear, I know the 5% is allowable under law I was just surprised they would have the cheek to ask for it given the way rents have gone in the past year.



I know our situation is totally different to yours (we live off island just past the airport) but I just wanted to share what we have experienced regarding renewing our rent.

We just renewed last night & got a 20% reduction in our rent AND are now paying monthly. We would have moved out if the landlord had expected us to even still pay the same rent. Mind you, we will be leaving the country in the next couple of months anyway but we made this very clear to the landlord.

#19 KMT

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Posted 16 March 2011 - 10:31 PM

thanks flashy. just by way of update, the landlord agreed to waive the 5% increase, keeping our rent the same as last year. not as good as a decrease, but better than nothing!




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