Landlords are increasingly asking tenants to bear the cost of repairs and maintenance of the properties due to strong demand for rental properties.
Tenants said that landlords reject requests for repair works such as changing taps, door locks and other leakages, asking tenants to buy the products themselves and get them fixed. They added that landlords are only willing to pay for the repairs within the walls such as pipes and cables.
“This is unfair. Being a tenant, I am not going to take water taps, locks and water heaters etc. with me to a new apartment when I am relocating. Therefore, it is the responsibility of the landlord or building owner to carry out repair work on the property,” said Abu Aiman, a long-time UAE resident.
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Tenants say that landlords are not cooperative when it comes to maintenance because there is plenty of demand for their properties due to strong growth of population in Dubai and UAE.
Rents in Dubai have increased 10 per cent during the first half of 2024 and it is projected that rents will rise at a similar percentage in the second half of the year.
Josh Nairn, leasing manager of Huspy, said traditionally, landlords in Dubai bore the burden of routine maintenance, encompassing everything from external repairs to minor fixes.
“Recently, there has been a discernible trend where landlords increasingly transfer these costs to tenants. This shift often stems from financial considerations amidst rising property values and operational expenses,” he said.
Dubai’s soaring real estate market has enticed a flood of international investors, drawn by promising returns.
“However, the surge has sparked a transformation in the dynamics between landlords and tenants, particularly concerning maintenance responsibilities. In cases where landlords live abroad and do not have an appointed maintenance company, any work required could be delayed or ignored,” said Nairn.
Siyazini Kunle Biko James, leasing manager at Betterhomes, said landlords are increasingly passing on maintenance costs to tenants.
“We are in a time where landlords are not only benefiting from the increasing markets but also capitalising on the lack of knowledge of tenants, particularly the ones new to Dubai.”
Landlord limiting maintenance services
Interestingly, James added that in many cases, landlords are slow to respond and tenants become impatient to have the issues resolved. Hence, they often handle it themselves and bear the costs.
Nairn said that typically, landlords are responsible for all maintenance as outlined in contracts, in particular structural damage and permanent fixtures.
“However, some landlords strategically limit maintenance services. They may refuse to address issues like water taps or locks unless they involve structural elements like pipes or cables within walls. This tactic not only affects tenant convenience but also serves as a subtle pressure tactic on tenants paying below current market rates, aiming to prompt them to vacate and facilitate re-rental at higher rates — an approach that raises ethical concerns and potential legal disputes,” he said, adding that “tenants paying higher rentals expect a high standard of maintenance services, failing which, they are happy to move into a new home.”
Escalating disputes need clear guidelines
Nairn added that tenant advocates emphasise the need for transparent lease agreements that clearly outline maintenance responsibilities from the outset. They recommend tenants negotiate terms diligently during the initial stages of leasing, preferably with trustworthy agents dedicated to long-term client satisfaction.
“As disputes over maintenance costs escalate, stakeholders eagerly await governmental intervention to streamline the reporting process for unethical landlord practices. Simplifying these procedures without imposing financial burdens on tenants is crucial to maintaining Dubai’s reputation as an equitable and attractive rental market.”
Nairn said over the past few years, Dubai’s real estate boom has attracted investors from around the world. However, as they seek to monetise their properties, they also need to invest in their tenant relationship. “It is much more costlier for investors to change their tenant every year than to have a longer-term commitment. Prior to signing a contract, tenants must always inquire about the types of maintenance work that is covered within the contract and those that are not.”
James of Betterhomes said they have noticed an increasing misunderstanding between both parties as details in the rental contracts are not properly communicated prior to contract signing.
He added that disputes are on the rise between landlords and tenants related to maintenance costs. “Often landlords and tenants are not properly guided or informed and the contracts are not properly detailed to ensure both parties are fairly protected. Some landlords create their own addendums which are primarily in their favour, and the tenant (in some cases) proceed to sign the contract, especially in highly demanded areas,” said James.
He called on the property consultant to operate fairly on both parties’ behalf and ensure that the details in the contract and addendum are aligned with the guidelines set by the Real Estate Regulatory Authority.
What does the law say?
According to provisions of Law No. 26 of 2007 on ‘Regulating Relationship between Landlords and Tenants in Dubai’, a landlord is liable to maintain the fixtures and fittings of a rented apartment unless it has been agreed in a tenancy contract that the tenant is responsible for maintenance works of such fixtures and fittings.
Article 16 of the Dubai Tenancy Law states: “Unless otherwise agreed by the parties, a landlord shall, during the term of the lease contract, be responsible for the real property maintenance works and for repairing any breakdown or defect that affects the Tenant’s full intended use of the Real Property.”