Maximum fee for tenancy renewal is Dh160

Tuesday, Sep 27, 2011

Gulf News

Dubai Agents and real estate companies that demand fees from tenants seeking to renew their rental contracts are breaking the law, Gulf News has learnt.

Marwan Bin Galita, CEO of the Dubai Real Estate Regulatory Authority, says that agents who demand extra fees or commissions are breaking the law. He has urged victims of unscrupulous agents to come forward, and said the maximum fee an agency can charge for contract renewal is Dh160.

“The commission is perfectly reasonable [initially] when the work is done for customers, (but) agents charging the same commission, that is one month’s rent, to renew a tenancy when the tenant decides to renew for a further period, is not only unreasonable but also illegal,” he said.

Gulf News reader Khurram Arshad, from Sharjah, said that he was asked for Dh1,000 to renew his contract this year, after living in the same building — and paying no extra fee — for three years.

When Arshad argued with the agent, he was told that the firm was suffering financially and needed the extra cash.

Meanwhile, Vineet Kumar, head of business development at Asteco, said that tenants should double-check their contracts when renting accommodation.

“The leasing fee is a one-off and has to be paid only for the first year,” Kumar said.

By Zaher Bitar?Staff Reporter