Cap on rental hikes no panacea

THERE is a real fear that the problem of frequent rental hikes has not been fully solved by the decree issued by General Shaikh Mohammad bin Rashid Al Maktoum, Crown Prince of Dubai and UAE Defence Minister, fixing a 15 per cent ceiling on the rent hikes until the end of 2006.

By The Monitor

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Published: Mon 14 Nov 2005, 9:26 AM

Last updated: Thu 2 Apr 2015, 8:36 PM

The decree can not be considered a panacea. While the declaration has made tens of thousands happy as it will help them in dealing with the rising costs of living, there is apprehension in some quarters that landlords can get around the decree, say by like refusing to renew the contract if the tenant didn't accept a hike more than 15 per cent. That's why the concerned authorities and responsible parties for implementing this decree should ensure that the property owners don't use such methods.

We also wish that rent contracts should be specific about the terms between owners and tenants so that the interests of both sides are protected in a balanced way. Tenants should not get exploited and be at the mercy of the owners.

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