Civic body should take steps to check rent hike

THE landlords of Fujairah are involved in an unjustified and deliberate race of rent hikes. Owners of buildings join hands to substantially increase the rents of their residential units.

By Catch Of The Day

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Published: Tue 5 Apr 2005, 10:45 AM

Last updated: Thu 2 Apr 2015, 6:58 PM

If a landlord wants to make a reasonable hike in rents on the basis of supply and demand in the real estate market, other landlords immediately gang up and turn against him. This is exactly what happened in the emirate of Fujairah when the owner of a multi-storeyed building wanted to increase the annual lease of a single bedroom-hall apartment from Dh9,000 to Dh11,000. Other landlords mounted pressure on him to increase it to Dh14,000 so that it did not affect the hikes they were seeking. The owner could not withstand the pressure and ultimately complied with their demand to fix the rates at not less than Dh14,000.

Now, the rents committees at the municipalities are assigned the duty of fixing reasonable rents so that the delicate relationship between the landlord and the tenant is not disrupted. The rents should not be hiked in less than two years, and the increase in rents should not be more than 10 per cent, it is stipulated.

We think that the municipalities should actively move to control the market in the interest of everyone — tenants, landlords, government departments, and trade and industrial companies.



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