Khalifa panel reverts to 3-stage rent payment

DUBAI — In an unexpected move, the Social Services and Commercial Buildings Department, popularly known as Shaikh Khalifa Committee, has revoked an earlier decision to collect rent payment in two instalments and reverted to the previous system of payment in three instalments.

by

Amira Agarib

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Published: Sun 27 Mar 2005, 9:55 AM

Last updated: Thu 2 Apr 2015, 3:49 PM

A reliable source from the committee confirmed to Khaleej Times yesterday that the committee's previous decision issued last week had been revoked.

The decision stipulated that the tenants of flats belonging to the committee pay their rents in two instalments if the annual lease was less than Dh50,000.

The source explained that this decision was taken to protect the rights of the building owners and the committee, affected by the tenants' failure to pay rents on time.

"This resulted in delay of repayment of bank loans which the owners took for the construction of their buildings," the source said, clarifying that the committee had constructed these buildings and was running it till the owners pay off the entire loan.

A number of expatriates expressed their discontent with the decision, which would leave many in difficult financial situations, since they did not have the ability to settle their rents in two instalments due to steady increase in rents.

A 20 per cent increase was reported the previous year, a fact that forced tenants to allocate 60 per cent of their income to housing, especially private sector employees, while government employees were spared of this problem since they are provided with accommodation.

"Following the decision, many residents contacted the committee seeking exemption, but their applications were rejected," the source said, adding that in the light of tenants' response, the committee had revised its decision to make it easier for them.

In a related development, the source disclosed that the committee was in the process of introducing new procedures for reducing duration of the grace period for renewal of tenancy contracts from the current one month to one week, since many tenants delayed renewal of their contracts beyond the grace period.

The committee also stopped distribution of garbage bags, which were given to tenants free of charge.


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