logo
#

Latest news with #subletting

Dubai real estate: What is illegal subletting? Experts warn against shared flats, lease breaches
Dubai real estate: What is illegal subletting? Experts warn against shared flats, lease breaches

Arabian Business

timea day ago

  • Business
  • Arabian Business

Dubai real estate: What is illegal subletting? Experts warn against shared flats, lease breaches

Subletting or partitioning a rental property in Dubai without approval from the landlord and authorities is against the law. Yet, the practice continues to remain common in parts of the city, real estate experts told Arabian Business, driven by rising rents and demand for affordable housing. Authorities have ramped up inspections in recent months, targeting unlicensed shared housing and warning of safety risks, overcrowding, and violations of building codes. That said, knowing the rules is critical to avoid fines, eviction, and legal disputes – for tenants and landlords alike. So, what exactly is considered illegal subletting or partitioning in Dubai? PP Varghese, Head of Professional Services at Cushman & Wakefield Core, defines illegal subletting as the act of tenants renting out parts of their leased property without proper authorisation from the landlord or relevant authorities. 'Specifically, this includes converting living rooms, balconies, or storage areas into bedrooms, installing makeshift partitions that block emergency exits, or subdividing units beyond their approved capacity. Dubai Municipality's regulations are clear that any structural changes require proper permits and must comply with fire safety, ventilation, and occupancy standards,' he told Arabian Business. Echoing the sentiment, Svetlana Vasilieva, Head of Sales – Secondary, at Metropolitan Premium Properties explained that 'a tenant cannot sublet or share an apartment without written permission from the landlord.' She added that many tenants sublet properties temporarily to avoid breaching contracts during relocation or to share rent costs in high-rent areas. Why does illegal subletting continue? Varghese pointed to economic conditions that make unauthorised subletting attractive to both tenants and landlords. 'The fundamental issue is an economic arbitrage opportunity created by Dubai's rental market dynamics,' he said, adding that residents often prioritise access to soft infrastructure such as retail outlets, public transport, schools, healthcare facilities, and employment hubs. These amenities are typically found in central locations, which also come with high rental prices. 'For tenants, sharing the cost of a centrally located unit makes premium areas accessible at individually affordable rates. For landlords, subdividing units allows them to achieve rental yields significantly higher than standard lease rates – sometimes 150–200 per cent of normal rental income for the same space,' Varghese said. According to Varghese, the economic incentives are 'powerful enough' that some landlords and tenants are willing to accept regulatory risks. Vasilieva also agreed that affordability plays a role. 'There are multiple reasons such as lack of awareness about the regulations, rent affordability – especially in high rent areas by sharing the cost of rent. Often, tenants need to relocate temporarily and in order not to breach the rental contract, the apartment is being sublet for a short period of time,' she said. Which Dubai areas are most affected? Older parts of Dubai report high levels of unauthorised subletting and partitioning, both experts said. According to Vasilieva, areas such as Al Rigga, Deira, and Satwa are among the most affected. She also noted that villas in Jumeirah and larger apartments in Dubai Marina are commonly sublet, especially by younger bachelors and new arrivals. In addition, Varghese explained that the areas most affected are 'typically those that offer the best combination of central location, soft infrastructure access, and rental arbitrage opportunities.' Parts of Bur Dubai, Sheikh Zayed Road, and Jumeirah Lake Towers are also locations with 'see significant illegal subletting activity.' Aside from this, Varghese also listed mid-tier areas with affordable base rents but strong connectivity, including Al Qusais, International City, Discovery Gardens, and parts of Business Bay. 'Interestingly, we're seeing increasing violations in newer developments across various emirates where the economics work favourably – areas that combine reasonable base rental rates with strong connectivity to employment centres and urban amenities,' he said, adding that the pattern consistently follows 'locations where the gap between individual affordability and area desirability creates the most profitable arbitrage opportunities for landlords.' What are the legal consequences? There is a clear legal framework in Dubai on the matter. Article 25 (1)(b) of Law No. 26 of 2007 states that unauthorised subletting is a breach of contract. 'This entitles the landlord to seek eviction of both the tenant and subtenant,' Vasilieva said, adding that if the sublease generates higher revenue than the original tenancy agreement, landlords must file a case at the Rental Dispute Centre to recover the financial difference between the revenue earned from the sublease and the rent stipulated in the original tenancy agreement. 'The landlord may pursue a claim for compensation, these are in addition to any orders issued,' she said. Varghese added that penalties for violations can include fines of up to AED 50,000, with additional fines for overcrowding starting from AED 10,000 per incident. However, there are more repercussions than just a penalty, he added. 'Violations create a documented history with authorities that can complicate future property management and leasing activities,' he said. 'Properties with a history of illegal partitions or overcrowding may face higher scrutiny, lower valuations, and difficulty in sale. Insurance claims may be denied for properties with unauthorised modifications, and owners may face civil liability for safety incidents.' What are the other risks? Another risk is safety concerns – a major issue highlighted by the experts. Varghese explained that illegally partitioned units often result in overloaded electrical systems, blocked fire exits, and inadequate ventilation. 'In emergencies, these unregulated layouts can be life-threatening,' he said, adding that the Civil Defense has 'repeatedly flagged illegal partitions as a fire hazard.' Vasilieva further explained blocked ventilation and emergency exits are among the most common safety risks in such units. Are tenants aware of what is legal? 'It's a responsibility of the landlord to inform the tenants what is allowed in a shared house,' Vasilieva said, stressing that clear terms and conditions should be outlined in tenancy agreements. 'Many new expats don't realise that sharing a flat is only legal when the landlord consents and partitions are approved,' Varghese said, adding that lack of awareness often leaves tenants vulnerable to eviction, even if they have paid rent on time. However, regular inspections carried out by Dubai Municipality has reduced the opportunities for illegal subletting. 'Dubai Municipality conducts regular inspections and responds to public complaints. Enforcement has strengthened, but given the demand for low-cost housing, some illegal setups persist,' he explained, concluding that recent efforts to digitise building permits and track inspections are helping to close enforcement gaps.

College Student Returns Home After a Month and Finds 2 Naked Strangers Living in His Apartment: Report
College Student Returns Home After a Month and Finds 2 Naked Strangers Living in His Apartment: Report

Yahoo

timea day ago

  • Yahoo

College Student Returns Home After a Month and Finds 2 Naked Strangers Living in His Apartment: Report

Attorneys suggested the apartment did not breach their contract with the Pennsylvania college student A Pittsburgh college student says he returned home after a month away to allegedly find two naked people in his apartment. Maverick Crupi, who attends the University of Pittsburgh, said he came across the two individuals upon returning to his unit at the SkyVue Apartments in June, according to CBS affiliate KDKA. Crupi said he quickly realized that many of his personal belongings were missing, and saw new pots and pans in the kitchen. Soon after, he ran into the first naked individual. "This lady, she's probably like 35, 40 [years old], just naked, walks out, looks at me and starts screaming," he recalled. ADVERTISEMENT Crupi claimed his former roommate had sublet his room, the outlet reported. But the college student said he was given no notice that this was taking place. There is a clause in the contract Crupi signed for the apartment that stated subletting "is allowed only when we expressly consent in writing.' It also said, "the remaining resident and replacement residents must sign an entirely new lease contract.' However, the outlet reported that Crupi signed what is known as a 'by-the-bed' lease and was only renting his room in the unit. According to KDKA, attorneys said SkyVue did not breach the contract. One of those attorneys, Daniel Stoner, said the subletting clause would have gone into effect if Crupi and his former roommate had signed a joint lease agreement. Never miss a story — sign up for PEOPLE's free daily newsletter to stay up-to-date on the best of what PEOPLE has to offer, from celebrity news to compelling human interest stories. SkyVue did not immediately respond to PEOPLE's request for comment. ADVERTISEMENT Now, Crupi is warning others to 'look at your contract' and 'look at the laws that are in the city' when it comes to leasing. 'Try to see if you're getting what you're entitled to,' he said. 'At the end of the day, the bare minimum, hopefully, at least you're getting that, and people are following their contract.' Read the original article on People

Pittsburgh college student says he returned to apartment to find 2 strangers living there
Pittsburgh college student says he returned to apartment to find 2 strangers living there

CBS News

time2 days ago

  • CBS News

Pittsburgh college student says he returned to apartment to find 2 strangers living there

When a college student in Pittsburgh returned to his apartment after being away for a month, he found two strangers living there instead of his roommate. University of Pittsburgh student Maverick Crupi said he was blindsided last month when strangers suddenly moved in without notice from his landlord at the SkyVue Apartments. "I opened the door, I walked in, and everything in the kitchen that was there, that I had there, was no longer there," Crupi said. "And there was new pots, there was new pans, there's a candle." Crupi said he also found two naked strangers inside his apartment in the city's Oakland neighborhood. "This lady, she's probably like 35, 40 [years old], just naked, walks out, looks at me and starts screaming," he said. The college student said he was given no notice that his former roommate apparently sublet his room. After reviewing his contract, he believed it was in total violation of his rights as a tenant. "If you're going to rely on the contract to have me pay you rent every month and utilities and follow whatever addendums you have in there, then you, as the person that made the contract, need to follow it to a T, too." A clause in the contract states that replacing a resident or subletting "is allowed only when we expressly consent in writing," going on to say that "the remaining resident and replacement residents must sign an entirely new lease contract." But KDKA Investigates learned the contract Crupi signed was a "by-the-bed" lease, meaning while his apartment was a two-bedroom with a shared living space, he was only renting, paying for and leasing his bedroom. Several local attorneys told KDKA Investigates SkyVue was not in breach of the contract. "Because these were individual separate leases, then that's something where he's not really going to have much of a claim to the breach of the covenant of quiet and enjoyment here, just because new tenants were put in there without his prior knowledge or consent," attorney Daniel Stoner said. Stoner said that had Crupi and his former roommate signed a joint lease together, the subletting clause in his contract would have been effective. But even then, Stoner said it comes down to landlord discretion. "It is true that the landlord, that's really at their discretion and option if they want to enforce those clauses or not, and sometimes they do. Sometimes they don't," Stoner said. Several attorneys KDKA Investigates talked to say most tenant-landlord contracts typically are more landlord-friendly and weigh in favor of the property owner. "Look at your contract, look at the laws that are in the city, try to see if you're getting what you're entitled to. At the end of the day, the bare minimum, hopefully, at least you're getting that, and people are following their contract," Crupi said. Stoner said make sure tenants read and understand their contracts, and do not be afraid to ask questions. "Those are questions that you certainly should be asking, particularly if you are entering into a lease where you're renting out an individual bedroom and you're living in a unit with other people that are that are renting," Stoner said. If a tenant needs help with a contract, Stoner said to contact an attorney. He also suggested practicing good communication. Even so, Stoner said the landlord could have done a better job making sure this wasn't a surprise for Crupi. "If somebody did get hurt, the landlord could potentially be liable for all this," the attorney said. "This could have been easily preventable just by giving the guy a call or sending him a text or email to let him know this is happening."

Disabled man made homeless after bringing subletting issue to rental watchdog
Disabled man made homeless after bringing subletting issue to rental watchdog

Irish Times

time6 days ago

  • Irish Times

Disabled man made homeless after bringing subletting issue to rental watchdog

A disabled man, who uses a wheelchair, said he has been made homeless after discovering he was unknowingly subletting from another tenant . Upon raising the issue with the Residential Tenancies Board (RTB), the man said days later he came home to find the locks of the front door changed and all of his belongings in suitcases and plastic bags outside the accommodation, including his wheelchair. He said this was done by the other tenants of the flat, one of whom he was subletting from. The RTB said it could not comment on 'any individual or ongoing dispute resolution cases'. READ MORE The man, who is originally from outside the EU, has lived in Ireland for two years. He suffers from a disease that affects his metabolism and has significantly weakened his muscles since adulthood. He wishes not to be named by The Irish Times for fear of it being used against him when looking for future accommodation or employment. Having already attended university in his home country, he recently graduated from a higher education institution in Dublin with a diploma in computer science. He said 'student visa restrictions and the challenges I face as a wheelchair user made it nearly impossible' to secure a job before graduating. He came to Ireland in July 2023 and found a room to rent in Santry , Dublin 9, where he has stayed for the past two years. He said he recently discovered the official rent for the flat and that he had been overcharged for the entirety of his living there. On June 28th, he took this to the RTB 'to request a refund and ask for the rent to be adjusted fairly'. He said they told him 'they couldn't help because I had no formal lease, and paid rent to another tenant, and had never seen or dealt with the landlord directly'. [ Households of people with disabilities hit by extra costs and lower income Opens in new window ] In response to these claims, the RTB said it 'cannot comment on any individual or ongoing dispute resolution cases'. In email correspondence seen by The Irish Times, the property's letting agent informed him that the landlord 'has no record of a tenancy agreement or contractual relationship with you'. The landlord 'had no knowledge of your occupancy in the property and you were occupying the property without consent,' the agent said. Days after bringing a case to the RTB, he said 'everything changed'. 'When I arrived, there was a man in the house who spoke to me in an aggressive way and told me to leave. I don't know who he was. He might have been the landlord or someone from the estate agency,' he said. He said 'thankfully, some friends helped me collect my belongings, and one of them is now keeping them safe. Unfortunately, none of them were able to host me even for a short while, because their homes are not wheelchair accessible'. The man is a member of Disability Power Ireland, a grassroots disability advocacy group. Availing of their support, they said he was using the last of his savings to stay in a private hostel.

UAE Property: ‘What are the consequences if I sub-let my rented apartment?'
UAE Property: ‘What are the consequences if I sub-let my rented apartment?'

The National

time12-07-2025

  • Business
  • The National

UAE Property: ‘What are the consequences if I sub-let my rented apartment?'

Question: I want to try to make a business from my rented apartment but have heard that this may be illegal. What are the consequences if I sub-let my apartment without written permission, and how can I do it correctly? BM, Dubai Answer: As per Article 24 of Law 26/2007, any form of subleasing or assignment requires prior written consent from the landlord and a registered sublease Ejari, otherwise it constitutes a material breach. Common repercussions include eviction proceedings where the landlord can file for eviction of both the original tenant and the unauthorised subtenant. Another one could be security deposit forfeiture as funds are often used to cover legal fees or administrative costs associated with any eviction. Lastly, there could be service disruptions because Ejari records tie into Dubai Electricity and Water Authority (Dewa) and telecom or internet applications, resulting in utilities for an unregistered subtenant being potentially blocked, leading to abrupt disconnections. If you want to sub-let legally, I suggest you firstly read your tenancy contract because some contracts expressly forbid subleases. If yours does, renegotiation with the landlord is the only path. But in any case, submit a formal request to the landlord and provide details of the prospective subtenant (passport, Emirates ID) and intended lease term. It may be helpful to invite the landlord into your new agreement in order to share any potential income. Draft an addendum specifying the rent amount, the duration and all responsibilities, for all parties to sign. Register with Ejari by submitting the addendum and landlord's approval to the Ejari portal. Once registered, the sublease is fully recognised and Dewa, telecoms, internet and A/C can be transferred seamlessly. By following a transparent process, tenants preserve their security deposit, avoid legal disputes and maintain access to uninterrupted services. Q: My landlord has applied a rent increase above the Real Estate Regulatory Authority-index cap. If I refuse to pay the higher rate, can they evict me? DK, Dubai A: Under the updated Dubai Land Department rental index, landlords may raise rent only within prescribed bands, based on how far the existing rent falls below current market value. This can be checked legally using the DLD website or going on the Dubai Rest Application. 0 per cent to 10 per cent below market: no rent increase 11 per cent to 20 per cent below market: up to 5 per cent increase 21 per cent to 30 per cent below market: up to 10 per cent increase 31 per cent to 40 per cent below market: up to 15 per cent increase Above 40 per cent below market: up to 20 per cent increase If the landlord has given you the necessary 90 days' notice from the date of renewal to change the contract and if the proposed rent increase does not exceed these caps, you are legally bound to accept or risk non-payment, falling under an eviction ground. If he has not provided the 90 days' notice, any increase allowed or not would not be valid anyway. Let us assume he gave you the 90 days' notice but the rent increase exceeds the allowable percentage, I would suggest you write to your landlord by responding within 30 days of receiving the notice, citing the exact Rera cap and providing a screenshot of the official rental calculator result. If the landlord does not agree or insists on the illegal increase, I would proceed to file with the Rental Dispute Settlement Centre. You can lodge a case online or at the dispute resolution centre in the DLD building in Deira, Dubai. You must do this within 30 days of the rent increase notice. You will most probably be asked to attend a mediation session as the Rera will set a meeting where both parties can negotiate. Landlords often agree to a smaller increase rather than prolong a dispute. If mediation fails, a tribunal issues a binding ruling within 15 to 30 days, typically siding with the tenant if the landlord's increase breaches the cap. Importantly, landlords cannot serve an eviction notice solely for refusing an unlawful increase. Any eviction attempt on those grounds will probably be dismissed, and the landlord may even face penalties for defying Rera regulations.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store