To the landlord: is it possible to evict the tenant and rent the apartment to a new tenant?

Question: I plan to sell my townhouse in Dubai in the fourth quarter of 2024 for 2.4 million dirhams ($653,505). I sent my tenant a 12-month eviction notice via email. If I am unable to sell my property after the tenant moves out, can I rent it out again in the following months? Forums say that a property owner cannot rent out their property again for two years if the reason for eviction is sale. Is this true? The law seems quite unfair in favor of tenants. GM, Dubai

Response: Considering that you sent your tenant a 12-month eviction notice for the purpose of selling, and then did not sell the property, your course of action is quite straightforward. If you want to rent the property out again, you must offer the old tenant the right of first refusal. In other words, you need to offer the property back to the original tenant on the same terms and conditions as before. If they refuse or no longer wish to move in, they need to confirm this in writing, after which you can rent it out to anyone else, as you now have a letter of no objection from the departing tenant. If you simply rent the property without the previous tenant's consent, they may sue you for wrongful eviction, and you would have to pay compensation equal to the annual rent to the tenant. According to Law No. 33 of 2008, if you evict a tenant for the purpose of moving in yourself or for a close first-degree relative, you cannot rent the property out for two years. When there is a violation of the property sale rule, the law is silent on this matter.

Question: I have a question about the rights of property owners after a building is demolished. Is the reconstruction of the building the responsibility of the homeowners' association? What will be the status of the owners' rights after the building is demolished?

Response: Your question is interesting, but it requires clarification in two aspects. The answer will depend on whether the building is owned with ownership rights or is a rental property.

Property rights grant an individual ownership of physical property and the land on which it is built. Leasehold property means that an individual has physical ownership rights but does not have rights to the land on which it is built.

In the second case, a term of 99 years is usually offered to the property owner, after which the apartment itself becomes the property of the landowner. In other words, the apartment owner loses their rights to the property.

Let's start with the case of property rights. If a building is in such a condition that it requires demolition or restoration, the first step is to obtain the municipality's consent for this decision. However, the owners of the individual units retain control over the future of the building and its construction, as they are also the owners of the land. Typically, a homeowners' association is created to manage this process moving forward, regardless of whether the building will be restored or the lot will be sold.

In the case of rental properties, the same applies to owners of individual apartments. They will have a say in whether the building will be restored or the lot will be sold. However, the value of their individual apartments will decrease as the lease term approaches zero.

Mario Volpi is the Sales Director at AX Capital. He has been working in real estate for 39 years in London and Dubai. The opinion expressed does not constitute legal advice and is provided for informational purposes only. Please send your questions to [email protected]. Updated: November 16, 2023, 4:00 AM.