Important Updates for Tenants and Landlords in UAE Amidst COVID-192 MIN READ
Dubai and Abu Dhabi have ordered Judicial Departments to halt all rental property eviction cases. Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the UAE Armed Forces issued the order on Tuesday. This was in response to the region-wide paranoia and fear instilled in both, renters and landlords regarding the unfolding situation. The coronavirus has rendered everyone unable to come out of the vicinity of their homes. This has resulted in almost all commercial businesses going out of service for the duration of the lockdown. Certain companies and firms have adopted the work-from-home standard but not every business can do that. With no business and no income being generated, renters and landlords are relying on each other to understand.
DLD Advises All to Remain Calm:
Dubai Land Department has officially claimed that they are working on plans to make this situation work. They also said that they are factoring the mental and physical wellness of all the residents of the region. According to the issued statement, they say that this is an unprecedented situation. They will require a lot of support from everyone in deciding matters for all. They said they are relying on the landlords’ moral standards in this crisis to be judgmentally sound and fair to their tenants. Furthermore, they have added that they will soon be launching better strategic plans for properties for rent. Until then, their advice to their subjects is to remain calm and not to wreak havoc.
Situation Around the UAE:
Sharjah’s investment arm, Sharjah Asset Management declared that all commercial rents would be waived for at least 3 months. This applies to Haraj and Jubil markets. There is still no word about how residential rental programs are going to work. However, there is hope that the government will announce something soon.
Even without the word of the government, landlords around the region were practicing goodwill and ease with their tenants. Social media posts and real estate agents confirmed that landlords and tenants had worked out agreements. These agreements were of various kinds. Many decided to cut the rent in half for the duration of the lockdown. Some waived the rent off indefinitely while some decided to make the rent payable in installments.
A few major developers and other firms like Emaar, Meraas and Dubai Holding have announced relief packages. These packages are huge amounts dedicated to helping their clients and associates in this time of crisis. Waiving off significant sums of the rental fee and other associated expenditures, their examples are note-worthy. One of the leading examples in this is of Aldar. The company decided to waive off the penalty and transaction fee for 2020 while introducing a lenient monthly payment plan for 5,000 tenants.
Experts around the world are busy trying to come up with various ways to help stabilize the economy. A lot of companies, governmental institutions, and even financial corporations are developing new initiatives. Banks appear to be working on extending mortgage payments and offering grace-periods. townhouses for rent in Dubai aren’t requiring transaction or registration fee right now but mortgage plans need to be renegotiated.
With all this in place, we still need to do a lot of work because the situation demands it. Strategic plans and thorough economic relief packages will need to be introduced to make things easier in this crisis.