# Canceling my tenancy, please help



## nzdiaspora

HI everyone, i need some help before i phone the landlord to cancel our tenancy.

I renewed my tenancy contract in Jan and paid by one cheque. I am now leaving Dubai to return to the motherland. The tenancy contract states "Two months notice in writing should be given to the landlord if the tenant does not wish to renew on expiry of the contract". There is no other reference to canceling the tenancy in the contract.

My question is: If we give the landlord two months notice, is he required to repay the 7 months of rent we pre-payed in the one cheque? Or have we lost that money for good? 

(note i have been in this apartment for 16months)


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## wandabug

The clause you have quoted is in reference to the end of the lease so is not relevant. RERA guidelines are that if you wish to cancel your tenancy during the term of your lease, the landlord may deduct 60 days penalty from the outstanding rent paid. However, it is only a guideline and if it is not actually stated in the TC he does not have to refund you. 
Anyone who thinks they may need to cancel their Tenancy during the term of the lease should ensure that there is a get-out clause included in the Tenancy Contract.
If he refuses to refund you, ask him will he refund you if you find him a new tenant, and then advertise it yourself on Dubizzle .


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## Bigjimbo

nzdiaspora said:


> HI everyone, i need some help before i phone the landlord to cancel our tenancy.
> 
> I renewed my tenancy contract in Jan and paid by one cheque. I am now leaving Dubai to return to the motherland. The tenancy contract states "Two months notice in writing should be given to the landlord if the tenant does not wish to renew on expiry of the contract". There is no other reference to canceling the tenancy in the contract.
> 
> My question is: If we give the landlord two months notice, is he required to repay the 7 months of rent we pre-payed in the one cheque? Or have we lost that money for good?
> 
> (note i have been in this apartment for 16months)


By the letter of the law, there is no requirement for the landlord to return any of the money. Depending on who he is and what he's like he may decide to return some. You have a much better chance of this happening if you can replace yourselves. Feel free to contact me regarding this as I may be able to help.


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## Bigjimbo

wandabug said:


> The clause you have quoted is in reference to the end of the lease so is not relevant. RERA guidelines are that if you wish to cancel your tenancy during the term of your lease, the landlord may deduct 60 days penalty from the outstanding rent paid. However, it is only a guideline and if it is not actually stated in the TC he does not have to refund you.
> Anyone who thinks they may need to cancel their Tenancy during the term of the lease should ensure that there is a get-out clause included in the Tenancy Contract.
> If he refuses to refund you, ask him will he refund you if you find him a new tenant, and then advertise it yourself on Dubizzle .


^^^ Beat me to it!^^^


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## wandabug

Morning Jim, I was just about to suggest she contacts you for help xxx


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## nzdiaspora

Here is an update: I just phoned the RERA help desk and they say i have two options:

Option one: Give the landlord three months written notice, and pay no penalty

Option two: Give immediate notice and pay two months penalty

Both options the landlord is required refund the outstanding balance rent we did not use.

The lady at RERA then refered me to law 26 on the RERA site but I couldn't find any reference to breaking a tenancy contract, has anyone else seen it?

Word of advice to anyone signing a new tenancy contract, make sure you include a early termination clause!!!


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## Lenochka

Early termination clause is nice.....just beware that any LL will not accept this one-sided, i.e. you will most likely have the clause in there, hence the Landlord may also make use of that - and kick you out after 4 months if he can get a higher rent


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## wandabug

nzdiaspora said:


> Here is an update: I just phoned the RERA help desk and they say i have two options:
> 
> Option one: Give the landlord three months written notice, and pay no penalty
> 
> Option two: Give immediate notice and pay two months penalty
> 
> Both options the landlord is required refund the outstanding balance rent we did not use.
> 
> The lady at RERA then refered me to law 26 on the RERA site but I couldn't find any reference to breaking a tenancy contract, has anyone else seen it?
> 
> Word of advice to anyone signing a new tenancy contract, make sure you include a early termination clause!!!


She is misleading you. Law 26 does not help you in this situation. You have paid one cheque and signed a one year TC with no get-out clause. There is no way of enforcing the penalty clause. You can only plead to the Landlord's better nature or find him a new tenant and hope he refunds you.You can appeal to RERA if he doesn't refund you but it will take a long time and you will have left Dubai.


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## Bigjimbo

Yeah its sounds like RERA is confused there. There is nothing in law 26 re early termination. If you want I may be able to help. Depending on the area you live that is!


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## Moe78

One of the downfalls of renting a place with one cheque sadly! I think your only hope of reimbursement is if you find a replacement ASAP or sub let which I would gather is illegal but can be done.


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## Bigjimbo

Moe78 said:


> One of the downfalls of renting a place with one cheque sadly! I think your only hope of reimbursement is if you find a replacement ASAP or sub let which I would gather is illegal but can be done.


^^^ Don't do this ^^^

All that would do is put someone else in an untenable position, where they could be evicted and lose their money. I have emailed you regarding this.


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## titirangi

Bigjimbo said:


> ^^^ Don't do this ^^^
> 
> All that would do is put someone else in an untenable position, where they could be evicted and lose their money. I have emailed you regarding this.


I think the idea suggested was to find another tenant on behalf of the LL and not to sub-let. This seems like good approach as the LL will not want any hassle or effort and certainly not to lose money on the deal through agency fees lower rent etc.

So if you can find the LL another tenant and ensure they do not lose money on the deal then in a much better position to settle amicably.

Be a great day for UAE renters when month by month contracts (not monthly cheques) become the norm here like they are back home. One day...

Anecdotally there seems to be a very determined flow of kiwis and ozzies heading back home from UAE presently. Curious.


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## wandabug

titirangi said:


> I think the idea suggested was to find another tenant on behalf of the LL and not to sub-let. This seems like good approach as the LL will not want any hassle or effort and certainly not to lose money on the deal through agency fees lower rent etc.
> 
> So if you can find the LL another tenant and ensure they do not lose money on the deal then in a much better position to settle amicably.
> 
> Be a great day for UAE renters when month by month contracts (not monthly cheques) become the norm here like they are back home. One day...
> 
> Anecdotally there seems to be a very determined flow of kiwis and ozzies heading back home from UAE presently. Curious.


Actually the annual contract protects the Tenant more than the Landlord. ''Back home'' your month to month rental means that the Landlord can ask you to leave with not much notice - bit of a pain when you have decorated and bought furniture. In Dubai the tenant knows he is secure in his home for at least a year. It is extremely difficult for a landlord to evict a Tenant even at the end of the lease. Even if he wants to sell his property he has to give 12 months notice to the Tenant. There are options for short term rentals (monthly) but they cost more, as with any contract the longer the lease the greater the discount.


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## titirangi

wandabug said:


> Actually the annual contract protects the Tenant more than the Landlord. ''Back home'' your month to month rental means that the Landlord can ask you to leave with not much notice - bit of a pain when you have decorated and bought furniture. In Dubai the tenant knows he is secure in his home for at least a year. It is extremely difficult for a landlord to evict a Tenant even at the end of the lease. Even if he wants to sell his property he has to give 12 months notice to the Tenant. There are options for short term rentals (monthly) but they cost more, as with any contract the longer the lease the greater the discount.


Good points there.

In NZ the policy is in favor of tenant, not sure about other markets.

=====================
Notice for a periodic tenancy

In general, a tenant must give a landlord at least 21 days’ written notice when they want to end the tenancy. A landlord may allow a tenant to give shorter notice. This should be stated in writing.

A landlord must generally give a tenant at least 3 months’ (90 days’) written notice to end the tenancy. However, there are some circumstances where the landlord is not required to give as long a notice period.
====================

Source: Giving notice at the end of a tenancy - Department of Building and Housing

Cheers!


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## Hassli

nzdiaspora said:


> Here is an update: I just phoned the RERA help desk and they say i have two options:
> 
> Option one: Give the landlord three months written notice, and pay no penalty


is this true... 

We are renting a 1bed flat here in Rigga Area for 55K and wish to transfer to Discovery Gardens. DG is mush lesser in terms of rent value and also nearer to office. 

The terms and condition of our contract states that "If the tenant wishes to terminate this contract prior to its expiry (15 Sept 2011) he shall pay two months rentas cancellation fees"

I am wondering if this 'Option One" is valid. ???

thanks a lot


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## rsinner

Hassli said:


> I am wondering if this 'Option One" is valid. ???
> 
> thanks a lot


Read the posts after the "option 1" post? If you are not satisfied with the answers you could call up RERA or go meet RERA?


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## Hassli

rsinner said:


> Read the posts after the "option 1" post? If you are not satisfied with the answers you could call up RERA or go meet RERA?





Bigjimbo said:


> Yeah its sounds like RERA is confused there. There is nothing in law 26 re early termination. If you want I may be able to help. Depending on the area you live that is!


I just called RERA (Real Estate Regulatory Agency) and state my inquiry. The guy told me that I need to call Dubai Municipality at (04)221 55 55 for this issue as RERA is not for Landlord and Tenancy issues. Tom., I will call the Dubai Municipality for this inquiry (Hope they can answer my query).

So, afterall RERA is not a the correct agency to ask for... hmmmmm.... If this is the case... No need to meet them..


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## Hassli

Hassli said:


> I just called RERA (Real Estate Regulatory Agency) and state my inquiry. The guy told me that I need to call Dubai Municipality at (04)221 55 55 for this issue as RERA is not for Landlord and Tenancy issues. Tom., I will call the Dubai Municipality for this inquiry (Hope they can answer my query).
> 
> So, afterall RERA is not a the correct agency to ask for... hmmmmm.... If this is the case... No need to meet them..


I just called the number above and refer me to call 8004488 to speak with the Rent Committee. 

I called the committee and advise me that if I wishes to terminate the contract earlier then it is either I need to follow the cancellation fees as per the terms of my tenancy contract or try to speak with the landlord and have settlement or have approval for a replacement. In short, it depends on the Landlord.

I recommend for the rent issues to called 8004488, they are friendly


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## Hassli

Hassli said:


> I just called RERA (Real Estate Regulatory Agency) and state my inquiry. The guy told me that I need to call Dubai Municipality at (04)221 55 55 for this issue as RERA is not for Landlord and Tenancy issues. Tom., I will call the Dubai Municipality for this inquiry (Hope they can answer my query).
> 
> So, afterall RERA is not a the correct agency to ask for... hmmmmm.... If this is the case... No need to meet them..


I just called the number above and refer me to 8004488 to speak with any member of the rent committee.

I called the committee and advice me that if I wishes to cancel my contract earlier then I have two option.

1) to pay the cancellation fee as per the term stated in my tenancy contract or
2) to speak to the landlord for settlement or ask for approval of my request ( somebody would like to continue our rent)


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## rsinner

Hassli said:


> I just called the number above and refer me to call 8004488 to speak with the Rent Committee.
> 
> I called the committee and advise me that if I wishes to terminate the contract earlier then it is either I need to follow the cancellation fees as per the terms of my tenancy contract or try to speak with the landlord and have settlement or have approval for a replacement. In short, it depends on the Landlord.
> 
> I recommend for the rent issues to called 8004488, they are friendly


Very useful to know. Thanks !


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## nzdiaspora

UPDATE:

We handed in our notice and the landlord is not willing to break the contract and return our money.

I phoned the rent commitee 8004488 who have said we first need to abide by any pre agreed termination clauses on the tenancy contract, in the absence of any pre approved agreement, it is up to the landlord to decide how much of a penalty we must pay.

She said in some cases the landlord may be nice and let you go with a two month penalty or in other cases (such as ours) he is legally entitled to make us pay for the rest of the year. 

I asked if we could take the landlord to court for the remainder of our rent, she said we could but the liklihood of us winning is slim as he is within his rights to charge us (because we broke the contract)
Even if we find another tenant for the landlord he is still not obliged to refund us our rent.

So WARNING to new renters, try and avoid paying by one cheque, or get a termination clause included in your contract. (this has cost us AED 58,000)


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## nzdiaspora

titirangi said:


> I think the idea suggested was to find another tenant on behalf of the LL and not to sub-let. This seems like good approach as the LL will not want any hassle or effort and certainly not to lose money on the deal through agency fees lower rent etc.
> 
> So if you can find the LL another tenant and ensure they do not lose money on the deal then in a much better position to settle amicably.
> 
> Be a great day for UAE renters when month by month contracts (not monthly cheques) become the norm here like they are back home. One day...
> 
> Anecdotally there seems to be a very determined flow of kiwis and ozzies heading back home from UAE presently. Curious.


I have spoken to the rental commitee who have said the LL is not obliged to refund our rent even if we find him another tenant!! 
I have noticed a big flow back to australia and NZ as well. We are going back because my partner got a promotion and a salary that pays more than in Dubai even with taxes! Also australia is a booming country.


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## wandabug

Thank you for the update. It is useful information for others. Make sure you don't hand him any keys until you get your deposit back in cash. If he pays deposit in cheque go to the bank and cash it first, especially as he knows you are leaving the country. He will probably want to see that you have paid your final bills as well. And just before you go, shove some prawns in the a/c vents so that the place stinks and he wont be able to rent it again!


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## Lenochka

Just make sure that the contract corresponds to the number of cheques you will have to pay....i.e, if you enter a contract for one year to pay in 4 cheques...and you fail to have a termination clause in there, the landlord will drag you to court if you just refuse to pay the other 2 cheques if you want to get out after 1/2 year for example....

be careful !


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## titirangi

nzdiaspora said:


> I have spoken to the rental commitee who have said the LL is not obliged to refund our rent even if we find him another tenant!!
> I have noticed a big flow back to australia and NZ as well. We are going back because my partner got a promotion and a salary that pays more than in Dubai even with taxes! Also australia is a booming country.


Yep thats what I am hearing as well, apart from all the other issues that folk deal with over here, the numbers due to exchange rates and poor salaries no longer stand up even with lower rents and "tax free".

Must admit we are considering the move back as well, in fact it is hard to name any of our expat friends that are not in a similar mindset right now. As you rightly state, oz is going gangbusters and life is a lot simpler over there for those of us from the commonwealth countries.

Cool adventures over here though and many fond memories from our time in UAE.

Kia Kaha.


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