The 117 licensed property management and leasing companies will henceforth have to abide by the new licensing regulations, following the recent rental scams that were reported.
RERA has sought amendments to the 2003 licensing regulations, to ensure protection of landlords and tenants.
Among the measures discussed are doubling the bank guarantee from Dh.5 to Dh.10mn for property management and leasing companies, else, the licensed company should have assets worth Dh.10mn to Dh.1mn bank guarantee, or restrict them to manage properties that are equal to the value of bank guarantee.
The Head Section – License, RERA, Ali Abdullah, said that these are certain measures proposed, and that they are already in talks with concerned authorities to implement changes to the Licensing Law 2003.
He said that the licensing regulations were framed even before RERA was established, and pointed out that there is need to amend Article 2 in wake of rental scams.
Abdullah advised tenants to deal with only licensed brokers and avoid freelancers. Further, tenants should ask the landlord or management company to register the rental contract on Ejari.
Nearly 60,000 properties have already been registered on Ejari in the past three months, RERA said. However, as per the latest poll, majority of the respondents have not registered their contracts on Ejari.
RERA issued Dh.50,000 in the form of fines against brokers who have been dealing with freelancers. RERA said that it plans to improve understanding and reconciliation practices, rather than referring disputes to judicial authorities.
There have been few cases of rentals scams in Dubai recently, and RERA said that it will continue to keep tenants and landlords updated about their rights and duties. The concerned parties need to check the real estate company’s license and activities before proceeding. Such information can be checked by visiting the official website of the Land Department.