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“I’ve Just Lost My Job, How Am I Going to Afford My Rent?” We Reach Out to UAE Legal Experts for Advice

UAE COVID-19 | How to Renegotiate Your Housing Contract

“I’ve Just Lost My Job, How Am I Going to Afford My Rent?” We Reach Out to UAE Legal Experts for Advice

UAE COVID-19 | How to Renegotiate Your Housing Contract
Image Source: Shutterstock

In light of our current uncertain clime, companies worldwide have had to resort to cost-saving measures, which include temporary salary reductions, and in extreme cases – mass redundancies. Those who are self-employed have also expressed their concerns over the added economic pressure associated with the pandemic.

In an attempt to ease some of the financial strain that might be currently faced, we reached out to Taronish Mistry, Associate at BSA Ahmad Bin Hezeem & Associate LLP, for tips on how to renegotiate your housing contract with your landlord.

"For individuals and businesses, rent is indubitably an ongoing and major commitment. The widespread impact of COVID-19 has affected individuals and businesses as tenants. Depending on the extent of the impact, tenants may require waivers or reductions. Even aside from the impact of COVID-19, tenants may want to negotiate changes with their landlord. The likelihood of blanket provisions for rent reductions are slim – landlords are going to consider requests on a case-by-case basis," explains Mistry.

How to Best Approach Your Landlord The best way to approach your landlord is in writing, although Mistry advises that setting up a meeting and discussing the matter in person would better, as it allows you to set the tone of your request as well as your intentions. He adds that doing so will make it easier for you to keep your future communication with your landlord in context. "Prepare a strong and convincing case for yourself," says Mistry. If you're looking for a rent reduction, you have to have an objective reason. This can either be the fact that rents are reducing in general or that you have found a cheaper deal elsewhere. Make sure, however, that you have proof to back this up. Mistry reveals that this will make your argument more credible when you approach your landlord for a rent reduction. Once You Have All of Your Facts Once you have gathered all of your facts, Mistry explains that you need to have a reasonable solution to possible questions, which could include; how much of a reduction do you need and for how long. Knowing these answers before your meeting or written request will help you build a strong, credible request. After Your Request "Be prepared to haggle, so start in a position more favorable to what you are ultimately willing to accept. Try to present a win-win scenario to the landlord rather than trying to 'defeat' the landlord," Mistry explains. Who adds that being a good tenant and reminding the landlord of how good of a tenant you have been will help build a strong case for your rent reduction request.
Image Source: Shutterstock

How to Best Approach Your Landlord

The best way to approach your landlord is in writing, although Mistry advises that setting up a meeting and discussing the matter in person would better, as it allows you to set the tone of your request as well as your intentions. He adds that doing so will make it easier for you to keep your future communication with your landlord in context.

"Prepare a strong and convincing case for yourself," says Mistry. If you're looking for a rent reduction, you have to have an objective reason. This can either be the fact that rents are reducing in general or that you have found a cheaper deal elsewhere. Make sure, however, that you have proof to back this up. Mistry reveals that this will make your argument more credible when you approach your landlord for a rent reduction.

Once You Have All of Your Facts

Once you have gathered all of your facts, Mistry explains that you need to have a reasonable solution to possible questions, which could include; how much of a reduction do you need and for how long. Knowing these answers before your meeting or written request will help you build a strong, credible request.

After Your Request

"Be prepared to haggle, so start in a position more favorable to what you are ultimately willing to accept. Try to present a win-win scenario to the landlord rather than trying to 'defeat' the landlord," Mistry explains. Who adds that being a good tenant and reminding the landlord of how good of a tenant you have been will help build a strong case for your rent reduction request.

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Important Facts to Know Mistry reveals that the pandemic can make your position as a tenant stronger. He also advises you to remember that ultimately – a landlord does not want an empty property that they need to fill, especially now. It is also worth noting that Abu Dhabi and Dubai governments temporarily suspended all eviction judgments at the start of the outbreak, in an attempt to ease the minds of residential and commercial tenants. If You're Taking the Legal Route "Pursuing the legal route in light of the pandemic is possible but risky. The "hardship" argument relies on the court imposing a change to the contractual obligation. While possible, this will involve additional costs. Relying on force majeure arguments are even less likely to help," Mistry explains. "The out-of-court route is certainly cheaper and allows for negotiation, which can lead to the specific outcome you want," reveals Mistry. Who adds that it is essential to remember that you are (one of) the landlord's sources of income. The pandemic has made you, the tenant, harder to replace, as people will not be willing to create commitments in uncertain times. In Short Do your homework, prepare your best arguments, remember that you do have some power in the negotiation – even if it might not feel that way, and remind the landlord that you are a good tenant. If you follow these tips, it should boost your chances of securing a successful outcome. Click here for more COVID-19 news and features.
Image Source: Shutterstock

Important Facts to Know

Mistry reveals that the pandemic can make your position as a tenant stronger. He also advises you to remember that ultimately – a landlord does not want an empty property that they need to fill, especially now.

It is also worth noting that Abu Dhabi and Dubai governments temporarily suspended all eviction judgments at the start of the outbreak, in an attempt to ease the minds of residential and commercial tenants.

If You're Taking the Legal Route

"Pursuing the legal route in light of the pandemic is possible but risky. The "hardship" argument relies on the court imposing a change to the contractual obligation. While possible, this will involve additional costs. Relying on force majeure arguments are even less likely to help," Mistry explains.

"The out-of-court route is certainly cheaper and allows for negotiation, which can lead to the specific outcome you want," reveals Mistry. Who adds that it is essential to remember that you are (one of) the landlord's sources of income. The pandemic has made you, the tenant, harder to replace, as people will not be willing to create commitments in uncertain times.

In Short

Do your homework, prepare your best arguments, remember that you do have some power in the negotiation – even if it might not feel that way, and remind the landlord that you are a good tenant. If you follow these tips, it should boost your chances of securing a successful outcome.

Click here for more COVID-19 news and features.

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