Why your rent’s too high, and what to do about it

The hot gossip over the garden wall in the capital these days seems to be how much rent the neighbours are paying.
Rents fell in almost every neighbourhood of Abu Dhabi last year, by as much as 25 per cent for a high-end, one-bedroom flat on the Corniche. The market shows no sign of picking up. Property company Core Savills said that this year’s drop in values would be close to 2016 levels, with prime and mid-prime villa values anticipated to fall by at least 15 per cent, and apartment prices by seven per cent.
Increasingly, tenants are finding the neighbours who just moved in next door are paying substantially less rent than they are. With the new Tawtheeq bill adding strain to their finances, when the time comes to renew the lease, tenants are prepared to push hard for a drop in rent.
But how to go about this process with delicate diplomacy?
Scottish resident David Crook has seen this question appear several times lately on the Facebook group that he runs, Tenants in Abu Dhabi (TOADS).
As a senior property manager with Abu Dhabi National Properties, he is an expert in this field, as one of his jobs is to negotiate between landlords and tenants.
"We see so many rent reduction requests coming in on a daily basis," he says. "My advice to tenants is not to be too greedy, but also be aware that there are very few occasions now where landlords are justified in proposing to increase rents. Landlords will try, understandably, to get away with holding ground as much as they can, but there is a tipping point."
Just before the two-month notice period is up, Mr Crook advises tenants to scour property websites such as propertyfinder.ae, or property managers’ lists of available units in their area, to arm themselves with evidence of current market rates.
"Its essential to do your homework," he says. "Tenants can then say to their landlord ‘Here is some proof of what’s happening in the market, so I’m looking for a reduction’. We advise landlords that it’s always better to retain a tenant at a slightly reduced rent than to have an empty property."
If your lease is with a property management company, then they will be the ones to negotiate with, says Mr Crook. "You’d have to write to that company and explain ‘I’m happy to renew, but I’m looking for X, Y, Z’. The company will then either take that decision themselves, or go back to the landlord to seek their approval."
Australian resident Judith Summers had to do some hard bartering through a property management company to achieve an 8 per cent drop in rent for the three-bedroom flat she shares with her husband in Al Muneera. The couple, whose rent had increased year-on-year since they moved in 2012, went to the negotiating table with an annual rent of Dh195,000.
"At first, they announced the rent would be increased to Dh200,000," says Ms Summers. "We offered Dh175,000, and in the end, we agreed on Dh185,000. I love living in Al Muneera and our lives are centred in this part of Abu Dhabi, so we really didn’t want to have to move. But we would have done so if they hadn’t agreed to a decrease – my husband was adamant about that."
Moving to a new property costs "at least Dh10,000", says Mr Crook, and there’s the burden of time and stress, too.

Source: The National