3.56 PM Friday, 29 March 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 04:56 06:10 12:26 15:53 18:37 19:52
29 March 2024

Sub-letting scam: More companies under Rera scanner

Published
By Parag Deulgaonkar

Dubai’s Real Estate Regulatory Agency (Rera) has received complaints against “some” companies who are involved in sub-letting properties despite their trade license not allowing them to conduct such an activity.

The agency has also advised victims of the sub-letting scams to contact the Dubai Police and the rental dispute settlement committee while they along with the Dubai Economic Department (DED) are continuing their awareness and inspection campaign.

As per the complaints received from investors against some of the companies that violate the activities they were licensed to conduct by the DED, the complaints have been categorized into three types: the first is renting through companies that are not licensed to conduct real estate activities; the second type is illegally renting a unit without having an approval to do so and finally renting from real estate companies using “counterfeit” cheques.

Rera is requesting people to verify the following information before renting an apartment:

Check the trade license of the real estate company

Check its approved activities according to its license from DED

Check registration number and the brokers’ license from Rera.

All the above information can be found on DLD’s website: www.dubailand.gov.ae

As reported earlier a company has to furnish a guarantee of Dh5 million to DED if they wish to offer property leasing and management service.

In case of any disputes (read: fraud), the rent committee can liquidate this guarantee to settle claims.

Renters should also ensure that they issue cheques only in the name of real estate management companies and get the contract registered on the Ejari so to receive a certificate assuring its official registration.

A number of companies in Dubai are involved in fleecing landlords and tenants of their money and in most cases the companies never had a license to sub-lease the properties.