Owners cannot rent out their flats on 'short-term' lease

Individual property owners in Discovery Gardens have been warned not to lease their apartments on short-term basis and violators could face legal action.

In notices posted across the lobbies of buildings in the master community, the Dubai Department of Economic Development (DED), said: “It is not allowed to rent residential units on short term lease since this activity is solely restricted to hotel apartments companies. In case of non-compliance the department will take necessary legal action against violators.”

Despite the warning, property owners are continuing to put online adverts, offering furnished apartments for Dh2,000 to Dh6,000 per week.

IJ, an owner of three apartments in the Mediterranean cluster of Discovery Gardens, says renting on short term offers the best return on investment and has been in this business for the past few years.

“I get Dh2,000 a week for my studio and Dh6,000 a week for my furnished one-bed apartments. If I can manage to rent it for a month, I make Dh8,000 and Dh24,000 a month, respectively, and is far more than what I will get if I sign yearly contracts.”

But some residents say short-term leasing is a nuisance.

Madhu P, a housewife, says: “I have been staying in Discovery Gardens for the past three years and am certain the apartment next door is being rented on short-term basis.”

She adds: “I see new faces every week… earlier we were clueless on what action we could take, but now we will certainly call 600545555 and lodge our complaint.”

In February, Nakheel interim Chief Executive Officer Sanjay Manchanda said that short-term leasing was rampant in Palm Shoreline Apartments and these renters were responsible for creating a ruckus when barred from using the pool, gym and beach.

“In Shoreline, you have people doing activities that are not in accordance to the law. People are doing short-term letting out and these people, who lease the apartments, are sold certain services at a certain price. Without knowing what is going on, they get infuriated and confront us when not allowed to access the services,” he had said.

Emirates 24|7 was first to report that it was “illegal” for individual apartment owners to offer their units on short-term leases.

Mohammed Shael, Chief Executive Officer, Business Registration and Licensing in DED, said: “Short-term residential rentals is an economic activity. Any individual would like to be involved in this activity but he needs to seek a license to be able to offer such service. This business activity would require the individual to incorporate a company through Department of Tourism and Commerce Marketing.”

Discovery Gardens consists of six themed communities inspired by garden living, and includes Zen, Mediterranean, Contemporary, Mogul, Mesoamerican and Cactus courtyard gardens. The development spans over 26 million square foot plot and has 291 buildings.

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