Real estate professionals considered them to be individual practices, and they are subject to acceptance between the two parties
Tenants in Sharjah: companies charge fees under different names when renewing contracts
Tenants considered that the purpose of the fees is to compensate for the decline in rents in Sharjah during the recent period.
Photography: Ashok Verma
Sufian Al-Salamat: “If the fees are agreed upon, a receipt and tax invoice must be obtained for any amount paid.”
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Tenants of residential units in Sharjah said that some real estate companies have recently tended to impose annual fees of varying values when renewing lease contracts, under different names such as maintenance fees or administrative fees.
They explained to "Emirates Today" that the fees imposed ranged between 500 and 1200 dirhams, considering that the aim of them was to compensate for the decline in rents, and it was also an alternative to contract renewal commissions.
In turn, real estate agents said that these practices are individual and are subject to acceptance between the two parties upon renewal of the contract, stressing that the tenant has the right to refuse any exaggerated fees or not matched by additional services.
maintenance fee
In detail, the tenant, Ahmed Mahmoud, said that he was surprised when the lease contract of his apartment in Sharjah was renewed, when the real estate company that manages the property imposed additional fees on the contract.
He added that when he inquired about those fees, which amount to 500 dirhams, the company explained to him that they were maintenance fees, pointing out that the terms of the contract indicated that maintenance is on the owner.
The tenant, Muhammad Abdul Rahman, agreed with Mahmoud that some real estate companies have recently started to impose fees under different names when renewing contracts, including the so-called maintenance fees or administrative fees, at varying rates ranging between 500 and 1200 dirhams.
He said that he had to pay a fee of 1,000 dirhams upon renewal as an administrative fee, which he considered an alternative imposed by companies for contract renewal commissions.
increase profits
The tenant, Youssef Abdullah, considered that the fees that some companies recently started to impose on tenants in Sharjah when renewing contracts are aimed at increasing profits and compensating for the stability of rental prices at low rates, after they recorded remarkable decline rates during the past two years.
He indicated that he had paid an administrative fee of 500 dirhams to the company responsible for renewing the lease contract of his apartment.
The tenant, Muhammad Naji, confirmed that a number of real estate companies impose additional fees when renewing lease contracts, whether in the name of renewal commissions, administrative fees or maintenance fees, noting that these fees increase the financial burdens of the renting families, especially since renewal requires payment of fees to the municipality, in addition. to the new contract purchase fee.
Conditions
For his part, the CEO of Al Som Real Estate Company, Sufian Al Salamat, explained that “some real estate offices and companies implement practices related to collecting annual fees under the name of administrative fees, based on the agreement with the tenants, and that the contract is governed by the terms agreed upon between the two parties.”
He added, “If these fees are simple and reasonable, and in exchange for actual services performed by the real estate management company, such as attesting the lease contract and others, then there is nothing wrong with them. Tenants are those practices.”
Salamat pointed out that "in the event of agreement on these fees, it is necessary to obtain a receipt and an official tax invoice for any amount paid, and for the real estate rental company to be legally licensed."
rent stability
In turn, the real estate broker, Magdi Abdulaziz, said that "some real estate companies have started to impose administrative fees or maintenance fees in light of the stability of rents in Sharjah according to supply and demand variables."
He added that "these fees are in varying proportions, but in general they range between 500 and 1000 dirhams, and the tenants have the right to refuse if they find that the fees are exaggerated."
Abdulaziz stated, "A large number of tenants accept these fees, whether due to the difficulty of moving from one residence to another, or to avoid paying similar fees or exceeding them, along with the cost of transportation, as well as the possibility of a commission for renting new units."
individual practices
In the same context, the real estate broker, Ahmed Bakr, considered that the imposition of administrative fees or annual maintenance fees by some real estate companies is an individual practice in the markets.
He said that tenants can reject them before renewing contracts and resort to new companies to rent from, especially with the availability of multiple alternatives in the market and the availability of different companies that offer facilities when renting.
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