Dubai is popular for its investor-friendly policies that attract people to invest in the real estate market. Many investors own multiple properties and provide them on rent for higher returns. Owning and managing multiple properties becomes overwhelming for investors. That said, they can sign a contract with property management companies.
However, homeowners can request the cancellation of property management contracts if the real estate manager fails to provide the services as per the agreement. Here are complete details on requesting the cancellation of a property management contract in Dubai and the reasons behind it.
Reasons Behind Termination of Property Management Contract
Property management companies in Dubai provide efficient services and help owners achieve a better ROI when buying and renting houses. Homeowners, however, have the right to change property management companies by terminating the contract with the underperforming ones.
Cancellation of property management contracts can happen due to various reasons. Following can become some of the main reasons behind cancellation of a property management contract in Dubai:
- Violation of a term in the contract that may result in strict action against the landlord
- Tenants facing issues with the maintenance services
- Inability to rent your house
Property management contract cancellation requires approval from RERA since the real estate management companies are registered with the Dubai Land Department (DLD). Besides, the homeowners need to collect the following necessary documents and materials from the property manager:
- House keys
- Property condition report
- Tenant ledger
- Tenant information
- Rental contracts, renewals or any other forms
The landlord also needs to inform the tenant about the property management contract termination. That said, the landlord will need to take care of the property themselves until signing and registering a property management contract in Dubai with a new company.
Request for Cancellation of Property Management Contract in Dubai
Similar to the registration or renewal of property management contracts in Dubai, the cancellation also requires approval from the DLD. The homeowners or property management companies can cancel the contract by meeting the following conditions and requirements.
Requirements
This service by DLD requires no documents except application for a property management contract termination request. However, they need to meet the following service terms:
- The property management company must be licenced by DLD to conduct real estate activities in the Emirate.
- Homeowner or a person with power of attorney must have a signed management contract.
- The companies and homeowners applying for the cancellation of property management contracts must be registered with Ejari in Dubai.
Method
Requesting a cancellation of a property management contract is quite simple and requires one to follow these steps:
- Applicants must sign up to the Ejari system or log into their account if they already have signed up.
- Fill in the complete information and attach the required document such as the property management company’s licence.
- Send the application electronically.
- Once the application is approved, the user receives an email stating the cancellation of a property management contract in Dubai.
Fees
Users don’t need to pay any fees when they request to cancel the property management contract in Dubai. However, they may need to clear the charges of the real estate company as some management companies charge a fee on cancellation before the term ends.
This was all about the cancellation of a property management contract in Dubai. Therefore, if you own multiple properties, you can hire a property manager to put your apartments for rent in Dubai. Since real estate managers make your house management hassle-free, you can hire a property management company in Abu Dhabi or any other Emirate where you own a property.
Stay tuned to the UAE’s leading property blog to learn about different real estate processes and applications in the Emirates.
