I'm not sure what you mean by 8% rental agreement + management fees. Are they not the same thing? Here (in Dubai) the agent charges the tenant to rent the property, not the owner. Then, if you want management sevices they charge 6% of the rental per month. Your Service Charges are about right.
Rent you can expect is 50,000 -55,000 (40,000 - 45,000 for a studio).
Yes it sounds like you are being overcharged, but if you signed a contract agreeing to this I don't know what you can do about it.
On the plus side the prices are rising at the moment - 1 beds for Dirhams 550,000 - 600,000 - but , of course, because of the exchange rate you lose a bit there.
There is now talk of a 2 tier service charge which could entail 2 payments, but no solid news yet - but they could go up if it happens.
Quote:
Originally Posted by Friend1422
Hi folks,
I purchased a 1 bed apartment in International City - Greece, via MINC / ROMOTEC / DUBAI GUERNSEY, about 3 years ago (nearly completing end Jan / Feb). This company has tied us into an 8 percent rental agreement on the original purchase price + Management fees for 2 years. Which is about 30,000 AED obviously the rent today is around 50,000 AED. The service charge on completion was 8,500 AED. So leaves about 21,500 (3,000 GBP per year at today’s rate !!!!!!!!).
Any one know what the service charge will be for future years, will this stay the same, go up or go down?
Any one dealt with this company on this forum? There contract also says they will make me pay for maintenance and utility charges that will eat - even more into the rent I get from them.
Looks like there 2 years 8 percent rental agreement is a total sham. I have tried to get out of their contract but they keep telling me because I signed up to them 3 years ago they are now going to hold me to it. I looks like I might have to pay them even more than what I receive in rent each year from the maintenance and utility charges.
Any one know what to do ?????
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