Fine for tenants who fail to pay rent on time

Some local banks and real estate companies in the capital have started imposing a monthly fine of 0.5 per cent of the annual rent on the tenants who fail to renew their tenancy contract or pay the rent on time, said Sultan Al Hawsani, Deputy Chairman of the Tenancy Disputes Committee (TDC) in Abu Dhabi.

The penalty clause, which is mentioned in the tenancy contract, is applicable to all properties and buildings under the TDC.

“We can do nothing in this regard as it is agreed upon by both the tenant and the landlord,” Al Hawsani said.

Tenants should adhere to the contract’s terms and conditions to avoid any fines, which in some cases might reach up to Dh4, 000 or more every month.

It is vital that tenants should read and understand the terms thoroughly, Al Hawsani explained.

In justification, the banks and real estate companies pointed out that the landlords mostly need to pay loans and other financial dues, failing which they have to pay fines, Al Hawsani added. Source