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Unpaid dues wreak havoc in the Dubai rentals  industry The downturn in the Dubai realty industry that ravaged it for almost two years  did leave everyone involved in a spot of bother. It was towards the end of last  year   that   things   came   to   a   head   and   the   situation   bubbled   over.   Master  Developer   Nakheel,   who   had   been   haemorrhaging   funds   in   the   downturn,  finally decided that enough was enough. The developer behind such premier  communities such as the luxurious Palm Jumeirah and Shoreline complex got  into quite a controversy over its actions against the residents. The community  facilities like gyms, gardens and other common areas were declared to be out  of bounds to residents. Further, they also barred access to the beach areas  citing the pending settlement of unpaid dues.  As was expected by industry experts, the move did not go down well with the  residents. Most of them were tenants who had considered them to be lucky  enough  to   find  accommodation   at  one  of  the   most  sought   after  rentals   in  Dubai. Further, the tenants claimed that the landlords had collected all the  necessary dues and fees that were payable and that Nakheel should take the  matter up with the original flat owners themselves.  The master developer tried hard to resolve the problem by reasoning with the  current residents. However, the fact remained that the tenants’ claims were  also   true   and   that   the   dues   had   been   paid   up   to   the   landlords.   Thus,   if  anything,   Nakheel   should   have   been   penalizing   the   landlords   and   not   the  tenants themselves. The matters did get a wee bit serious, and after some  governmental intervention, things appeared to have been resolved.  There   were   sporadic   incidents   being   reported   by   tenants   all   across   the  Emirate, but relative calm appeared to have had set in. Earlier this month, the  dues settlement issue reared its ugly head again and Nakheel was back in the  news. This time around, it was the residents of the Marina Residences who  were up in arms against the master developer.  Apparently,   Nakheel   had   emptied   the   community   swimming   pools   at   the  prestigious   Marina   Residences   settlement   over   the   non­payment   of   dues.  Some residents  were  even claiming that  the district cooling  too was  under  threat of being disconnected. An almost unthinkable horror considering that  this would have taken place just as the summer season was beginning.  Eventually though, some dues were recovered from owners and Nakheel was  heard to be assuring residents that common facilities would be restored as 

soon as possible. However, the master developer was also reported to trying  to bring attention to the millions of dollars in dues that were outstanding.  With   Nakheel   being   a   huge   player   in   the  Dubai   rental   properties  realty  segment, such repeated incidents of misplaced actions are sure to affect their  standing   in   the   market.   This   therefore   serves   as   a   warning   sign   to   all  prospective tenants to clarify with their landlords on the status of this issue. It  would   also   be   preferable   to   get   things   in   writing   before   handing   over   the  cheque. Or else, the occurrence of such incidents is bound to be repeated in  the coming months. 

Unpaid dues wreak havoc in the Dubai rentals industry  

When a master developer decides to rake up a storm over the non-payment of dues by owners, it is the tenants occupying the Dubai rental prop...

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