Dh30 million Dubai holiday home rental scam: Residents left in the dark as landlords cut power, water supply

The multi-million-dollar Evernest Holiday Home rental scam uncovered by Khaleej Times earlier this week has left hundreds of Dubai residents groping in the dark.

If losing money to the fraudulent property management company wasn’t bad enough, now scores of tenants have their electricity and water connections cut off.

Victimised landlords act tough

Failing to evict them legally, their landlords have pulled the plug.

“I’ve been using candles and battery-operated lights for the past nine days. And because there is no running water either, we’re forced to buy bottled water for washrooms as well. We’ve been deprived of basic human needs, despite having paid Dh70,000 upfront for an entire year’s rent and Dh5,000 towards security deposit,” said a shell-shocked British national, who had signed up with Evernest for a one-bedroom apartment in Dubai Marina in May last year.

An Italian couple, who lives in Business Bay, shared a similar plight.

They found their power supply cut when they returned from vacation earlier this week.

“There was no warning, no notice, no nothing. We don’t know what to do,” said F.K who requested to be referred only by his initials.

A German woman, who rented a one-bedroom apartment in Boulevard Crescent for Dh73,000, said she is forced to live with her friends, as her utilities have been shut off without any prior notice. “I contested the move and got a favourable verdict, but the services continue to remain disconnected,” she rued.

Earlier, Dubai’s Department of Economy and Tourism (DET) authorities told Khaleej Times they are investigating the scam.

The modus operandi

Reprising tactics used by con artists in the past, Evernest approached homeowners with the promise of high rental returns from sub-leasing their properties above market rates. The same properties were offered to tenants at much lower prices. But there was a catch: they had to pay the entire year’s rent at one go.

Once the company had collected more than Dh30 million in advance payments from over 250 ‘customers’, its owners sent out a mass email, entitled 'Happy Holidays', to their staff in end-December, downed shutters of their Al Sidra Tower office in Al Sufouh, and overnight vanished without a trace.

Homeowners realised they had been duped in late December when the post-dated cheques issued to them bounced because of insufficient funds.

When they rushed to their homes looking for answers, they found them occupied by people who had paid the full year’s rent in advance and had contracts with Evernest to show that they were rightful tenants.

Denied rental income and access to their own homes, the landlords then resorted to disconnecting utilities to evict the tenants.

Landlords resort to ‘extortion’

The Briton, whose power was cut off last fortnight, said he got a court order to restore the supply but hasn’t had any success as the landlord is yet to comply with the verdict.

“I am aghast. Everest was supposed to pay my Dubai Electric and Water Authority (DEWA) bills as per my contract. After it disappeared, I offered to pay for the utilities myself but the landlord flatly refused. He said if I want the power back, I should renew my contract with an annual rent of Dh110,000. This is extortion,” he said.

The Italian couple said their landlord has demanded an additional Dh15,000 to restore power. “They want to push us into a corner so that we are left with no choice but to vacate the place,” said F.K. who paid a year’s rent (Dh58,000) upfront besides a security deposit of Dh7,000.

A French expatriate whose utility services were disconnected in mid-January said his life has been turned upside down. “I buy bottled water to take a bath, flush the toilet and wash the kitchen utensils. There is no electricity which means I can neither charge my mobile phone nor laptop. Unfortunately, I have to take leave from work and put up with this harrowing situation. I barely step out of my place, as I fear the landlord will break into my home and throw out my belongings if I’m not around,” he said.

mazhar@khaleejtimes.com