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Making 'big money' by sub-letting flats
DUBAI - With house rents in Dubai soaring, a new trend of sub-letting of apartments to make quick profits is fast catching on.
The Dubai Municipality is looking into the issue but malpractices in real estate continue to rise in the emirate, where getting a decent accommodation at an affordable price is a tall order.
By sub-letting, one can easily earn a profit of Dh5000 to 6000 on each flat every month.
A person who is in this 'business' said, “I am making a lot of money out of this. For example, I have taken a flat with two bedrooms on Rigga Road in Deira on a yearly rent of around Dh40,000. A sum of Dh5000 is added as charges for water and electricity. Now I have put in four beds in one room and five beds in another room. The monthly rent of each bed space is Dh900, including water and electricity. So, I am getting a rent of Dh8,100 every month. The yearly income comes to Dh98,000 approximately, a net profit of around Dh45,000. I have got seven flats like these in different parts of the city.'' he said.
Arif Siddique, also involved in the illegal practice said, “One just has to make a one-time investment. We take the flats on yearly contracts from the builders and then sub-let it out to other tenants. And the whole money is recovered in just a matter of months,” he said.
The people who have to rent these bed spaces out of necessity, however, are not amused.
“This is wrong. They fix the rent as they wish just to recover the money they have paid and the rent goes higher as a result. I have to pay Dh800 for a bed space in Karama. One of my friends lives in Deira in a bigger flat paying just Dhs. 700. He has taken the space directly from a family who owns the flat. There are many such examples,” opined Siju V, who works in Jebel Ali.
“We live in bunk-beds and have to pay Dh650. There are eight people in one room. It is all crammed up but then there are no choices. The actual rent of the room could be less than Dh500. The sub-letting business is a reason for the high rents,” says a resident of Bur Dubai.
The officials of the building inspection section of the Dubai Municipality were not available for comment. But sources in the municipality said authorities were serious about the rent issue in Dubai and a solution would be found soon.
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