Renting “parking lots” inside residential buildings raises discontent among owners and tenants

Owners and tenants of residential buildings in Dubai have complained that the management companies of the buildings in which they live imposed financial fines on them, under the pretext of violating the parking regulations in the building, without any official notice or legal clarification justifying these fines, at a time when the phenomenon of renting parking spaces for residential buildings began to appear noticeably in some areas.

They told Emirates Al-Youm that they were surprised by the presence of financial fines, ranging from 500 to 1,000 dirhams, imposed on anyone who parks his car in some of the buildings’ parking lots, pointing out that they were originally parking lots that were designated for residents before the building administrations rented them to commercial offices.

They added that when they checked with the company about the reason for the fine, employees reported that the building management had powers granted to it by the Dubai Land Department, allowing it to impose these fines on residents who did not comply with the management’s instructions, calling on the concerned authorities to verify the legality of these procedures.

They stressed that imposing financial fines by a private administration without an official authorization is a matter that lacks legal basis, pointing out that parking lots are part of the basic property facilities, and changing their use without consulting the owners or obtaining their approval represents a violation of their basic rights as owners of residential units.

While Emirates Today did not receive a response from the Dubai Land Department regarding the inquiries of these tenants and owners.

For their part, real estate agents confirmed to Emirates Al-Youm that parking lots in residential buildings are an inherent right reserved for their residents, and they are supposed to benefit from them freely without any additional restrictions, pointing out that some building administrations rent parking lots to companies for the purpose of profit.

They stressed the necessity of having clear controls for building management, to control the relationship and maintain order, noting that any fines imposed on violators, whether for encroaching on parking lots not designated for them or others, are supposed to be implemented after the approval of the relevant authorities.

Legality of the procedure

In detail, residents of residential buildings presented the challenges they face, related to parking, and the imposition of financial fines on them by private management companies, without an official decision or declared authorization from a competent authority, and the resulting lack of communication and transparency with the owners or tenants to explain the matter.

They called on the concerned authorities to verify the legality of these procedures, and to clarify whether private building administrations are allowed to impose financial fines on residents, stressing that such actions may open the door to violations that affect the rights of owners and tenants.

The owner of an apartment in a building in the “Sports City” area (M.N.) said: “We were not officially informed of these decisions, and the building management did not hold any meeting with the owners or tenants, and contented itself with hanging an announcement inside the elevators containing a list of fines.”

He stressed that the imposition of financial fines by a private administration, without an official authorization, is a matter that lacks legal basis, indicating that the claim of the existence of powers granted by the Dubai Land Department is unclear, and no official document has been submitted to prove this. What was happening was considered an abuse of powers, especially since the only authority authorized to issue violations is the judicial authority.

He continued: “The administration’s reliance on general, undocumented justifications increases residents’ doubts about the legality of the fines, especially since the administration is a private company that does not have the authority to impose financial penalties,” pointing out that any measures of this kind must be based on declared and clear laws, and not on internal interpretations or decisions.

Commercial benefits

For his part, the resident of a residential building (M.H.) said that the building management’s renting of parking lots to commercial offices after they were allocated to residents constitutes a violation of the common property rights within the building. He added: “Parking is part of the basic real estate facilities, and changing their use without consulting the owners or obtaining their approval represents a violation of their basic rights as owners of residential units.”

He explained that this decision not only affected the ease of using the parking lots, but also allowed the imposition of fines on the residents themselves if they used these parking lots that were originally allocated to them, noting that this method opens the door to exploiting shared facilities to achieve commercial benefits at the expense of the owners’ rights.

Lack of transparency

In the same context, the owner of an apartment in the “Sports City” area (AA) said: “The way in which the building management took the decision to impose fines reflects a complete lack of transparency, as no official notices were sent or explanatory meetings were held to explain the reasons or regulatory foundations for the new decisions.”

She stressed that relying on hanging a paper inside elevators is not considered an adequate or professional means of communication, indicating that this method has created a state of dissatisfaction among the building’s residents, especially with the continued imposition of fines, without explanation or listening to their opinions.

Shared ownership

For his part, Ismail Al Hammadi, founder and CEO of Biznet Consulting, which specializes in consulting on the development and management of real estate projects in Dubai, said: “Dubai’s Joint Property Law No. (6) of 2019, in Clause (6) of Article (9), stipulates that the facilities attached or allocated to the unit, such as the garden, parking lots, warehouses, and guard rooms, are considered components of the real estate unit even if these parts are not attached to it, provided that they are spaces These facilities are attached to the unit allocated to them, without including their area within the net area of the unit.

He added: “Article 10 of the same law explicitly stipulates that the parking lots that the legislation approved by the competent authority stipulates that they should be provided or allocated to the unit are considered an integral part of the unit, and may not be separated from it, or sold separately from it. The developer must register the unit and the parking lots allocated to it in the name of the owner, in accordance with the instructions issued by the Director General in this regard, and it is not permissible in all cases. Selling the unit, or disposing of it, separately from the parking lots allocated to it.

He pointed out that the article also stipulates that the owner has the right to purchase additional parking spaces if these parking spaces are in excess of the parking spaces allocated to all units in the shared property, in accordance with applicable legislation and instructions. The Director General may specify the cases in which the owner may purchase additional parking spaces.

Al Hammadi stressed that the developer is obligated to provide the required number of parking spaces according to the project plans and the approvals of the regulatory authorities, and then allocate them to the units according to what is stated in the contracts and title deeds, indicating that the parking must be mentioned in the sales contract and title deed (with the parking number), as a right of the owner of the apartment, and it may not be sold or disposed of separately from the unit, except as permitted by the regulations.

He said: “If the parking is not mentioned in the contract or in the title deed, this matter may constitute an obstacle to the owner’s right to an automatic car park, since the contract is the law of the contracting parties and the administration that decides on disputes between the developer or the property owner.”

Al Hammadi continued: “The tenant has the right to use the facilities and services of the property, as stipulated in the Dubai Rental Law (Law No. 26 of 2007 and its amendments), including parking, as part of the rented property or among the facilities included in the rent, unless the building originally did not have parking allocated for residents, or the contract between the owner and the tenant explicitly stipulates that the rent does not include parking, in which case the tenant cannot claim an automatic right to the parking.”

Parking rental

He stressed that “the building owner or management company does not have the right to rent or exploit parking without the approval of the unit owner if the parking is registered in the unit’s title deed.”

He added: “Official fines for parking are issued by entities such as the Dubai Police, the Roads and Transport Authority (RTA), or the Land Department, within the scope of their jurisdiction, and the management company may not impose them except by setting regulations, unless there are clauses in the contract clarifying that. If the property management company imposes amounts on the residents, without a stipulation in the contract or in approved and announced rules, then the affected person can resort to the Rental Disputes Resolution Center to challenge these amounts as illegal.”

Inherent right

In turn, the CEO of Standard Real Estate Management Company, Abdul Karim Al-Mulla, stressed that parking in buildings is an inherent right, allocated to its residents, and they are supposed to benefit from it freely without any additional restrictions.

He pointed out that some building administrations or some entities managing these properties rent parking lots to specialized companies for the purpose of profit, which deprives residents of their legitimate right to use these parking lots. He continued: “From a legal and moral perspective, imposing fines on residents or preventing them from using parking lots is a clear violation of the law, and residents have the right to submit complaints to the competent authorities such as the Real Estate Regulatory Authority (RERA) to protect their rights.”

Al-Mulla stressed that any commercial exploitation of residents’ parking lots is considered an illegal violation, and residents’ rights must be fully protected without prejudice to them.

Regulated controls

In the same context, the director of real estate at Al-Waleed Real Estate Group, Muhammad Turki, said: “According to the law, each residential unit has the right to obtain specific parking spaces according to the area. For example, a (studio) unit gets one parking space, and if the area of ​​the residential unit is more than 150 square meters, it is supposed to get two parking spaces.”

Turki added that the number of “parking spaces” allocated to each unit must be recorded in the title deed, whether you are the owner of that residential unit or a tenant of it, pointing out that any additional “parking spaces” are owned by the building management or the owners association, and the individual has no right to claim them.

Regarding visitor parking, Turki confirmed that they are specified according to the basic plan of the building and official approval, and they may not be rented permanently, and they can be used for short periods according to the association’s internal regulations.

Turki stressed the need for clear controls for building management to control the relationship and maintain order, noting that any fines imposed on violators, whether trespassing on parking lots not designated for them or others, are supposed to be implemented after the approval of the concerned authorities and circulated to all residents of the building.

. Fines range between 500 and 1,000 dirhams… and owners consider renting parking lots a violation of their basic rights.