Agent lifts the lid on Dh50m property scam aimed at Dubai tenants and landlords
Authorities confirm an investigation has been launched after hundreds of tenants and landlords were duped in rental fraud
A holiday lettings scam in Dubai could have netted criminals tens of millions of dirhams, an agent who sold Evernest Holiday Homes has said.
An employee who joined the company in 2020 exclusively told The National how it quickly expanded from only a few properties on the books to more than 200 and two teams of more than 20 agents.
Tenants and landlords duped by the property management company before it vanished at the end of last year are likely to have lost a total of as much as Dh48 million in deposits, fees and rent paid in advance.
Dubai’s Department of Economy and Tourism (DET) has confirmed it is investigating the case.
“We consistently advise all guests and investors to review the relevant guidelines advised in the 2020 Holiday Home Guide to ensure their rights are protected,” said Khalid Saeed bin Touq, executive director of Tourism Activities and Classification at the DET.
Victims can report concerns or scams at ecomplaints@dubaitourism.ae or by calling +971 600 55 5559.
Bargain price rental deals
The scam involved Evernest leasing properties from landlords, promising high returns through rental income from sub-leasing the properties above market rates.
What occurred in reality was quite the opposite.
Evernest provided the property owners post-dated cheques, and then sub-leased the properties at extremely low annual rent.
The catch was that Evernest’s bargain-hunting tenants paid the entire year's rent upfront.
The agent, who used the name Jason, which is not his real name, said landlords were probably owed about Dh25 million and tenants had paid up about Dh22.5m.
“At first, the three main owners were quite casual and the targets were not that crazy so there was no stress,” said Jason.
“It was easy for me to climb the ranks as there were not many employees at the time.
“We started to hit our targets and that was when we started to expand.”
Business appeared to be booming for Evernest at the end of 2021, with more than 60 apartments rented out in the final quarter of the year.
Basic salaries for agents were relatively low at about Dh5000, but they could double that in sales commission.
“At the end of 2021 they asked us to hand in all our mobile phones as they didn’t want us to be bothered with work over Christmas,” said Jason, who estimates he is owed about Dh12,500 in salary payments.
“They were promising landlords a lot more than they were asking from the tenants, so it didn’t add up at all.
“We were told a new team was coming in. When I look back now I realise that was the exit strategy.”
Empty 17th floor offices in the Sidra Tower in Al Sufouh and at API Trio Office Tower in Barsha are the last remnants of the scam, now being investigated by authorities.
Victims with nowhere to go
British IT worker David, who did not want to give his real name, handed over Dh108,000 to rent a high-rise apartment overlooking Dubai Marina.
Like more than 450 other tenants and landlords, he was left shell-shocked after realising the company has vanished owing millions of dirhams, only days after his cheque was cashed.
“It was my first rental after recently moving to Dubai,” said David, who works for an online payments company.
“I was told the place I was looking at in Dubai Marina would be only taken off the market once I had paid a deposit.
“As soon as I told the agent I had sent the money the communication stopped.”