Facing a Rent Increase? Know your rights and options legally

property law

|

October 05, 2021

|

2701 views


| Your comment matters, please click here to rate article!



In Dubai, the rental increase is subject to the provisions of Decree number 43 of 2013, determining the rent increase for real property in the emirates of Dubai (the “Decree”).

Pursuant to the said Decree, the similar average rent shall be determined in accordance with the “Rental Index” approved by the Real Estate Regulatory Agency (RERA) (Article 3). RERA is a regulatory arm of the Dubai Land Department (DLD) which regulates the relationship between a landlord and a tenant. The Rental Index is as determined by RERA, which reserves the exclusive right to specify the average rent and accordingly the percentage of rent increase in Dubai. Pursuant to the Decree, the maximum increase permitted for the rental increase is that of twenty per cent against the rent index. In order for a rental increase of twenty per cent to be applied legally by the landlord, the said property should be more than forty per cent below the average rent amount as determined by the RERA index.

Rental Index Calculator:

As discussed above, RERA is responsible for maintaining and updating the ‘Rental Price Index’ in Dubai, which constitutes a database that documents the average rental prices for all types of property in Dubai. This index is then updated on a yearly basis in order to apply to all the rental transactions in Dubai. The rental index allows users to calculate the possible rent increase and also to find the average market rent of any given area in Dubai. This is a free service that can be used by any user and thus helps to maintain both transparency and a fair balance in the market in matters concerning rental increases.

Percentage of Increase:

Pursuant to Article 1 of the said Decree, the percentage of rent increase in Dubai is determined as:

When renewing real property lease contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai will be as follows:

  1. no rent increase, where the rent of the real property unit is up to ten percent (10%)
  2. less than the average rental value of similar units;
  3. five percent (5%) of the rent of the real property unit, where the rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;
  4. ten percent (10%) of the rent of the real property unit, where the rent is twenty one percent (21%) to thirty percent (30%) less than the average rental value of similar units;
  5. fifteen percent (15%) of the rent of the real property unit, where the rent is thirty one percent (31%) to forty percent (40%) less than the average rental value of similar units; or
  6. twenty percent (20%) of the rent of the real property unit, where the rent is more than forty percent (40%) less than the average rental value of similar units

In case of a rental increase, the landlord is required to provide the tenant with a ninety days’ notice before the expiry of the tenancy notifying of the rental increase. The landlord is not allowed to raise the rent, if this mandatory notice period has not to be allowed to the tenant. Further, the rental increase should also be justifiable subject to the applicable percentage of the increase as stated in this article. When the landlord does not follow these provisions, the tenant is allowed to reject the rental increase. Further, the tenant should file a complaint before the Rental Dispute Settlement Centre (RDSC) if amicable resolution is not possible.


Related Links


Copyright © of this article is retained by the author and/or other copyright owners. We explicitly grant you permission to download a copy, without any alteration, of this article for personal non-commercial research or study, without prior permission or any charge. This article can be utilized on your website or for marketing, however, we grant you permission to host this article on your website and no other rights. This content should not be altered in any way or sold commercially in any format without prior permission of the copyright holder. During reference of this article, full biographic details entailing the name of the author, his designation, the institute and the publishing date of the article shall be provided.


Comments

No comments found.

Leave a Comment

Your email address will not be published. Required fields are marked *

Want to know more?
Then talk to us.


Client Testimonials

I owe the success of my case to Dr. Hassan's diligent approach. He remained focused, put me at ease and always went the extra mile. Dr. Hassan tirelessly put my case in the best possible light and I cannot thank him enough. I would highly recommend Dr. Hassan - I am grateful to him from the bottom of my heart.

Raphael Lauria
Manager, FME General Trading

Dr. Hassan Elhais is among the best legal consultants I have ever worked with. He has an amazing ability to reduce complex issues into a simple concept that non-legal people can understand. He consistently develops innovative litigation strategies that help us to achieve our ultimate legal goals.

Zhuo Liu
Client

...the extraordinary effort that has been exerted by the staff, and we specially thank Dr. Hassan Mohsen Alhais. Wishing your continues success & excellence...

H.H. Sheikh Saeed Bin
Mohammed Hashir Al Maktoum

I believe everyone should recognize what a difference Dr. Hassan Elhais work has made to people's lives; and especially to our family's life, because we will remain forever grateful to each and every one of his team.

Luis Pozueco
Client

Dr. Hassan Elhais never fears cases that involve exposure and he always gives me his honest assessment of our chances of success, which is invaluable to me.

Bassam Yamout
Director, JM Metal Trading LCC

He aided us not only in providing legal advice but also in all legal issues that required a long term strategic approach to achieve most favorable and optimum outcomes he provided us with high level of professional service.

Philippe Delbecq
Client

Dr. Hassan Elhais is a responsible, reputable counsel who operates to high levels of service.

British Client

Dr Hassan Elhais is responsive, thorough and creative with his advice, and is a valued advisor and legal consultant.

Asma Mattar
Manager, Italian Style

Regardless of the complexity of the matter I know Dr. Hassan Elhais will consider not only legal strategy but also business practicalities in providing advice and litigation options.

Dr. Massimo Hakim
Chairman, Italian Style

I recommend Dr. Hassan Elhais to anyone who says 'I'm in legal trouble'. I was extremely satisfied with the high standard of his work. He has always been there when I have needed him and I refer all my clients, family and friends to him/his firm.

Manish Gupta
Marketing Manager, Express Digital System

Dr. Hassan Elhais was very professional and he listened to my needs. He was very prompt, efficient and always kept me informed. Dr. Hassan Elhais's service was excellent and I would definitely recommend him to friends and colleagues.

James Horsley
British Client

Select your Language:

        

Main Menu