If your lease contract is ending, you might be wondering if your landlord would increase the rent on your property. The Dubai Land Department found an online Rental Index to make leasing more comfortable for renters in Dubai. This handy online tool gives tenants a clear insight into the rent rise they may anticipate if their lease is up for renewal. Here's a quick guide to clarify how you can use it.
WILL THE LANDLORD RISE MY RENT IN DUBAI?
Your landlord is required by law to notify you of any rent increases 90 days in advance. Articles 6 and 14 of the 'Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,' often known as the Dubai Rent Law, state as much. If you receive notice from your landlord that your rent will be increased, check to see if the increase is within the Dubai Land Department's permitted range.
HOW MUCH CAN THE RENT BE INCREASED?
- Below steps to follow to use Dubai Land Department's Rental Index service:
- Visit https://dubailand.gov.ae/en/eservices/rental-index/rental-index/#/
- Choose whether you rent a residential, commercial, industrial, or staff housing unit.
- From the drop-down menu, choose the contract's end date.
- Select whether you want an apartment or a villa.
- Select the area you are living in.
- Next, you must submit information about your residential units, such as the number of rooms and your current annual rent.
- Click 'calculate' after you've confirmed the 'Captcha' verification.
The calculator will then provide you with information about:
- Dubai's current rent increase guidelines
- current rentals in your neighborhood for your type of property (one bedroom, studio, villa, etc.); and
- The maximum rent increase allowed as determined by the rental increase standards.
The rent increase guidelines establish a slab system for determining the amount of rent that can be increased. This slab system is determined by comparing the current rent of a residential unit to the area's average rent.
The landlord may be entitled to raise your rent by 5, 10, or 15%, depending on how low it is now. For Example: According to the Dubai Land Department, if a unit's current rent is 21 to 30% less than the average rental value of similar units, the rent can be increased by a maximum of 10% when the lease is renewed.
Based on these parameters, the Rental Index will calculate the amount your rent may increase during renewal. Users can also download the report for personal use and reference through the portal.
WHAT IF THE RENT INCREASE EXCEEDS THE PERMITTED LIMIT?
Suppose your rent has grown dramatically and is now more than the limit set out in the Rental Index. In that case, you can contact the Dubai Land Department's Rental Dispute Center at Dubai Land Department through their toll-free number – 800 4488.
WHERE CAN I COMPLAIN ABOUT MY LANDLORD IN DUBAI?
If you're facing a problem between you and your landlord and you've tried every other resolution, the last alternative is to file a RERA complaint at the Dubai Land Department's Rent Disputes Settlement Center. Their head office is located in Deira.
THINGS TO KEEP IN MIND ABOUT THE RENTAL INCREASE IN DUBAI
- RERA encourages tenants and landlords to use the Rental Increase Calculator when negotiating leasing contracts.
- A quick check of the Rental Price Index using the RERA rent calculator must be done by existing and new tenants when renting apartments in Dubai.
- Landlords should use the RERA calculator to determine whether they are eligible to increase the rents of the housing units they are leasing.
According to the current RERA Tenancy law, landlords can only demand a rental price increase three months before the expiry date of a rental contract. Also, the increase is allowed if the rental price is at least 22% lower than the average market price of other similar property types in the area.
But before you go out souring for rental properties, learning about everything to consider when renting in Dubai will help you make better, informed decisions.
Whether you're buying, selling, or renting a property in Dubai, familiarize yourself with all the RERA forms and their purpose in the property market.
For more property-related information about Dubai and the other emirates in the UAE, stay tuned to Driven Properties.