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Last modified on 28th November 2023. Dubai Real Estate Blog
By Ward Mohammad
If your lease agreement is about to expire, you may be curious about the possibility of a rent increase by your landlord. In Dubai, the Dubai Land Department has introduced an online Rental Index to simplify the leasing process for tenants. The RERA rental increase law calculator is a convenient online tool that provides tenants with a clear understanding of the potential rent increase when their lease is up for renewal. Here's a brief guide on how to use it.
RERA, a division of the Dubai Land Department, is the governing authority overseeing the real estate sector. It establishes and enforces laws and regulations, manages market development, and sets essential rules for foreign investors in Dubai. Additionally, RERA collects information related to tenants and real estate owners to address disputes and associated tasks. It also monitors the legality of actions by banks, developers, insurance and law companies, and ensures the credibility of real estate advertising in the media.
Follow these steps to utilize the RERA rental increase law calculator:
The calculator will then provide information on:
The rent increase guidelines are determined by a slab system, comparing the current rent of a residential unit to the average rent in the area. Depending on how much lower your current rent is, the landlord may be entitled to raise it by 5%, 10%, or 15% upon lease renewal.
In Dubai, the Real Estate Regulatory Agency (RERA) sets the Rental Increase Calculator to safeguard the interests of both landlords and tenants. The maximum annual rent increase is generally limited to 5%, but this can vary based on property type, location, and the time elapsed since the last rent increase. The RERA website offers a detailed Rental Increase Calculator, assisting landlords and tenants in estimating the maximum allowable rental increase for each property.
According to Articles 6 and 14 of the 'Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,' also known as the Dubai Rent Law, landlords must provide a 90-day notice for any rent increases. If you receive notice of an increase, ensure it falls within the permissible range set by the Dubai Land Department, which you can verify using the RERA rent calculator.
If your rent surpasses the limit defined in the Rental Index, contact the Dubai Land Department's Rental Dispute Center at 800 4488 to report the issue.
If resolution attempts fail, file a RERA complaint at the Dubai Land Department's Rent Disputes Settlement Center in Deira.
RERA encourages tenants and landlords to use the Rental Increase Calculator during lease negotiations. Both existing and new tenants should check the Rental Price Index using the RERA rent calculator. Landlords are advised to use the RERA calculator to determine the appropriateness of rent increases.
As per the current RERA rental increase law in Dubai, landlords can only propose a rental increase three months before the contract expiry date. The increase is permissible if the current rental price is at least 22% lower than the average market price for similar properties in the area.
Explore our listings for rental apartments or villas. Before you start your search, familiarize yourself with everything to consider when renting in Dubai, including the use of RERA calculators.
Whether buying, selling, or renting in Dubai, get to know all RERA forms and their purpose in the property market. Stay updated on property-related information about Dubai and the UAE by following Driven Properties.
For more detailed information, use the RERA calculator, RERA rent calculator, RERA index calculator, RERA calculator Dubai, RERA calculator index, and RERA Dubai calculator."
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