A Complete Overview of the Rights and Options in Case of a Rent Increase in Dubai

A Rise in the rent is quite challenging for the tenant. All the tenants should know the rights first. The rise in rent is governed by proper laws and legislation in Dubai. This legal content will help you to understand the laws about the Rent increase. Furthermore, it also explains the key aspects of rent increase for its readers.

The Real Estate Regulatory Agency (RERA) is the regulatory authority of Dubai. They play the professional role in regulating the relationship between landlord and tenant. RERA maintains the “Rental Index”. Rental Index is a database that records average rental prices. They are used for different kinds of property in Dubai. Nonetheless, it is used to calculate allowable rent increases annually.

Maximum Rent Increase is described under the law. According to the law, the maximum allowable rent increase is 20% of the rent index. The rent increase is attached to the certain terms:

The current property rent must be more than 40% below the average rent. It is pre-determined with the help of the RERA index. This term makes sure that the landlords cannot impose significant rent. The Rental Index Calculator is a useful way to calculate the rent. It is provided by the relevant authority called RERA. It permits the tenants to calculate potential rent increases. The Lawyers having experts in such disputes and matters known as Real Estate Lawyers and Legal Consultants. 

Furthermore, it determines the average market rent. It is highly in use in specific areas of Dubai.  Besides, this tool also promotes transparency and fairness in the rental market of Dubai.

The percentage of rent increase is calculated based on the difference between the current rent and the average rental value. Similar units or properties are taken into account for calculation. The tenant should be given a 90 Days’ Notice before the lease agreement expires. In case, the landlord is unable to give the notice period on time, they cannot increase the rent. This prior notice period is essential to increase the rental amount. 

This is because it ensures that tenants have considerable time to determine the increase and evaluate the situation. It will help those informed decisions. If the landlord fails to comply with the rules, the tenant has the right to disagree. Following this, the tenant can file a complaint with the relevant authorities. Rental Dispute Settlement Centre (RDSC) is the relevant authority to file the complaint in the country.

Nevertheless, it is an essential step to resolve the outstanding disputes between the landlord and tenant. It is essential to understand the rights first. This is governed by adequate laws to prevent injustice and exploitation. RERA plays a pivotal role here to create harmony, balance, fairness, and transparency. 

It will help them to assess their situation and know their rights to handle the rental increase. Landlords should comply with the laws. In absence of it could facilitate tenants to seek resolution. 

They may resolve the matter via the Rental Dispute Settlement Centre. This will aid the tenants in making well-informed and pragmatic decisions. By enforcing the laws properly, the investor’s confidence takes a boost.

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