Landlords : Here is how you can maximize Rent on Tenancy Renewal
If you are a property owner in Dubai and have been going through an unsuccessful attempt to increase the rent on a tenancy contract (lease) renewal, the “Lease / Rent Valuation Service” offered by Dubai Land Department (DLD) might provide a breakthrough during rent review negotiations.
The Dubai Land Department’s RERA, or Real Estate Regulatory Agency, is in charge of policing the tenant-landlord relationship. In order to provide tenants with some protection against large rent increases on tenancy renewals, RERA came up with the Dubai Rental Index calculator which in effect determines if the rent can be increased and by what percentage. To know more about the Dubai Rental Index, read our guide here.
Many landlords and property consultants have been critical of the Dubai Rental Index. As Gareth Davies - an award-winning, British property consultant - explained at a DLD forum in October 2022 :
the Rental Index is too generalized and has average rents which cover an entire community such as Palm Jumeirah rather than being more specific - such as providing rental figures for the twenty buildings at Shoreline apartments;
the Index does not take into account the actual size of an apartment or villa, nor the view, nor the condition of the kitchen, bathrooms etc.
DLD have the data of all the rents agreed registered at Ejari and could produce a rent per square foot for each individual tower / building and for villas rather than a rent average figure.
The Lease / Rent Valuation Service
The ‘rent valuation’ service has been created to help landlords with more accurate rental figures and to assist in reaching agreement with tenants on a rent review and tenancy renewal.
Here is how you can get a valuation from DLD.
According to DLD, the rent valuation service allows customers to request the valuation of rent for a real estate unit. Landlords or tenants can request for the service online through the official DLD website – dubailand.gov.ae, or the official DLD mobile app ‘Dubai REST’, which is available for Apple and Android devices.
What is the benefit of the service?
As a home owner, if you feel your property’s rent is too low, compared to other units on the market, you can request for a rent valuation service. This service can help finalise the rent for a unit, if there is a disagreement between the landlord and tenant on the rent of a property.
How do you apply for the rent valuation service?
You can access the service from the DLD website – dubailand.gov.ae or through the official DLD mobile app, ‘Dubai REST’ and search for ‘Request for Valuation of Property Lease’ on the website’s search bar or the app’s menu section.
However, before accessing the service, you must create an account with DLD as a property owner or tenant. Alternatively, you can log in with your UAE Pass account.
Once you sign up for the service, enter your property details and upload picture of the residential unit.
You then need to pay the service fees.
After you have completed the application, a property valuation team assigned by DLD will visit the premises. When the property’s valuation is done, you will receive a ‘Rental Valuation Certificate’.
The entire process might take a week.
The cost can range anywhere between Dh2,000 and up to Dh10,000.
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