Rent Review Notice and Rent Increase Controls
Dubai Land Department has provided all residents with a Rental Disputes Settlement Center (RDC) and an effective Rent Increase Calculator that should be checked when considering a rent increase at the renewal of a Tenancy Contract. The Rent Index is updated every year..
Landlords are investors and will often want to increase the rent each year on renewal. Sometimes Dubai landlords ignore the rent increases allowed by the Government and introduce an arbitrary rent increase. However, Tenants can check the proposed rent against the Dubai Rental Index calculation and they can appeal to the RCC about the rent increase.
The 90-day Rent Review Notice
If a Landlord wants to increase the rent when a Tenancy is renewed he / she must serve a Notice not less than 90-days before the end of the current Tenancy Contract.
The Notice should be served on the Tenant by registered post or by a Notary Public. The increase must be according to RERA’s Rent Index and the notice sent through a registered mailing service. If a notice has not been served, the Landlord cannot raise the rent at all
In an event where there is no communication between the two parties, the contract is automatically renewed with the previous rents. If your landlord or real estate agent has given you a 30-day notice period, take the case with the rent dispute settlement committee and continue living in the apartment until the issue is solved.
Remember, following the rent index is mandatory for all landlords and so is the 90-day notice period. In case your rent has been increased to an amount that surpasses the limit outlined by the rent calculator, file a case with RERA and do not accept it in any case.
Know the Law - Rent Increase Calculations
Dubai Government has introduced strict laws to control arbitrary rent increases. Decree No. 43 of 2013 concerns the percentages of maximum property rent increase allowed upon renewal of tenancy contracts. Please note that Dubai Land Department are considering a revised Rental Index for 2023 onwards.
However, until a new law is approved, the rent increase thresholds are as follows:
If your rent is up to 10 percent less than the average rent of a similar property in the same area, your landlord cannot increase your rent.
If the rent is 11 to 20 percent less than the average rent of similar properties, the maximum rent increase will be equal to 5 per cent of the rent value.
In case the rental value of a unit is 21 to 30 percent less than average rent for similar units, the maximum rent increase allowed is 10 percent of the rental value.
If rent of a residential unit is 31 to 40 percent less, the maximum rent increase allowed is equal to 15 percent of the rental value.
For residential units having rents less than 40 percent or more than the average rent of a similar unit, the maximum rent increase applicable is 20 percent.
Contact for more information:
Email: admin@dubaiproperty.news
WhatsApp 00971568196875
Register with Ejari
Before you rent an apartment, townhouse or villa in Dubai, know that all tenancy contracts have to be registered with Ejari. It costs around AED 200 and can save you a lot of hassle in the future.
Registering your tenancy agreement with the Government places tenants in a better position, as the Government would be able to intervene and settle any disputes that may arise.
Apart from the tenancy contract, tenants require a recent DEWA bill, title deed copy or affection plan, tenant’s passport and visa and Emirates ID copy for a successful Ejari registration.
Another question that must be addressed is who would pay the Ejari fee? Real Estate Regulatory Agency (RERA) has not specified the party paying the fee, but generally, it is paid by the tenant. Where a tower is managed by a property management firm, the firm may pay the fee, only to recover it from the tenants later.
