The rental market in Dubai is regulated to ensure that both the landlord and the tenant are treated fairly. If you are a tenant in Dubai and your landlord has come to you with the request of increasing the rent then you may be interested in knowing if the increase is legal and what your rights are.
The Dubai government has issued very strict rules on rent increases through Decree No. (43) of 2013, which fixed the upper limits of the rent increase according to market trends. This article will explain to you the rent increase laws in Dubai, the limits that a landlord can and cannot impose and the measures you can take if you think that your rent has been increased unlawfully.
Dubai’s Rent Increase Caps: What Landlords Can and Cannot Do
Dubai has a very good rent control system which is implemented in order to avoid the landlords from increasing the rent at their own will.
As per the provision of Article 1 of Decree No. (43) of 2013, landlords can only increase rent based on how much the current rent differs from the average market rental value, as determined by the Dubai Rent Index maintained by the Real Estate Regulatory Agency (RERA).
When renewing Real Property Lease Contracts, the maximum percentage of Rent increase for Real Property in the Emirate of Dubai will be as follows:
- no Rent increase, where the Rent of the Real Property unit is up to ten percent (10%) less than the average rental value of similar units;
- five percent (5%) of the Rent of the Real Property unit, where the Rent is eleven percent (11%) to twenty percent (20%) less than the average rental value of similar units;
- ten percent (10%) of the Rent of the Real Property unit, where the Rent is twenty-one percent (21%) to thirty percent (30%) less than the average rental value of similar units;
- fifteen percent (15%) of the Rent of the Real Property unit, where the Rent is thirty-one percent (31%) to forty percent (40%) less than the average rental value of similar units; or
- twenty percent (20%) of the Rent of the Real Property Unit, where the Rent is more than forty percent (40%) less than the average rental value of similar units.
What is the RERA Rent Index and How Does It Work?
The Dubai Rent Index, maintained by RERA, is a standard reference of the average rental prices of properties in the area. This is to ensure that rent increases are reasonable and can be easily understood.
Article 3 of the Dubai Rent Increase Law states that the average rental value must be determined based on the RERA Rent Index, which is updated at regular intervals.
The Legal Process of Increasing Rent: A Guide
In case a landlord wants to raise the rent, then they have to follow the following legal processes:
- 90-Day Notice Requirement:
- Article 14 of Law No. 33 of 2008 provides that landlords are required to give the tenants at least 90 days’ notice of the lease expiration date if the landlord wants to raise the rent.
- If the landlord does not give this notice, the tenant can refuse to take the increase in rent.
- Mutual Consent Between the Landlord and the Tenant:
- Article 13 of Law No. 33 of 2008 provides that the landlord and the tenant can negotiate and change the rent and other clauses of the contract at the time of lease renewal.
- If the parties fail to reach an agreement, the Rental Dispute Centre (RDC) may recommend a fair rent.
- Filing a Complaint to the Rental Dispute Centre (RDC):
- If a tenant has a complaint that the rent increase is unfair, they can lodge a complaint with the RDC.
- The RDC will then examine the case and make its decision based on the RERA Rent Index, economic trends, and other factors that are relevant to the case.
Read more about – Filing a Rental Dispute Complaint at the Dubai Rental Dispute Centre
What to Do if You Have a Problem with the Increase in Rent?
If you think that your landlord is trying to demand unnecessary rent from you, then you should:
- Check the RERA Rent Index: You can check the current rent you are paying and the market rate by visiting the Dubai Land Department’s RERA website.
- Review Your Lease Contract: Check whether the 90 days’ notice has been properly issued or not.
- Negotiate with Your Landlord: If the increase is above the allowed limit, then you should try to talk to your landlord and get the RERA Rent Index details from them.
- File a Complaint to the RDC: If no agreement is made, you can lodge a complaint with the Rental Dispute Centre (RDC) together with all the necessary documents such as the lease agreement and proof of payment.
How HHS Lawyers in Dubai Can Help You
Getting rent disputes in Dubai can be quite challenging and it is always important to know your rights and responsibilities. HHS Lawyers in Dubai can assist tenants and landlords with:
- Reviewing rental agreements to check whether the document is compliant with the Dubai rental laws.
- Defending tenants in disputes with landlords over excessive rent demands.
- Help in filing complaints to the Rental Dispute Centre (RDC).
- Offering legal advice to tenants and ensuring that their rights are protected.
If you are experiencing problems with your landlord increasing your rent or have any rental problems, then do not hesitate to contact HHS Lawyers for legal advice.
