Know Your Right: Can Your Landlord Increase Your Rent this year?

 

A landlord is required to give the tenant at least 90 days notice before making any change to rental terms, including rent, so ensure that you are given enough time to accommodate a possible rent hike or perhaps seek another property.

The rental rise cap established by a RERA decree in 2011 ranges from 5 per cent to 20 per cent of the rental value, depending on how far below market rent the property is priced at. The increase is due every year from the first renewal. Article (1) of Decree No. 2 of 2011 on rentals in Dubai declares no rent increase on properties that are priced up to 25 per cent below the average similar rent.

However, landlords may increase the rent by 5 per cent if it is 26 to 35 per cent less than the average rent value for the property and by 10 per cent if the current rental is 36-45 per cent below the market value for the unit. Additionally, property owners can hike the rent by 15 per cent if it is 46-55 per cent below the standard price and by 20 per cent if the rent is more than 55 per cent below the typical value.

If you’d like to calculate your rental increase, the Lands Department offers a useful rental increase calculator. Visit this page, enter your tenancy contract expiry date, area of residence, property type, no. of bedrooms and your current annual rent to find out what the rental increase will be.

It’s also worth remembering that the average/similar rent value of a property should be determined by the ‘Rent Index of the Emirate of Dubai’ approved by RERA. This index is updated every quarter, so visit the RERA site to determine what the average rent for your property should be.

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