How much can my landlord raise my rent in Dubai?

Receiving a notice of a rent hike is never a good news. Spike in rents are happening all around the emirate as more and more landlords raise their pricing. In fact, some coveted locations are experiencing an increase of as much as 21%.

Rent increases are a reality for tenants everywhere, including Dubai. But what is the most a landlord may demand? When are they able to do it? Does a tenant have the right to bargain or lodge a grievance?

These concerns are important since it benefits to be aware of your landlord's rights and restrictions. Here are some tips if you've recently received or anticipate receiving a confirmation of a rent increase.

However, why is the rent increasing so much?

It appears that most landlords do not periodically increase rent to reflect the expense of owning and maintaining a property. The owner will eventually come to the conclusion that a rent rise is required to keep up with rising property taxes, maintenance costs, and market rates after 5 years of consistent rental prices. You can experience a sudden 10–25% increase in rent after five years of low rent.

How can I find out the ongoing rental rate in the market?

The Dubai Land Department's Rental Index provides data regarding residential, commercial, and industrial properties in the emirate to tenants and landlords. Before entering into contract negotiations, users of the index can use the calculator to estimate the rental rise of any leased properties.

The index, which was initially established in 2009, assists landlords, agents, and renters in determining the maximum permitted rent increases at the end of a contract.

The index is sometimes cited as a source in disputes about rental prices between tenants and landlords.

Is there a limit to the rate that the rent can increase?

The DLD developed the Rental Increase Calculator as an online service to compute percentage rent increases in compliance with Decree No. (2) for 2011. Depending on the details of the unit in question, including its usage, location, number of rooms, and a variety of other characteristics, the service determines the increase based on the average decline in the region's rental value.

  • There is no increase if the rent is 10% below market value.
  • The most that can be increased in cases when the rent is 11–20% below market value is 5%.
  • The most that can be increased in cases when the rent is 21–30% below market value is 10%.
  • If the rent is between 34% and 60% less than market value, the maximum increase might only be 15%.
  • The maximum increase may be up to 20% if the rent is less than 40% of the market value or more.

Is my landlord adhering to the 90-day notice?

The DLD states that landlords are required to provide tenants 90 days' notice before making any modifications to the lease, including terminating it or raising the rent.

If the landlord failed to give 90 days' notice of a rent increase, tenants might very well legally object to the increase.  If the tenant does not agree to the modified conditions of the lease, they may file a complaint with the DLD's Rent Disputes Settlement Centre.

A rental sum of 3.5% is to be paid for filing a case with the rental committee. Costs are often assigned to the side that wins, albeit this may not always be the case.

A year's worth of rent may be paid in damages to a tenant who accuses a landlord of breaking the law.


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