The Real Estate Regulatory Agency (RERA) in Dubai sets the Rental Increase Calculator to safeguard the interests of both tenants & landlords. The annual rent increase is generally limited to 5%. However, that can vary based on location, property type, and the time elapsed till the last rent increase.
Are you a tenant in Dubai whose lease agreement is nearing expiration? If so, you might be wondering if your landlord will increase your rent and, if so, by how much. Understanding rent increase regulations is crucial for both tenants and landlords. Fortunately, the Dubai Land Department has developed an online tool to simplify this process: the RERA Rental Increase Calculator. Let’s delve into how this tool works and what you need to know about rent increases in Dubai.
RERA, the Real Estate Regulatory Agency, is a division of the Dubai Land Department. It plays a pivotal role in overseeing the real estate sector in Dubai, setting regulations, managing market development, and ensuring legal compliance. RERA’s responsibilities also include resolving disputes between tenants and landlords and maintaining the integrity of real estate transactions and advertisements.
To determine the potential increase in your rent, follow these steps:
The rent increase is based on a slab system that compares your current rent with the average rent for similar properties in your area. Depending on how much lower your current rent is compared to the average, your landlord might be entitled to increase it by 5%, 10%, or 15% upon lease renewal.
In Dubai, the rules governing rent increases are designed to maintain a fair and balanced relationship between landlords and tenants. Understanding when and how a landlord can increase rent is crucial for both parties to ensure compliance with local regulations.
The ‘Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,’ commonly known as the Dubai Rent Law, sets out clear guidelines for rent increases.
If you suspect that your rent increase exceeds the legal limit, you can contact the Dubai Land Department’s Rental Dispute Center at 800 4488. For unresolved issues, file a complaint at the Rent Disputes Settlement Center in Deira.
RERA promotes the use of the Rental Increase Calculator during lease negotiations to ensure fairness and transparency. It’s advisable for both existing and new tenants to check the Rental Price Index using the calculator. Landlords should also use this tool to determine appropriate rent increases.
Understanding and adhering to rent increase regulations is vital for maintaining harmonious tenant-landlord relationships in Dubai. The RERA Rental Increase Calculator is an invaluable tool for navigating these waters, ensuring that any rent adjustments are fair and within legal parameters.
Whether you’re renting, buying, or selling property in Dubai, staying informed about RERA regulations and using tools like the Rental Increase Calculator is essential. For more detailed information and property-related updates in Dubai and the UAE, consider following Driven Properties, and always use official RERA tools for accurate calculations and information.