Dubai’s rental market is evolving and most people worldwide are interested in staying in Dubai on rent because renting a house is the most favorable, appropriate, and inexpensive opportunity in the current scenario. If you are going to live in Dubai, it is important to know the legal rights declared by the Real Estate Regulatory Agency.
There is proper law, rules, and rights for both landlords and tenants and it is obliged for both parties to follow the law otherwise they have to face legal action.
Rental amount calculation is also a matter to discuss in the rental contract. The rental amount depends on many factors including the location and size of the property, type and quality of housing, and availability of the property. To know about the exact amount and calculations, the calculator by the Dubai Land Department will be a convenient companion for you to resolve your ambiguities related to rental amount calculation.
In this post, we will discuss tenant’s rights in rental contracts between landlords and tenants.
Can A Landlord Increase Your Rent In Dubai
There is a general discussion about rental increment in the real estate rental market in Dubai.
A question mostly asked by tenants is: Can A Landlord Increase Rent In Dubai? And simple answer is “Yes” but there are some rules and regulations to follow set by the Real Estate Regulatory Agency (RERA)
According to the law, a landlord can increase your rent but he has to inform or notify you 90 days before the completion of the tenure period or renewal of the contract. It is necessary for tenants to securitize the contract in writing as proof.
If the landlord does not inform you before 90 days then as a tenant you have legal rights to refuse an increment in rental amount and new tenure will start on the same previous amount. You can even register a case with the Rent Disputes Settlement Case at the Dubai Land Department if the landlord does not follow the rules and forces you to increase the rental amount without any written notification.
If the landlord properly follows the rules and notifies the tenants before 90 days then the tenant is legally obliged to sign the renewal agreement, before signing the renewal contract make sure all the conditions in the agreement are legally acceptable.
How Much Rent Landlords Can Increase In Dubai
To reduce the arguments between landlords and tenants about rental amount increment and to solve the query of how much rent landlords can increase, the Dubai Land Department released Decree 43 in December 2013.
0% rent permitted, if the rental is below 10% of the average rental rate in the market
5% rent permitted, if the rental is below 11% to 20% of the average rental rate in the market 10% rent permitted, if the rent is below 21% to 30% of the average rental rate in the market
15% rent permitted, if the rent is below 30% to 40% of the average rental rate in the market
20% rent permitted, if the rent is below 41% of the average rental rate in the market
Conclusion
It is obligatory to follow the laws declared by the Real Estate Regulatory Agency by both parties to reduce disputes about rental issues. It is clearly stated by the law of UAE that landlords can increase rent by following the rules and regulations.
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