Rental charges in Dubai can grow and the landlord has to inform the tenant in written for about such changes. Such letter can be a bad surprise for the tenant, but you don’t need to ring the alarm immediately: current legislation doesn’t allow the landlord to change rental charges with no significant reason.
How to identify if rental charges are growing rightfully?
There’s Real Estate Regulatory Authority in Dubai that controls all the agreements and operation in the real estate market. The website of Dubai Land Department has a special section with RERA calculator that can be used to calculate rental charges growth.
In order to get your result you have to indicate your rental agreement termination date, select the location of you apartments, its type, number of rooms and current rental price.
The calculator will show you a price range for similar apartments and a conclusion about your rental charges: if it can be increased or not and a possible size of such increase.
What can be the reason to increase rental charges in Dubai? RERA calculator and conditions of rental charge change. What to do if your rental charges are growing with no real reason.
According to information from RERA:
- If your rental charges in Dubai for the previous year are equal to average values or lower by not more than 25%, than your landlord has no right to increase them
- If your rental charges are lower than average values by 25…35%, they can be increased by not more than 5%;
- If your rental charges are lower than average values by 36…45%, they can be legally increased by not more than 10%;
- If your rental charges are lower than average values by 46…55%, your landlord has a right to increase them by 15%;
- If your rental charges are lower than average values by more than 55%, they can be increased by not more than 20%.
It’s worth noting that all changes to the agreement, as well as its prolongation, have to be made not earlier than in 90 days before its termination date.
What to do if RERA calculator is “against” changes, but your landlord wants to increase your rent?
If you checked RERA calculator and it says that your rental charges in Dubai can’t be changed, you have to inform your landlord about that.
Try to assign a meeting with the owner and not his agent in order to find a solution, which will be satisfying for both parties. If the owner wants to add small surcharge, you can accept new conditions, claiming not to change the rent during the following year.
If the owner wants to change the amount of rent drastically and they don’t want to discuss it with you, you need to prepare documents required for a complaint to Dubai Land Department.