This article will show you all you need to know about Dubai Rent Increase Law because renting an apartment is one of the most popular ways to live in Dubai.
Why? Because it is more convenient and less expensive to rent. Although a down payment and certain security costs are typically required for a tenant to rent a house in the city, understanding the regulations that control the relationship between a landlord and a tenant may help you reduce problems and negotiate a better bargain.
The Dubai property rental rules are regulated by the Real Estate Regulatory Affairs (RERA). To have a successful working relationship, proper contractual parameters must be created.
As a result, the RERA sets clear contract rules that must be followed, and it modifies current systems as necessary.
Dubai Rent Increase Law [Everything You Should Know About]
The RERA established various articles or statutes, and learning each of them may take a long period, and you may finally quit up.
To make your research process easier, we’ve compiled a list of all the important rules and revisions you should be aware of before renting a house in Dubai.
Article 9 of Law (26) of 2007, which states that the tenant and landlord must agree on a rent value during contract development and document it on the official tenant contract, describes the regulations and conditions for a rent increase.
The contract date necessary for the rent increase is also included in this documents. A landlord is not permitted by law to increase the home rent before the end of the contract period. Rent increases must be served within the tenure period.
Before, landlords preferred to raise the rent by higher percentages, resulting in disparities and arguments and misunderstandings. As a result, in Decree No. (43) of 2013, the governing body set statistically calculated maximum rent increases.
Example: According to Dubai property rental laws, if a landlord leases you a property at a price that is 10% below average in relation to the price range of comparable properties, increasing the rent under this circumstance is illegal.
The above scenario may not apply to you because your rent was 11- 20% lower than the average. In this instance, your landlord is permitted to raise the rent by 5% once the lease period ends.
RERA rental calculator is accessible on the official website of the Dubai Land Department (DLD) to calculate the rent increase in accordance with RERA guidelines.
Before Renting a Property in Dubai:
This section contains key laws that a renter should be informed of prior to leasing an apartment in Dubai. Both parties must follow the tenancy regulations listed below throughout and after the rental procedure.
- All rental contracts must be legally formed into binding agreements in a manner prescribed by the government or regulatory agency. For this reason, RERA has made Ejari registration required for all types of tenancy contracts in Dubai.
- Tax implications: Every residential tenant is required to pay a rental tax of 5% of the monthly rent. For example, if the rent is AED 30000, the tenant must pay 5% as rental tax. Commercial tenants are subject to various restrictions, since they must pay a tax of 10% of their annual rent.
- If there are any revisions or alterations to the contract, the tenant and landlord shall notify each other within 90 days. If you choose to terminate the lease, a 90-day rent increase notice period is required before the contract ends in Dubai.
- Eviction law- According to Law No. (33) of 2008 (an amendment to Article 25 of Law No. (26) of 2007, if a tenant fails to pay the rent within 30 days following the landlord’s notification, the landlord has the right to evict the tenant.
- The landlord must provide the tenant public notice or registered letter with a 12-month notice period for the following reasons: reconstruction, selling property, personal usage, and so forth.
- When a landlord dies, the tenancy contract does not expire but is passed on to the inheritors. The contract is binding until the inheritor cancels it.
- According to Article 18, if a landlord needs to build or repair a property, they must present official documentation or a license before starting the job. The landlord’s alterations must not interfere with the tenant’s optimal use of the property.
- Tenants must apply to the Dubai Water and Electricity Authority (DEWA) for water and electricity provision to the residence. The DEWA will require the following papers for application: premise number, Ejari registration number, passport copy of the landlord and tenant, and deposit payment.
- When submitting the DEWA application, ensure that all prior bills have been paid and that there are no outstanding payments for the residential or business flat you intend to rent. You may have your agent or broker check into it for you.
Frequently Asked Questions(FAQS)
Can landlords in Dubai raise rents every year?
No, landlords in Dubai can only raise the rent once the lease time has ended. After two years, the landlord must offer the tenant with a 90-day notice period in the event of a rent increase adjustment.
Where in Dubai can I file a complaint against an unfair tenancy agreement?
After unsuccessful attempts at resolution, you can seek assistance from the Dubai Land Department (DLD), which has established a specific department known as the Rent Disputes Resolution Centre.
How much will the rent in Dubai rise in 2022?
The rent for villas and residential units has grown by 20-27% over the previous year.
What is the maximum percentage of rent increase in Dubai?
The percentage of rent increase is determined by the present gap between market value and initial rent.
- 10% rent increase: If the current rent is 20-30% lower than the market value.
- A 15% increase: If the current rent is 30-40% less than the market value.
- 20% rent increase: If the current rent is 40% or more of the market value.
