Rent is sometimes the principal expenditure for any household, so tenants naturally want to spend as little as possible in order to get the greatest value for their money. So, how can you know if you’re overpaying or underpaying your rent? This is where the RERA Rental Increase Calculator comes in handy. Our guide contains all of the information.
RERA’S Knowledge
RERA refers for the Real Estate Regulatory Agency for those who are unfamiliar. It is a division of the Dubai Land Department (DLD) that governs the landlord-tenant relationship. RERA is also the regulating authority for all organizations and persons working in the real estate business in Dubai.
Calculator for Rental Increase
The Rental Price Index in Dubai is one important factor for which RERA is accountable. This database records average rental pricing and is updated yearly to provide transparency in rental transactions across Dubai properties.
RERA launched the ‘Rental Increase Calculator’ online tool to make the Rental Price Index more accessible and user-friendly for UAE citizens. The RERA calculator assists users in identifying potential rent increases or determining the average ‘trending’ rent of any neighborhood in Dubai.
This online tool is available to all Dubai residents for free and is an efficient method to make educated decisions regarding renting in Dubai. Let us now examine how the RERA Rental Increase Calculator works.
How do I use the RERA rent increase calculator?
Using the RERA calculator is as simple as clicking a button. The RERA calculator compares the cost of your property to the average cost of comparable homes in your region.
Before you begin, you should be aware of the following information.
- Type of property: residential, commercial, industrial, or staff housing
- Contract expiration date
- Property location/area, as well as whether or not it is a freehold property
- Type of property (apartment or villa)
- Total number of bedrooms
- Annual rent at the moment
Once you have the information, utilize the online RERA rent calculation by following the instructions below.
- Access the Dubai REST app.
- Launch the Rent Increase Calculator.
- Choose the sort of property you wish to learn more about.
- Enter the necessary information into the RERA rent calculator.
- To obtain your result, click the ‘Calculate Rental Increase’ button.
When you use the RERA calculator and click the ‘Calculate Rental Increase’ button, the screen will display you the typical rentals in your region for your selected property type as well as whether or not you are eligible for a rental increase.
If you are looking to rent villas in Jumeirah or flats for rent in Dubai Marina, the RERA rent calculator can help you determine the true worth of the property you are leasing. You’ll also know if your landlord is charging you more than the agreed-upon amount.
According to the most recent Price Price Index in Dubai, this is the framework for rental increases that a landlord can follow.
- If the rent is less than 21-30% of the average for that location, a 10% increase is applicable.
- If the rent is 31-40% less than the average, a 15% increase is applied.
- If the rent is less than 40% of the average, a 20% increase is applied.
- If you are already paying within the range specified, there will be no rental increase.
According to the guidelines, the landlord must notify the tenant of any increases in rental fees at least 90 days prior to contract renewal. If this requirement is not satisfied, the renter has the option to decline the increase.
Things to remember about the rent increase in Dubai
- When negotiating lease contracts, RERA urges tenants and landlords to utilize the Rental Increase Calculator.
- Existing and new tenants must do a fast check of the Rental Price Index using the RERA rent calculator before renting properties in Dubai.
- Landlords can utilize the RERA calculator to see if they qualify to raise the rents on the housing units they lease.
According to the current RERA Tenancy Act, landlords can only request a rental price increase three months before the rental contract expires. Furthermore, the increase is permitted provided the rental price is at least 22% lower than the average market price of other comparable property types in the region.
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