As popular as the weather, rental prices in Dubai are on everyone’s lips.
Whether you are moving to Dubai for the first time or renewing your lease, the rental price is at the center of negotiations.
As a tenant, you have rights. For more information, consult this guide HERE.
If your lease is coming to an end, the first question you are probably asking yourself is: will my rent increase?
Be aware that the property owner has the right to increase the rent for the apartment or villa you are renting. However, this rent increase is strictly regulated and must meet certain conditions to be valid under the law. Tools are available to tenants so they can get a clear idea of any potential rent increase.Does my landlord have the right to increase my rent?
The answer is YES. Your landlord does have the right to increase your rent. However, the 90-day rule must be followed. If the landlord decides to increase the rent for the property where you live, they must notify you 90 days before the end date of your lease (Dubai Law No 26 of 2007). If you receive this notification, you can then check whether the amount of the increase falls within the range permitted by the Dubai Land Department.I did not receive notification 90 days before the end of my lease
If the owner decides to increase the rent without notifying you 90 days in advance, you have the right to refuse the rent increase. If you cannot reach an agreement, you may file a complaint with the Rental Dispute Settlement Centre at the Dubai Land Department. Please note that the person filing a complaint with this service must pay 3.5% of the annual rent. Compensation awarded to a tenant against an owner who violates the rules can amount to up to one year’s rent.So, by how much can my rent increase?
If you wish to check whether the increase is legal, you can refer to the Rental Index Service of the Dubai Land Department. This tool is a calculator that will help you determine the possible increase in your rent before negotiating or renegotiating a lease. This tool is available on the DUBAI REST mobile application. You can download the application via the QR code on this website: Dubailand/rental-index Here are the steps to follow:- Go to the “Services” section and select “Rental Index”
- Select the type of unit you rent - residential, commercial, industrial, or staff accommodation.
- Select the lease end date from the drop-down menu.
- Choose the property type - apartment or villa.
- Select the area where you live.
- You must then provide details about your residential unit, such as the number of rooms and your current annual rent.
- Click “calculate.”
- The average rental price for the same type of property in your neighborhood
- The maximum increase permitted for the same type of property in your neighborhood
- If your current rent is less than 10% below the market value, there is no increase;
- If your current rent is 11 to 20% below the market value, the maximum increase may be up to 5%;
- If your current rent is 21 to 30% below the market value, the maximum increase may reach 10%;
- If your current rent is 31 to 40% below the market value, the maximum increase may reach 15%;
- If your current rent is 40% or more below the market value, the maximum increase may reach 20%.
