Dubai: Is your lease contract up for renewal? If so, you may be wondering if your landlord can raise the rent for your apartment or villa. To make renting easier for tenants in Dubai, the Dubai Land Department has an online rental index, which gives tenants a clear idea of the rent increase they can expect if their contract is to be renewed. Here’s how you can use the service.
First of all, it is important to note that in case the owner plans to increase the rent of a dwelling, he is obliged to inform the tenant. three months before contract renewal, according to Dubai Law No. 26 of 2007 regulating the relationship between landlord and tenant in the Emirate of Dubai. If you receive a notice from your landlord that the rent is going to be increased, you can check if the amount of the increase is within the range allowed by the Dubai Land Department.
How much can the rent be increased?
To use the Dubai Land Department’s Rental Index service, follow these steps:
– Visit https://dubailand.gov.ae/en/eservices/rental-index/rental-index/#/
– Select the type of unit you are renting – residential, commercial, industrial or staff accommodation.
– Select the end date of the contract from the drop-down menu.
– Choose the type of property – apartment or villa.
– Select the region in which you live.
– You will then need to provide details of your residential unit such as the number of bedrooms and your current annual rent.
– Once you have confirmed the ‘Captcha’ verification, click on ‘calculate’.
The calculator will then provide you with details about…
1. Current rent increase guidelines in Dubai
2. the rents in effect in your locality for your type of unit (one bedroom, studio, villa, etc.); and
3. the maximum amount of rent increase allowed, according to the rent increase guidelines.
The rent increase guidelines establish a slab system for allowable rent increases. This slab system is based on what the current rent for a residential unit is, compared to the average rent in the area. Depending on the amount of your rent, the landlord may increase the rent by 5, 10 or 15%.
For example, according to the Dubai Land Department, if the current rent for a dwelling is 21 to 30% less than the average rental value of similar units, the rent can be increased by one maximum of 10 percentat the time of renewal.
Based on these factors, the Rent Index will provide you with the amount by which your rent can increase, upon renewal.
The platform also offers users the option to download the report for their personal use and reference.
What if the rent increase is not within the authorized limit?
In case your rent has been increased significantly and exceeds the limit mentioned in the rental index, you can contact the Dubai Land Department’s Rental Dispute Center, through their toll free number – 800 4488.