Is your lease contract about to expire? If that’s the case, you might be wondering if your landlord would raise the rent on your apartment or villa. The Dubai Land Department offers an online Rental Index to make renting easier for renters in Dubai. It gives tenants a clear sense of the rent rise they may expect if their lease is up for renewal. Here’s how you can make use of it.
Will the landlord increase my rent?
First and foremost, according to Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai, if a landlord intends to increase the rent of a residential unit, he or she must notify the tenant three months before the contract is up for renewal. If you receive notice from your landlord that your rent will be increased, check to see if the increase is within the Dubai Land Department’s permitted range.
By how much can the rent be increased?
Follow these steps to use Dubai Land Department’s Rental Index service:
– Visit https://dubailand.gov.ae/en/eservices/rental-index/rental-index/#/
– Choose whether you’re renting a residential, commercial, industrial, or staff housing unit.
– From the drop-down menu, choose the contract’s end date.
– Select whether you want an apartment or a villa.
– Select the area you are living in.
– Next, you must submit information about your residential units, such as the number of rooms and your current annual rent.
– Click ‘calculate’ after you’ve confirmed the ‘Captcha’ verification.
The calculator will then provide you with information about…
- Dubai’s current rent increase guidelines
- current rentals in your neighborhood for your type of property (one bedroom, studio, villa, etc.); and
- the maximum amount of rent increase allowed, as determined by the rental increase standards.
The rent increase guidelines establish a slab system for determining the amount of rent that can be increased. This slab system is determined by comparing the current rent of a residential unit to the area’s average rent. The landlord may be entitled to raise your rent by 5, 10, or 15% depending on how low it is now.
For Example: According to the Dubai Land Department, if a unit’s current rent is 21 to 30% less than the average rental value of similar units, the rent can be increased by a maximum of 10% when the lease is renewed.
The Rental Index will calculate the amount by which your rent may increase at the time of renewal based on these parameters.
Users can also download the report for their own personal use and reference through the portal.
What if the rent increase exceeds the permitted limit?
If your rent has grown dramatically and is now more than the limit set out in the Rental Index, you can contact the Dubai Land Department’s Rental Dispute Centre at Dubai Land Department, through their toll-free number – 800 4488.