The law regulating Dubai rent increase is supervised by the Real Estate Regulatory Agency (RERA) which plays a vital role in maintaining stability within the rental market. These regulations instruct how much a landlord can increase rent, depending on market conditions rent value compared to the RERA index.
The Dubai Rental Law of no. 33 of 2008 is a set of laws and regulations decreed to control how and when landlords can raise rental prices for residential and commercial properties in Dubai.
These set of laws and regulations are enforced by the Real Estate Regulatory Agency (RERA), which is a division of the Dubai Land Department (DLD). RERA’s primary role is ensuring a fair and transparent rental market, and protecting tenants and landlords.
Reason for the Implementation of the Laws Regulating Dubai Rent Increase
- Protecting Tenant Rights: The primary goal is to protect tenants from excessive rent increases that could disrupt their financial stability. By regulating rent hikes, the law ensures that tenants are not unjustly pressured to resettle because of sudden rental surges.
- Ensuring Fair Returns for Landlords: While safeguarding tenants, the law also balances the interests of landlords, allowing them to adjust rent rates in line with the market value while preventing exploitation.
- Promoting Market Stability: while controlling rent increase, the law contributes to the overall stability of Dubai’s rental market. It helps prevent unnecessary fluctuations in rental prices, making Dubai an attractive destination for both expatriates and investors.
- Encouraging Long-Term Tenancy: By limiting unpredictable rent hikes, the law encourages longer-term leasing agreements, which benefits both landlords (through steady rental income) and tenants (through housing stability).
Rights of Tenants Under the Rent Increase Law in Dubai
The tenant has a right to receive a 90-day written notice from the landlord when about to increase rent. A rent increase can only be applied at the time of contract renewal, therefore notice must come at least 90 days before the end of the contract date – if this is not followed, no rent increase is permitted and the contract can be renewed on the same terms as before.
- Right to Dispute Rent Increases: Tenants are allowed to challenge an unjust rent increase by their landlordif they believe it exceeds the limits established by the Rent Increase Law in Dubai (To know more about this, you can reach out to us for a free consultation). If a landlord’s proposed increase does not align with the RERA Rental Index, tenants can file a complaint.
- Right to File a Complaint: A tenant having received a proposed increase that the tenant believes to be unjust has the backing of the law to lay a formal complaint with the appropriate authorities. The steps needed to be followed to lay a complaint are;
- Collect Evidence: Collect all relevant documents, including the lease agreement, rent increase notice, and screenshots from the RERA Rental Index showing the current market rate.
- Contact RERA or the Rental Dispute Settlement Centre (RDSC): You can either visit the Dubai Land Departmentor submit a complaint online through the Dubai REST app.
- Attend a Hearing: If a resolution is not reached amicably, the case may go to a hearing where both the tenant and landlord can present their cases under the Rent Increase Law in Dubai.
- Resolution Timeframe: Disputes are typically resolved within a few weeks, although more complex cases may take longer.
- Due process of eviction: Tenants have a right to proper legal procedures in case of eviction. Landlords cannot suddenly evict tenants—they must obtain a court order and follow the guidelines.
Key Tips for Tenants in Dubai
- Tenants in Dubai are advised to be Proactive once they receive a rent increase notice. They are to also check the RERA Rental Index to determine if the increase is justified under the Rent Increase Law in Dubai.
- Understanding the provisions of the Rent Increase Law in Dubai which will keep the tenant informed of their rights and can help them negotiate better terms or avoid unjustified rent raises.
- Always consult a professional property lawyer like us when you are unsure about the legality of a rent increase or your rights as a tenant.
Conclusion
RERA along with other regulatory bodies for real estate in Dubai are working tirelessly to ensure that rent increase is not dramatically inflated and if rents must be increased, it should not have a negative impact on the tenants and the Dubai economy in turn. We advise that tenants know their rights and also read their tenancy agreement to understand the terms stipulated. If you require an agreement review, you can contact us.
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