When renewing a housing contract, it is vital to know if the landlord has raised the rent illegally. There are some restrictions on rent increases in Dubai, stating that landlords can only increase rent once a year and must give tenants 90 days' notice. In addition, the extent of the increase must comply with the rules, with the exact cap depending on the difference between the current rent and the market value:
- If the rent is 11%-20% below market value, the maximum increase is 5%.
- If the rent is below 21%-30%, the maximum increase is 10%.
- Below 31%-40%, the maximum increase is 15%.
- Below 40% or more, the maximum increase is 20%.
However, a landlord may not increase the rent if it is only 10% below market value.
In order to check the rate of increase in the rent of a house, one can use the RERA Rent Calculator, which is a free tool available on the Dubai Land Department's website. The steps to use the calculator are as follows:
1. Open the RERA Rental Index.
2. Select the type of property, such as residential, commercial, industrial or staff quarters. For tenants, select 'Residential'. 3.
3. Fill in the details including contract end date, property type (apartment, villa), size, number of bedrooms and current rent. 4.
4. Click "Calculate" to see a guide to rent increases in your area, comparable rent prices for specific property types and maximum rent increases based on criteria.
If you find that your landlord is proposing a rent increase that exceeds the RERA limit, you can take the following steps to resolve the situation:
1. contact the Dubai Land Department's Rental Dispute Center at (800) 4488 to report the issue and seek guidance.
2. consider mediation through the Rental Dispute Resolution Center to help you reach a fair settlement with your landlord.
3. if mediation is unsuccessful, file a formal complaint with the Rental Dispute Resolution Center in Dubai.