Can Landlords Increase Rent in Dubai?

• Rights
• Rent Increase Percentage
• FAQs

Dubai has witnessed an increase in property rents, as per the report by dubizzle. The overall rents in the real estate sector accounted for a rise of more than 20%. With such a rise, landlords can increase the rent in Dubai. That said, they must follow the Dubai rent increase regulations by RERA.

Before the tenants sign the contract with the landlord, they must read the terms and conditions properly. It will help determine several questions. For instance, can landlords increase rent in Dubai? How much can they increase? 

Since tenants must know their rights, let’s go through the laws and regulations governing the rental price hike in Dubai.

DO LANDLORDS HAVE THE RIGHT TO INCREASE RENT SUDDENLY?

According to the RERA tenancy laws in Dubai, landlords can increase rent. Plus, the rent increases in Dubai must be according to the rules set by RERA. 

If the landlords want to increase the rent, they must send a 90-day prior notice to the tenants. Additionally, they can’t cancel the contract or evict the tenants from the property without providing a 90-day notice. 

Landlords have the right to increase the rent, but that must be according to the rental index. Here’s the index on how much rent landlords can increase in Dubai.

How Much Rent Can Landlords Increase in Dubai?

Landlords can increase rent according to the RERA rental index calculator. It has the following conditions to demand a rental increase:

• No change in rent value if it is equal to or 10% less than the average rent value
• 5% increase if the rent is less than the average index by 11 to 20 percent
• 10% increase if the rent is less than 21 to 30 percent of the average index
• 15% increase if the rent is less than the average index by 31 to 40 percent
• 20% rent increase if it is more than 40 percent less than the rental index

For instance, if the tenant lives in a one-bedroom rental apartment in Business Bay and has a current rent of AED 50,000, the landlord can increase the rent. Considering the average rent of a 1-bed apartment in Business Bay is AED 67,000 to AED 81,000, as per the rent index, the current rent of AED 50,000 is around 31 to 40 percent lower. 

In this case, landlords can increase the rent by 15%, which is AED 7,500 more than the current rent. Tenants and landlords can determine the increased value according to the rental index.

Upon receiving the notice, tenants can refuse the rental increase within thirty days of the landlord’s notice. Besides, tenants can claim their rights and report the case to the Rental Dispute Committee (RDC) if the landlord demands increased rent before two years.

FAQs

CAN LANDLORDS INCREASE RENT EVERY YEAR?

No, landlords can’t increase the rent every year. Renters can report a sudden increase in rent in Dubai to RERA according to the rights of tenants in Dubai.

WHAT IS THE MAXIMUM A LANDLORD CAN INCREASE RENT IN DUBAI?

Landlords can increase the rent up to 20% if the current rent is 40% less than the average market value. You can determine the average market value as per the RERA rental index.

HOW OFTEN CAN A LANDLORD INCREASE RENT IN DUBAI?

Landlords can increase the rent on the contract renewal. Otherwise, they can send notice 90 days prior after the tenancy contract is two years old.

These were all the conditions and laws on rent increase. Can landlords increase the rent suddenly in Dubai? No, they need to provide a 90-day notice. Moreover, it is the legal right of a landlord in Dubai to increase rent if it is less than the average market value.

Therefore, when you rent a property in Dubai, follow the laws and regulations and learn about your rights. Besides, you can follow the tips to maintain a good tenant-landlord relationship.

Stay tuned to the dubizzle real estate blog to learn about your rights and responsibilities when renting a property.