Tackling Unjust Rent Hikes in Dubai
How to Negotiate Against Unfair Rent Hikes in Dubai?
Rent increases in Dubai often create tension between tenants and landlords. However, the city's regulated real estate market and modern tools like the Dubai Smart Rental Index provide tenants with the opportunity to be well-informed about market conditions and to address unfair increases. If you live in Dubai and your rent has been raised, here is a detailed guide on how to navigate this situation.
Rules for Rent Increase in Dubai
In Dubai, the extent of rent increases is regulated by Decree No. (43) of 2013, which states that a rent increase is only possible if the current rent is lower than the average rent of similar properties in the area. The maximum allowable increase is as follows:
0% increase if the current rent is up to 10% below the average.
5% increase if the rent is 11-20% below the average.
10% increase if the rent is 21-30% below the average.
15% increase if the rent is 31-40% below the average.
20% increase if the rent is more than 40% below the average.
The average rent value is determined by the Dubai Rent Index created and updated by the Real Estate Regulatory Agency (RERA). This index essentially determines how much a given property's rent deviates from the market average, and based on this information, it can be decided whether the landlord is entitled to increase the rent.
How to Use the Dubai Smart Rental Index?
If you've received a notice about a rent increase, the first step is to check the Dubai Rent Index data. This online tool allows you to compare your own rent with the average rent of similar properties in the area. If the index indicates that your rent does not deviate significantly from, or is even higher than, the average, then the landlord has no right to increase the rent.
Check the Index: Access the Dubai Rent Index through the RERA website, where you can input your property's type, size, and location to find out the average rent in your area.
Calculate the Difference: If your rent is lower than the average, you can determine based on the rules above how much of an increase the landlord can apply.
Negotiate with the Landlord: If the increase does not comply with the rules, contact the landlord and present the Rent Index data. In many cases, landlords are willing to negotiate when they see that the tenant is aware of the legal framework.
What if You Disagree with the Landlord?
If the landlord refuses to withdraw from an unfair increase, you can seek help from the Rental Dispute Centre. The center will review the case and decide on a fair rent based on the Rent Index. However, it is important for tenants to also be aware of their legal obligations:
The landlord must notify the tenant of the rent increase at least 90 days before the contract expires.
If the tenant does not agree with the increase, they must initiate negotiations or mediation before the contract expires.
Frequently Asked Questions
1. What happens if the landlord does not provide 90 days' notice?
If the landlord does not adhere to the 90-day notice period, they cannot increase the rent and the contract automatically renews under the previous terms.
2. Which Rent Index is applicable if my contract expires in 2025?
If your contract expires before 2025, the previous index applies. If it expires in 2025 or later, the new index is used to determine the rent.
3. What can I do if the landlord refuses to negotiate?
In such cases, you can turn to the Rental Dispute Centre, where experts will assist in determining a fair rent.
Conclusion
Rent increases in Dubai are strictly regulated, and tenants have several tools available to protect themselves against unfair increases. Using the Dubai Rent Index and understanding the legal framework is crucial for successfully negotiating with the landlord or, if necessary, enforcing your rights legally. Remember, being informed and proactive can often prevent unnecessary conflicts and help ensure you live under fair conditions in Dubai.
