Tenants: Fight Unjust Rent Increases Effectively
What Can Tenants Do If Landlords Raise Rent Excessively?
The increase in rental fees is always a sensitive topic between tenants and landlords, especially in a dynamically developing city like Dubai. To regulate the real estate market, Dubai has implemented specific laws that set the conditions and limits for rent increases. These rules help protect tenants' rights and maintain fair market competition.
Are There Regulations on Rent Increases?
Yes, Dubai strictly regulates rent increases based on Decree No. 43 of 2013. This decree outlines the maximum rent increase according to the difference between the current rent and the average rent of similar properties in the area:
- No increase if the rent is up to 10% below the average rent.
- 5% increase if the rent is 11-20% below the average rent.
- 10% increase if the rent is 21-30% below the average rent.
- 15% increase if the rent is 31-40% below the average rent.
- 20% increase if the rent is more than 40% below the average rent.
The average rents are determined by the Dubai Rent Index, maintained by the Real Estate Regulatory Agency (RERA).
How Does the Rent Increase Process Work?
1. Written Notice: If the landlord wants to increase the rent, they must notify the tenant in writing at least 90 days before the expiration of the lease, unless otherwise agreed.
2. Agreement or Dispute: The landlord and tenant can agree on new rental terms, including any increase. If no agreement is reached, the Rental Dispute Centre (RDC) may decide on a fair rent.
3. RERA Guidelines: The increase is valid only if it complies with RERA rules and the current economic conditions.
What Can Tenants Do If They Experience Unfair Rent Increases?
If a tenant feels that the landlord has unjustifiably raised the rent, they can take the following steps:
1. Communication with the Landlord: It is advisable to first negotiate directly with the landlord to avoid legal proceedings.
2. Filing a Complaint to the RDC: If the dispute cannot be resolved, the tenant can file a complaint with the RDC, which objectively reviews the case considering the RERA index and the real estate market situation.
3. Documentation: It is crucial to have all documentation, such as notices and the lease agreement, ready during the proceedings.
What Rights Do Tenants Have?
Dubai's legal regulations specifically protect tenants:
- The landlord cannot increase the rent beyond the amount determined by RERA guidelines.
- Tenants must be notified of any changes 90 days before the contract expires.
- By turning to the RDC, tenants receive legal protection, and decisions are fair and transparent.
Why Is the Dubai Rent Index Important?
The Dubai Rent Index ensures that rent increases are fair and reflect the market situation. The index makes it clear for both tenants and landlords what level of increase is acceptable.
Final Thoughts
Dubai strives for a balance between protecting tenant rights and respecting landlords' economic interests. RERA guidelines and the Rental Dispute Centre provide legal protection for both parties. If you, as a tenant, feel that a landlord is acting unfairly, it is important to be aware of your rights and, if necessary, turn to the relevant authorities.
