Rent Increase Law in Dubai
Rent Increase Law in Dubai the rent increase laws in Dubai is essential for both tenants and landlords. Here's a breakdown of the key aspects:
Key Regulatory Body:
- The Real Estate Regulatory Agency (RERA), part of the Dubai Land Department (DLD), oversees and regulates the rental market in Dubai.
Core Principles:
- RERA Rental Index:
- Rent increases are primarily determined by the RERA Rental Index, which provides a benchmark for market rental values in different areas of Dubai.
- This index is crucial for ensuring that rent increases are fair and in line with market conditions.
- Notice Period:
- Landlords must provide tenants with a minimum of 90 days' written notice before the lease renewal date if they intend to increase the rent.
- Rent Increase Percentages:
- The permissible rent increase depends on how much the current rent is below the market rate, as determined by the RERA Rental Index. Here's a general guideline:
- If the current rent is less than 10% below the market rate: No increase.
- If the current rent is 11%–20% below the market rate: Maximum 5% increase.
- If the current rent is 21%–30% below the market rate: Maximum 10% increase.
- If the current rent is 31%–40% below the market rate: Maximum 15% increase.
- If the current rent is more than 40% below the market rate: Maximum 20% increase.
- The permissible rent increase depends on how much the current rent is below the market rate, as determined by the RERA Rental Index. Here's a general guideline:
- Initial Rental Period:
- Generally, landlords can not increase rent within the first two years of a tenancy agreement.
Important Considerations:
- Dispute Resolution:
- If a tenant believes that a rent increase is unjustified, they can file a complaint with the Rental Dispute Settlement Centre (RDSC).
- Transparency:
- The RERA Rental Index promotes transparency in the rental market, allowing tenants to verify the validity of rent increases.
Where to find more information:
- The Dubai Land Department (DLD) and RERA websites are the official sources for accurate and up-to-date information.
By adhering to these regulations, Dubai aims to maintain a balanced and fair rental market for both landlords and tenants.
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