أسئلة وأجوبة
Can the landlord increase my current office contract by 19%?
My landlord sent me an email to renew the current office contract with a 19% rent increase.
Our office is in Business Bay and he mentioned in the email that the price is still reasonable knowing that the offices in the same building with the same area size are more expensive.
My question: Is that legal to increase the rent by more than 10%?
Dear questioner,
According to Article 13 of Law No. 26 of 2007, as amended by Law No. 33 of 2008 regarding the regulation of the relationship between landlords and tenants of properties in Dubai, for the purpose of renewing the lease contract, the landlord and tenant may modify any of the contract conditions or review the rent allowance, whether by increase or decrease.
If they do not reach an agreement, the Rent Determination Committee shall consider the criteria stipulated in Article 9 of this law.
Article 14 of the same law states that if either party wishes to modify any of the lease conditions in accordance with Article 13 of this law, they must notify the other party of this at least ninety days before the end of the contract.
The committee, according to the law, has the right to determine the fair rent if no agreement is reached, taking into account the criteria set by the institution, the general economic situation in the Emirate, the condition of the property, the prevailing rent in the similar real estate market in the same area, and any applicable legislation in the Emirate regarding property rentals, as well as any other factors deemed appropriate by the committee.
Please note that the rent increases are as follows:
1- No increase in the rental value of the unit if its rent is less than 10% of the average rent.
2- 5% of the rental value of the unit if its rent is less than 11% to 20% of the average rent.
3- 10% of the rental value of the unit if its rent is less than 21% to 30% of the average rent.
4- 15% of the rental value of the unit if its rent is less than 31% to 40% of the average rent.
5- 20% of the rental value of the unit if its rent is less than 40% of the average rent.
Good day,
Hope all is well.
It depends on the rental index in the area. Please send me your Ejari copy by email or WhatsApp so I can check.
If so you can accept or reject and if it is not matching the index, you may reject his offer and increase it as per the index.
