Q: I'm a landlord looking to renew my tenant's contract. Am I eligible to increase the rental amount to a maximum of 20% or is the valuation not applicable? A: If the property is in Dubai, the valuation is applicable, but the percentage increase depends on the current rent, and on the valuation…

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Can the landlord increase the rent if the property valuation allows an increase of 20%?

I'm a landlord looking to renew my tenant's contract. I had done a property valuation and the amount stated is higher than the current rent.

Am I eligible to increase the rental amount to a maximum of 20% or is the valuation not applicable?

متميز

أحمد أميري

أميري محامون ومستشارون قانونيون

دردشة

توظيف

اجتماع

24 Jan 2024, 08:18

If the property is in Dubai, the valuation is applicable, but the percentage increase depends on the current rent, and on the valuation.

It may be 20% and it may be less.

24 Jan 2024, 08:23

Yes, the property is in Dubai.

The current rent is 51% less than the average market rent so I have been told I can increase to a maximum of 20%.

Does that sound correct?

And is the valuation applicable to my existing tenant?

24 Jan 2024, 08:28

Yes, you are entitled to a 20% increase, with the current tenant, but you have to send him a notice 3 months before the contract expires.

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متميز

عبد الواحد شريف

دار الحقوق للاستشارات القانونية

دردشة

توظيف

اجتماع

24 Jan 2024, 08:53

Dear Client,

Thanks for your question, I hope you are doing well. I will definitely assist you in this matter.

In the UAE, rental increases are subject to regulations set by the Real Estate Regulatory Authority (RERA) of the respective emirate.

The maximum allowable increase was typically capped at 20% of the existing rent. To determine if you can increase the rental amount based on a property valuation, contact RERA for guidance specific to your situation.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will definitely be happy to help you.

Thanks & Regards

ABDUL WAHIED

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