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جميع المدن, الإمارات العربية المتحدة

Can I increase the rent more than the RERA calculator shows?

Hello,

I'm a new landlord and the apartment has tenants.

Their contract expires at the end of June. Can I increase the rent more than the RERA calculator shows?

Because the market price for the rent now is more than 40%.

Please help me with some advice.

Thank you!

متميز
كي إتش إي للاستشارات القانونية
دردشة توظيف
اجتماع
17 May 2024, 04:44

Hello,

According to Dubai rental law, rents are guided by the RERA calculator.

The calculator determines the permissible hike based on the current rent's difference from the market value.

While exceeding that on your own isn't possible, you can discuss higher rent with your tenants if they are open to it.

For further clarification please share your Whatsapp number.

17 May 2024, 12:12

I understand, thank you!

متميز
الفهد للاستشارات القانونية
دردشة توظيف
اجتماع
17 May 2024, 05:15

Dear Questioner,

Thanks for your inquiry!

Regarding the above, we would like to inform you that, according to UAE law, landlords are allowed to increase the rent by a maximum of 20% if the current rent is below the average market rent for similar properties in the same area.

However, if the current rent is already at or above the average market rent, landlords are not allowed to increase the rent.

In your case, if the current rent is below the average market rent by more than 40%, you may be able to increase the rent by up to 20%.

However, it is important to note that any rent increase must be agreed upon by both parties and should be stated in the tenancy contract.

It is recommended to consult with us as a legal professional or the Real Estate Regulatory Agency (RERA) for specific guidance on your situation.

Kindly feel free to contact us by phone or email.

Greetings,

17 May 2024, 18:02

Ok, thank you!

19 May 2024, 05:52

Always welcome!

19 May 2024, 05:52

Have a great day!

متميز
علوي الجابري للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
17 May 2024, 06:03

No, you can't increase more than the RERA index.

17 May 2024, 06:57

I understand, thank you!

متميز
جاسم علي الحداد للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
17 May 2024, 06:37

Dear.

If it is agreed with the tenant to increase the rent by 40%, then there is no problem.

However, if the tenant rejects this increase, he has the right to demand that you comply with the RERA index through the court.

In all cases, you must notify the tenant of your desire for an increase at least 90 days before the end of the contract, in accordance with the law.

17 May 2024, 06:56

Hello,

Thank you for your answer. But the old owner sent them by email 90 days before the 10% Rent increase notice.

I'm the new owner only for 3 weeks. So in this case for me was impossible to send notice 90 days before. What we can do in this situation?

Thanks!

17 May 2024, 07:05

In this case, the increase will be in accordance with the old owner’s notification by (10%) only.

If anything else is required, don’t hesitate to contact us via email or call our offices in Dubai or Sharjah.

Jasim Al Haddad Law Firm Legal Counsel and Consultations

وفاء علي الحوسني للمحاماة والاستشارات القانونية
دردشة
توظيف
اجتماع
17 May 2024, 07:02

You can send a warning to the tenant 90 days before the end of the lease to request an amendment to any clause in the contract, including an increase in the rent, but you must prove that the increase in that area exceeds the RERA calculator, and in this case you can increase the rent.

To obtain free legal advice that includes all the details, contact our office on WhatsApp - call or leave your number and we will contact you immediately.

Wafaa Al Hosani Advocates and Legal Consultations

17 May 2024, 18:04

Ok, thank you!

متميز
ليكس ريسولفو للاستشارات
دردشة توظيف
اجتماع
17 May 2024, 07:18

Hi.

You are not able to increase rent by 40% to meet the current market value.

This would be in breach of RERA rules. You are however able to increase rent by 20%. We recommend that you get the notice to increase rent professionally drafted as there are certain procedures to follow.

We would be happy to help you do this. If you need assistance, reach out to us on the phone

17 May 2024, 18:05

Ok, thank you!

متميز
أميري محامون ومستشارون قانونيون
دردشة توظيف
اجتماع
17 May 2024, 11:18

If you are sure of what you're saying, request a property valuation certificate. This certificate takes precedence over the rent index, so consider the next step thereafter.

17 May 2024, 12:11

Hello!

Ok, how can I request a property valuation?

Will this certificate be valid if the agent of the old owner sends them an email with a 10% rent increase 90 days before the contract expires?

Or will the certificate be valid if the contract expires at the end of June?

Because I don't have 90 days before to send the increase notification.

Thank you!

17 May 2024, 13:07

You can request the certificate from the offices dealing with the Land Department, and you can search for them on Google.

You can also send the rent increase notice now and before obtaining the certificate.

22 May 2024, 14:30

Hi!

How can I contact you?

22 May 2024, 18:16

By messaging on this WhatsApp number [-------].

متميز
إبراهيم البنا للمحاماة والاستشارات القانونية
دردشة توظيف
اجتماع
17 May 2024, 11:47

Thank you for reaching out with your question regarding your rental property.

As a landlord in Dubai, you must adhere to the regulations set forth by the Real Estate Regulatory Agency (RERA).

According to RERA, rent increases are regulated and should align with the guidelines provided by the RERA Rent Calculator.

Even if the market prices have increased significantly, you cannot increase the rent beyond the limits prescribed by the RERA calculator.

However, there are legal ways to address the discrepancy between the current market value and the RERA-regulated rent.

For example, you could negotiate with the tenants or wait until the end of the tenancy contract to establish a new rental rate for future tenants.

I would be happy to provide you with detailed advice and strategies to manage your property effectively within the legal framework.

Please feel free to reach out to me directly via WhatsApp or phone at to discuss your situation in more detail. Alternatively, you can email me.

17 May 2024, 12:25

Ok, thank you!

متميز
إم بي سي ليجل كونسولتانتس
دردشة توظيف
اجتماع
20 May 2024, 08:03

Hello,

I'm Sakina Dickenwala from MBC Legal.

20 May 2024, 08:05

Under the law, landlords can increase the rent by up to the one mentioned on the RERA index.

If the current rent is at or above the market average, no increase is allowed.

In your case, if the market rent has risen by over 40%, you may raise the rent only as per the RERA index.

However, any increase must be mutually agreed upon and documented in the tenancy contract.

20 May 2024, 08:05

We can have a quick call to discuss further. I am available on phone [----] and email [----].

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