أسئلة وأجوبة
Can the landlord increase rent according to the valuation certificate?
Hello Everyone,
I know it has been discussed quite a few times; however, it's not clear. Can the landlord increase rent according to the valuation certificate?
My current rent is AED 71,400. When I check the RERA Rental Index, below is the text being shown:
When renewing real property lease contracts, the maximum percentage of rent increase for real property in the Emirate of Dubai is 5% of the rent of real property unit, where the rent is 11% to 20% less than the average rental value of similar units.
The rent for a two-bedroom apartment in Port Saeed ranges from 72,000 to 88,000 AED per year (excluding water, electricity, or any other fees). The increase amounts to 3,570 AED per year.
The landlord's valuation certificate states AED 85,000.
Therefore, my question is whether the rent can be raised to AED 85,000 using the valuation certificate, or if the increase should be limited to 5% since the valuation falls between 11-20%.
Dear Questioner,
If there is a property appraisal certificate, forget about the rent index, because the appraisal certificate is stronger.
According to the law, if the rent is less than the rent specified in the appraisal certificate by a percentage between 11 and 20%, the landlord is entitled to increase it by 5%.
In your case, the difference is 17%, so the landlord is entitled to a 5% increase, making the rent 74,970 dirhams.
Dear Questioner,
The Dubai Rent Index and the regulations regarding rent increases provide guidelines for landlords and tenants to follow when renewing lease contracts.
Based on the information you provided:
1. The maximum percentage of rent increase allowed for properties in Dubai is 5% of the rent of the property unit, where the rent is 11% to 20% less than the average rental value of similar units.
2. The Rent Index indicates that the rent for a two-bedroom apartment in Port Saeed is in the range of AED 72,000 to AED 88,000 per year.
3. Your current rent is AED 71,400 per year.
4. The landlord's valuation certificate states AED 85,000.
Given this information, it seems that your current rent falls within the range of rental values indicated by the Rent Index for similar units in Port Saeed. Therefore, the maximum permissible rent increase would be 5% of your current rent, which would amount to AED 3,570 per year.
The landlord's valuation certificate stating AED 85,000 does not necessarily override the guidelines provided by the Rent Index.
The valuation certificate may reflect the landlord's assessment of the property's rental value, but it does not automatically entitle the landlord to increase the rent to that amount.
It's essential to communicate with your landlord and refer to the Rent Index and applicable regulations when discussing any proposed rent increase.
If you believe that the proposed rent increase exceeds the permissible limit or is unjustified, you may consider seeking guidance from the Real Estate Regulatory Authority (RERA) or consulting with a legal advisor specializing in rental disputes in Dubai.
They can provide you with specific advice based on the details of your situation and help you understand your rights as a tenant under Dubai's rental regulations.
Dear Questioner,
Thank you for reaching out with your question regarding rent increases in Dubai!
Based on the RERA Rental Index and the information you've provided, the landlord cannot increase the rent to AED 85,000 solely based on the valuation certificate if it exceeds the permissible limit set by RERA.
According to the index, the maximum rent increase allowed is 5% if your current rent is 11% to 20% less than the average rental value of similar units.
Given that your current rent is AED 71,400 and the average rental value for similar units ranges from AED 72,000 to AED 88,000, your situation indeed falls within the 11% to 20% range.
Therefore, the increase should be limited to 5% of your current rent, which would be AED 3,570 per year, bringing your new rent to AED 74,970.
If your landlord is insisting on increasing the rent to AED 85,000, it may be beyond what is legally permissible under the current regulations.
I recommend discussing this directly with your landlord and referencing the RERA guidelines.
If you need further assistance or legal representation to resolve this issue, please feel free to reach out to me. You can contact me via WhatsApp or phone at [------].
The landlord cannot increase the rent to this amount.
You can renew the lease according to the increase stipulated in RERA, which is only 5%.
To contact us, please call: [------].
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 rent by a maximum of 5% of the current rent, as long as it falls within the range of 11-20% less than the average rental value of similar units.
In your case, the current rent of AED 71,400 falls within this range, so the landlord can only increase the rent by 5%, which would be AED 3,570 per year.
The landlord cannot use the valuation certificate to increase the rent to AED 85,000, as this would be more than the allowed 5% increase.
Kindly feel free to contact us at [-----] for further inquiry.
Greetings,
Dear questioner,
The RERA index shall be followed and it will prevail unless the parties to the contract agree to a rent increase according to the valuation certificate.
