Questions & Answers
What is the allowed increase as per the rental index for a villa tenancy?
Here's my situation:
1. I have a tenancy for a villa that is coming up for renewal on the 1st of September
2. On the 28th of May, the landlord sent me an email stating that they want to increase the rent but did not state by how much.
3. On the 1st of June, the landlord's representative sent me an email with a "rental valuation certificate" stating that the valued rent of the property is AED 225,000
4. On the 1st of June, we checked the rental index and have found that it states that the rent for an individual five-bedroom villa is in the range of AED 231,000 to AED 260,000, whilst the rent for a complex in Jumeirah is in the range of AED 202,000 to AED 246,000
5. My tenancy for last year was AED 189,000
6. The landlord wants to increase the rent by 19% based on the valuation certificate
7. I've said to the landlord that “Decree No. 43 of 2013 Rent Increase for Real Property in the Emirates of Dubai” states that the maximum increase should be 5%. Is my understanding correct?
Hello,
As per your query, the rent is between 12.2% - 13.75 % of the rental value index (we are considering the original rent of AED 189,000)
And if we consider the rental value certificate, the rent is AED 225.00, hence the increase is 10.3%- 11.5%,
As per the law, there will be a 5% increment, if the rental percentage is from 11 -12%.
You can negotiate with the landlord to decrease the percentage and if they do not listen, then you can put a complaint in RDC.
