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The real estate agent is asking for a 26% increase. What to do?

Dear sir/madam,

The real estate agent representing the landlord sent me an email 88 days before the end of the contract asking for a 26% increase (from 56k to 70k). I refused and then they offered me 61k and I refused again.

Now (55 days before the end of the contract), they have sent me a valuation certificate that states 70k as they wanted. They said that the 61k offer is gone now as they paid to get the valuation certificate.

Should I go to RDC or accept this increase?

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Laila Hamza Al Mulla Advocates and Legal Consultants
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24 Dec 2022, 17:26

Dear questioner,

This increase is not considered unless it is sent 90 full days before the end of the contract, and therefore, the contract is renewed without an increase.

Please note that the legal opinion has been based on the details you have provided and may differ if more details are presented and we have seen the lease contract.

24 Dec 2022, 17:28

88 days will not be accepted by the judge if I am to dispute?

24 Dec 2022, 17:44

Notice of increase must be submitted 90 days before the end of the contract.

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Khalifa Bin Huwaidan Advocates & Legal Consultants
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26 Dec 2022, 06:59

Dear questioner,

Kindly note that as per UAE law, the landlord has to send notice to the tenant 90 days prior to the expiry of the tenancy contract.

Furthermore, increasing the rent by 26% is not allowed as per RERA guidelines. The maximum rental increase is 10% if the value of the unit is 21-30% below the market value.

Hence, provided the 90 days notice was given, the landlord may increase the rental price up to a maximum of 10% (AED 5,600).

You should go to the RDC if your landlord is refusing to renew the contract based on the same terms.

Please also refer to your tenancy contract for specific clauses regarding the rental increase and notice period.

Regards,

Kha advocates

Naser Almuharrami Advocates & Legal Consultants
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27 Dec 2022, 08:56

You can apply for rental dispute resolution.

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