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Dubai, UAE

Can the landlord increase the rent using the DLD valuation instead of the RERA Rental Index?

My landlord is trying to increase my rent outside of the RERA Index, using a DLD valuation as the basis.

The sequence of events:

1. 90 days before my renewal, the landlord offered me a new lease with a 10% increase on my current rental

2. I challenged this by sharing the RERA rental index result, which stated there is no increase in the rental value

3. landlord decided at this point to do a DLD rental valuation

4. Last Friday, 49 days before my current lease expires, the landlord shared the valuation, which showed an increase of 21% on the rent (or looking at it another way, my current rent is 17.5% less than this current valuation)

Can the landlord do that, and what is he legally allowed to increase my rent by in this scenario?

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Laila Hamza Al Mulla Advocates and Legal Consultants
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7 Feb 2023, 08:53

In which emirate is the property located?

7 Feb 2023, 09:01

Dubai.

7 Feb 2023, 11:09

The property is not subject to any increase if its rent is not more than 10% lower than the average rent of similar properties in the same area.

An increase of 5% is allowed if the rent of the property is between 11% and 20% lower than the average rent of similar properties in the same area.

A 10% increase is allowed if the rent of the property is between 21% and 30% lower than the average rent of similar properties in the same area.

7 Feb 2023, 11:09

An increase of 15% is allowed if the rent of the property is between 31% and 40% lower than the average rent of similar properties in the same area.

An increase of 20% is allowed if the rent of the property is more than 40% less than the average rent of similar properties in the same area.

7 Feb 2023, 11:41

Hi Khaled.

Thanks for clarifying that.

I am aware of the rent increase thresholds. The issue is that the landlord is claiming the DLD valuation as the new baseline for rental increase (over the current RERA Index).

And in accordance with some articles I have read, the valuation can take precedence, and the landlord can increase the rent to this amount.

Is this interpretation correct?

7 Feb 2023, 12:13

The link does not open you can copy the article and share it with us.

7 Feb 2023, 12:21

The same article was on "-----------" website.

7 Feb 2023, 12:32

Is the contract registered on the Ejari system?

7 Feb 2023, 13:03

Yes.

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Shamsa Albedwawi Advocates & Legal Consultants
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7 Feb 2023, 09:45

Hi P.,

The landlord cannot increase the rent using the DLD valuation report. He has to abide by the Rental Index.

8 Feb 2023, 05:31

Hi.

This is not what DLD has told me, and it is suggested that the rental valuation report is a basis for determining rent.

8 Feb 2023, 06:04

It is advisable you visit the RDC and tell them you need to renew the contract, they renew the contract in accordance with RERA and open the offer and deposit.

This is the general practice and is in accordance with the law.

8 Feb 2023, 10:33

Is that the rental dispute centre? is that not the last resort in this case?

8 Feb 2023, 10:40

Yes, its is rental dispute center and that's the procedure which a tenant has to follow.

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Maryam Alyassi Advocates and Legal Consultants
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8 Feb 2023, 08:22

Hi,

Good day!

If there is a disparity between RERA rental Index and DLD rental valuation and accordingly the parties to the tenancy have a dispute, the RDC needs to settle the dispute (On the question of whether a rental increase is allowed or not).

The RDC would consider multiple factors while deciding the dispute.

For further assistance, kindly contact us by phone or email.

Best regards.

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Mohamed Bakheet Advocates & Legal Consultants
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10 Feb 2023, 09:08

You do not pay an increase, and you have the right to renew the rent at the same value as before.

To help with that, contact us via phone.

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