Questions & Answers
Which one prevails in case of conflict, RERA Rental Index or DLD Valuation Certificate?
Dear All,
My rent renewal is due in April 2023 and currently paying AED 143000. The RERA Rental Index calculation shows an increase of 10%.
The landlord sent a letter (90 days prior) along with a DLD valuation certificate attached stating that the rent will be increased to AED 220,000 (a 50%+ increase) based on the assessment of the property.
Are there any options available to be able to contest this sizeable increase? (RDC will state that the landlord can use the valuation certificate to increase the rent now).
Many thanks for your help.
Dear,
The landlord can not increase the unit rental price by 50% as it is against RERA guidelines.
If the unit is found to be more than 40% below the average market price, then the landlord can increase the rent by a maximum of 20% by issuing the necessary 90-day rental increase notice to the tenant.
You may contest the rental increase by submitting a complaint to RERA or first by approaching your landlord and explaining that a 50% increase is not permitted as per RERA.
If the landlord refuses to decrease the rental increase, then submit a complaint.
Regards.
