Questions & Answers
Is a landlord allowed to increase rent by 40% in Dubai?
Dear Sir/Madam,
I received a rental increase letter from my landlord in Dubai with an increase of more than 40%. He provided a rental revaluation certificate as support.
My current rent for a 1BHK is 42,000 AED. According to the rental index, there is a 2,000 AED hike, while my landlord is asking for an 18,000 AED increase.
May I know the maximum rent increase?
Dear Questioner,
In any of the situations, he cannot ask you for a 40% increase. You do not have to accept or pay what he demands.
In case of a rental increase, the landlord must follow the rental index rather than the valuation certificate.
If your rent is between 31 and 40 percent below the average market rate, a maximum increase of 15 percent is allowed.
If your rent is more than 40 percent below the average market rate, a maximum increase of 20 percent is allowed.
Dear Questioner,
As per RERA, If the rental price is:
- Below 10% of the market value for the area, no increase is allowed.
- Between 11% and 20% below market value for the area, a landlord can increase by 5%.
- Between 21% and 30% below market value for the area, a landlord can increase by 10%.
- Between 31% and 40% below market value for the area, a landlord can increase rent by 15%.
- 40% or more below market value, it will attract a 20% increase in rent.
Therefore, the maximum limit of increase according to RERA is 20%.
Dear Questioner,
Try to resolve it amicably and let the landlord know that you will pay as per the rental index calculator.
