Q: Our unit is currently rented at a lower price. According to the market, it is 45% less. The tenant is only willing to pay 5% more… A: While the market value might suggest a higher increase, the RERA index prevails legally. It's important to adhere to the legal limits set by the index…

Dubai, UAE

109

How to deal with a tenant who is not willing to pay market rent?

Dear Sir/Madam,

Our unit is currently rented at a lower price. According to the market, it is 45% less, and according to the RERA Rental Index, it is 13% less.

The RERA Rental Index allows for a maximum increase of 5%, but the current market trend indicates that we should at least increase the rent by 15%, which is the minimum rent for similar units.

Can we increase the rent according to the market value, as the tenant is only willing to pay 5% more based on the RERA Rental Index?

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Abdul Wahied Mohammad Sharief

Dar Al Haqooq Legal Consultancy

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19 Aug 2023, 19:52

Dear Client,

Thanks for your question! I hope you are doing well. I will definitely assist you in this matter.

In Dubai, rental increases are typically regulated by the RERA rental index.

While the market value might suggest a higher increase, the RERA index prevails legally. It's important to adhere to the legal limits set by the index to avoid potential issues.

For any further legal assistance, you can WhatsApp us. We have an extensive team of knowledgeable and experienced lawyers to provide the legal assistance you need.

We will definitely be happy to help you.

Thanks & Regards,

ABDUL WAHIED

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