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Can I increase the rent as per rent valuation Certificate if RERA does not allow it?

Hi,

I am a landlord and getting 105k as rent.

The renewal is coming and the RERA index shows no increase but I got RVC which says the rental value is AED 150k.

How much can I ask for an increase from the tenant?

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Dar Al Haqooq Legal Consultancy
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21 Sep 2023, 09:24

Dear Client,

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

If the RERA rental index shows no increase but you have received a Rental Value Certificate (RVC) indicating a rental value of 150k AED, you can typically ask for an increase in line with the RVC.

In this case, you may consider proposing a rent increase up to the 150k AED rental value indicated in the certificate.

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

Al Kaitoob Advocates & Legal Consultants
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21 Sep 2023, 10:18

You can increase a maximum of 20%.

21 Sep 2023, 10:48

thank you for your reply, is there any clause of RERA or DLD that I can quote while asking for a rent increase from the tenant because they simply still go as per the RERA index?

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KHE Legal Consultancy
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21 Sep 2023, 13:37

You can increase the rent according to the RERA index. When a dispute arises, the index will prevail over RVC.

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Shamsa Albedwawi Advocates & Legal Consultants
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25 Sep 2023, 05:09

Hi,

Pursuant to your query, the rental increase has to be in accordance to the percentage of rent increase set by RERA, the overall economic situation in the Emirate, the condition of the real property and the average rent of similar property in similar property market within the same area.

If you have reason to believe that the RERA calculation is not updated, you can file a complaint in the RDC based on that valuation report.

However, it depends on the judge if he/she will consider it as per the valuation report or rental index.

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