Questions & Answers
Is the RERA Index Calculator the sole source for determining rent increases?
Dear Sir/Madam,
I reside in a Dubai community, and my tenancy renewal is approximately 95 days away.
The landlord is proposing a 15% rent increase, primarily based on rents listed on propertyfinder.ae, claiming that my current rent is 25% below market rates.
However, the RERA Rental Index indicates "no increase in the rental value" as my rent is at the top of the quoted range, prompting me to reject the proposed increase.
The real estate broker he hired at the time of my move-in recently contacted me, serving as an intermediary, mentioning that he would conduct a DLD valuation, likely resulting in a higher value.
However, he is attempting to negotiate first, considering the cost of around 2500 AED.
If we were to dispute, is the RERA Index Calculator the sole authoritative source for determining rent increases?
Additionally, if the DLD valuation is accepted, what is the potential maximum increase?
Dear Client,
Thanks for your question! I hope you are doing well. I will assist you in this matter.
The RERA Rental Index Calculator is an official source used to determine rent increases in Dubai, and it is often considered the primary reference for rental rate adjustments.
If there's a dispute, authorities typically rely on this index.
However, if your landlord opts for a DLD (Dubai Land Department) valuation, it's essential to understand that it can vary.
DLD valuations may consider factors such as the property's condition, location, and amenities. The specific increase amount, if any, resulting from a DLD valuation would depend on these factors.
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 be happy to help you.
Thanks & Regards,
ABDUL WAHIED
Dear Questioner,
According to the DLD evaluation, if the rent is 10% less than the market value, there can be no increase.
If the rent is 11-20% lower than the market value, the maximum increase may be up to 5%.
If the rent is 21-30% lower than the market value, the maximum increase may be up to 10%.
If the rent is 31-40% lower than the market value, the maximum increase may be up to 15%.
If the rent is less than 40% of the market value, the maximum increase may be up to 20%.
Dear questioner,
It is not permissible to increase the rental fee or amend any of the terms of the rental contract except after the end of two years from the date the rental relationship first began.
If you need guidance or explanation, kindly contact me via phone or email.
I hope this message finds you well.
Thank you for reaching out with your inquiry regarding the proposed rent increase for your tenancy renewal.
I understand your concerns about the significant increase, and it's commendable that you are being proactive in seeking clarification.
In Dubai, the Real Estate Regulatory Agency (RERA) Rental Index is indeed a crucial reference point for determining fair rental values.
However, it's essential to note that the DLD valuation is another method used to assess property values.
While the RERA Rental Index provides a guideline, it's not the only factor that can be considered in the event of a dispute.
DLD valuations may take into account various factors, including the property's condition, location, and amenities. It's not uncommon for DLD valuations to differ from the RERA Index.
If the DLD valuation is accepted, the increase could vary based on these factors.
Unfortunately, I cannot provide an exact figure without more specific details about your property. If negotiations are ongoing, it would be prudent to request a breakdown of the valuation factors from the broker to better understand the proposed increase.
In the event of a dispute, you have rights as a tenant, and it may be beneficial to explore mediation or legal avenues.
I would be more than happy to discuss your case further and provide personalized advice based on the details of your situation.
Please feel free to reach out to me via WhatsApp or phone to schedule a consultation.
I'm here to assist you in navigating this matter and ensuring your rights are upheld.
Best regards,
Suhail Rana
When a dispute arises, the RERA index will prevail over than valuation certificate.
Moreover, it will be the discretion of the judge.
If the landlord is not accepting the rent, you have more options.
If you need further clarification, we can arrange a legal consultation session for a charge of 28$.
Share your WhatsApp number if you want to go with the services.
