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Dubai, UAE

Can a landlord use the same evaluation certificate to increase the rent twice?

Hello all,

I'm renting a villa in the Springs area. Last year, the landlord made an evaluation certificate in March 2023 and 90 days before renewal, the property management company informed me that based on the evaluation certificate, the landlord would increase the price by 20%, I accepted it.

Current contract from July 2023 till July 2024, rent value 160,000. In March 2024, I received an email from the landlord (92 days before renewal) that he wanted to increase rent again by 20% and attached the same certificate from March 2023 which has been used for the 2023 contract renewal.

The certificate states that validity is 1 year. So when they sent an email with a notification, the certificate was still officially valid. Can the landlord use the evaluation certificate twice to increase property rent in 2023 and then in 2024?

Why evaluation certificate is valid for 1 year if the market changes every month?

How can I check that the certificate is not "fake"?

Can the landlord use a certificate issued in March 2023 to increase the rent for the property, considering that the contract renewal date is in July 2024?

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KHE Legal Consultancy
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19 Apr 2024, 05:26

Dear questioner,

As per Dubai Rental Laws, rent increases shall be based on the RERA index, not on the evaluation certificate.

Please check the RERA calculator with RDC. The chances of further rent increases according to RERA are low since you have already accepted a 20% increase, which is the maximum for the period.

19 Apr 2024, 05:26

If you need further clarification, please share your WhatsApp number.

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Hend Humaid Alnuaimi Advocates & Legal Consultants
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19 Apr 2024, 05:34

Dear Questioner,

According to UAE law, landlords are allowed to increase the rent by a maximum of 20% if the rental value is below the average market rate.

However, this increase can only be done once every year and must be based on a valid evaluation certificate.

In your case, it seems that your landlord has used the same evaluation certificate twice to increase the rent in 2023 and 2024.

This is not allowed under UAE law as the evaluation certificate is only valid for one year. The landlord cannot use the same certificate to increase the rent in consecutive years.

To ensure that the evaluation certificate is not fake, you can request a copy of the certificate from the landlord and verify it with the relevant authorities.

You can also check the average market rate for similar properties in your area to see if the increase is justified.

If you believe that the landlord is not following the proper procedures for rent increases, you can file a complaint with the Rental Dispute Settlement Center (RDSC) in your emirate.

They will investigate the matter and make a decision based on UAE laws and regulations.

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Al Fahad Legal Consulting
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19 Apr 2024, 06:34

Dear Questioner,

Thanks for your inquiry!

According to UAE law, a landlord can only increase the rent once every 12 months, and the increase cannot exceed 20% of the current rent.

This means that your landlord cannot use the same evaluation certificate to increase the rent in both 2023 and 2024.

The evaluation certificate is only valid for one year, so your landlord cannot use it again after it has expired.

To ensure that the evaluation certificate is not fake, you can request a copy of the certificate from the landlord or the property management company.

You can also check with the Real Estate Regulatory Agency (RERA) to verify the authenticity of the certificate.

If you believe that your landlord is not following the proper procedures for rent increases, you can file a complaint with RERA. They will investigate the matter and take appropriate action if necessary.

It is important to note that if you have signed a contract with the rent increase clause, you are legally bound to pay the increased rent.

However, if you believe that the increase is unreasonable or not in line with the market rates, you can negotiate with your landlord or seek legal advice from us as a lawyer who specializes in UAE law.

Kindly do not hesitate to contact us via phone or email.

Regards,

Skills Legal Consultants
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19 Apr 2024, 08:04

The certificate is for one time, even if the certification validity is a year.

If you do not receive a new certificate for the next year, you do not have to accept the new increase.

There are standards and laws that must be followed for the rental increase.

Kindly contact us for further assistance.

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Ibrahim Al Banna Advocates & Legal Consultants
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19 Apr 2024, 22:21

Thank you for reaching out with your inquiry regarding the evaluation certificate and the rent increase for your villa in the Springs area. I understand your concerns, and I'm here to provide you with clarity on the matter.

Firstly, regarding the landlord's use of the evaluation certificate for two consecutive rent increases, it's important to note that the validity of the certificate for one year does not necessarily restrict its use to a single rent increase within that period.

However, the applicability of the certificate for multiple rent increases within the same rental term may be subject to the terms outlined in your tenancy agreement and relevant local regulations.

To address your concern about the validity of the certificate and its authenticity, there are steps you can take to ensure its legitimacy.

You may request the landlord or the property management company to provide you with additional documentation or verification of the certificate from the evaluating authority.

Additionally, you can consult with legal professionals or authorities in Dubai to confirm the validity of the certificate and its compliance with local regulations.

Regarding the fluctuating market conditions and the one-year validity of the evaluation certificate, it's important to recognize that while market conditions may change over time, evaluation certificates serve as a reference point for determining rental values based on prevailing market conditions at the time of evaluation.

However, tenants and landlords may negotiate rent adjustments based on significant changes in market conditions or other relevant factors, subject to the terms of the tenancy agreement and applicable laws.

To discuss your specific situation further and explore potential courses of action, I would recommend scheduling a consultation.

Please feel free to reach out to me via WhatsApp or phone. I'm here to assist you with any additional questions you may have and provide you with personalized legal guidance.

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