Questions & Answers
Does construction and lower rent in my building justify refusing a rent increase?
Dear Sir/Madam,
The landlord is increasing the rent by 15% this year, 17% last year, and also 17% the year before.
I refused and told her it’s not fair; a 5% increase is reasonable due to the 1-year non-functional swimming pool and the construction area around it.
It has been ongoing since last year without completion (the entire area and swimming pool have been broken since last year) due to a court case between the management and the developer.
The index shows a 15% increase in the same area, but the rent in my building is much less than that.
Does the ongoing construction work, which has not been finished for a year now and may never be finished as long as the court case is open, matter? And do the prices of similar units in my building count?
Thank you in advance for your reply!
Dear Questioner,
According to UAE law, landlords are allowed to increase the rent by a maximum of 5% if the rent is below the average market rent for similar properties in the same area.
However, if the landlord can prove that the rent increase is justified due to improvements or renovations made to the property, they may be able to increase the rent by more than 5%.
In your case, if the landlord is increasing the rent by 15% without any justification, you have the right to dispute the increase and negotiate with the landlord for a fairer rent increase.
You can also file a complaint with the Rent Dispute Settlement Committee if the landlord refuses to negotiate or if you believe the increase is unjustified.
The fact that there is ongoing construction in the area and the swimming pool is not functional may be considered a valid reason for a lower rent increase.
However, this will depend on the decision of the Rent Dispute Settlement Committee.
It is also important to note that the rent index is just a guideline and landlords are not legally bound to follow it.
The rent for similar units in your building may also be taken into consideration by the committee when determining a fair rent increase.
In conclusion, you have the right to dispute the rent increase and negotiate with your landlord.
If you are unable to reach a fair agreement, you can file a complaint with the Rent Dispute Settlement Committee for further assistance.
Please feel free to reach out to me via WhatsApp or phone to schedule a consultation. Together, we can discuss your options in more detail and develop a strategy to address your concerns effectively.
Dear Questioner,
The increase or decrease in the rental value varies every year according to the rental index of the Real Estate Regulatory Authority, and you have the right to reject the increase if the landlord violates the rental prices in the area surrounding the property.
Our firm offers complimentary consultations to assist you with your legal concerns, which can be conducted online in a 15-minute session.
Please contact us via email or call our offices in Dubai or Sharjah.
Jasim Al Haddad Law Firm
Legal Counsel and Consultations
Dear Questioner,
The RERA index shows a 15% increase, but it's for the area, not necessarily your specific building.
If the rent in your building is generally lower, you can use that as leverage. The best possibility is to try negotiating with the landlord for a 5% increase and try to convince him by mentioning the facts.
If you need further clarification or assistance in strengthening your points, kindly share your WhatsApp number.
Dear Questioner,
Thanks for your inquiry!
According to UAE law, landlords are allowed to increase rent by a maximum of 5% for residential properties and 7% for commercial properties, unless there is a specific agreement in the tenancy contract stating otherwise.
Therefore, the landlord's proposed increase of 15% is not in line with the law.
In addition, the fact that the construction work in the area has not been completed and is affecting the use and enjoyment of the property can be considered a valid reason to dispute the rent increase.
You can provide evidence of the ongoing construction and its impact on the property to support your argument.
Furthermore, the rent index is a guideline for rent increases and is not binding. It is possible to challenge the rent increase if the rent in your building is significantly lower than the average rent in the same area.
If you are unable to reach an agreement with your landlord, you can file a complaint with the Rent Dispute Settlement Committee at the Dubai Land Department. They will review your case and make a decision based on the evidence provided.
It is important to note that any disputes related to rent increases should be resolved through the proper legal channels and not through withholding rent payments. Failure to pay rent can result in legal action being taken against you by the landlord.
Kindly feel free to contact us via email or phone for any further inquiries.
Greetings,
