Questions & Answers
Is the RERA rental index calculator applicable to hotel apartments?
Dear All,
I currently have an annual rent contract with a hotel apartment in Al Barsha, Dubai. I have a separate Ejari and pay my unit's DEWA bills. My current yearly rent is the same as the rent advertised for new units in the same building.
However, my contract renewal is due in three months, and the building management has informed me that a 10% increase in rent will be applied if I wish to renew.
According to the RERA rental index calculator for the Al Barsha area, my current annual rent is already higher than the average rent, so no increase in rent is permissible.
The building management has stated that they don't fall under the RERA rental index because they're hotel apartments. I wish to verify whether they fall under RERA rent index guidelines or not. Please advise.
I am willing to open a rental dispute case and seek legal help, but I need to check if it will be valid.
Thank you!
Dear Client,
In this situation, it is essential to clarify whether your hotel apartment falls under RERA's jurisdiction for rent increases.
Generally, RERA regulations apply to residential properties, and if your hotel apartment is considered a serviced or hotel apartment, it may not be subject to the same rules.
You should first review your rental contract and any clauses about rent regulation or dispute resolution.
For more details, contact us at [-----------].
Jui Dongare
Senior Legal Manager
MBG Legal Services
We understand your situation. We will help you with this matter. The RERA rent index determines the maximum allowable rent increase based on average rent increases in specific areas.
If your current rent is already in line with or higher than the average rent in your building, the landlord cannot impose a rent increase.
Kindly share your WhatsApp number so we can discuss this further.
Hello,
According to UAE law, all rental contracts in Dubai fall under the jurisdiction of the Real Estate Regulatory Agency (RERA).
This includes hotel apartments, as they are considered residential units. Therefore, the building management cannot apply a rent increase that is higher than the RERA rental index for your area.
You can file a complaint with RERA if the building management insists on increasing your rent above the RERA rental index.
You can also seek legal advice and assistance to help you with the process. It is important to note that any rent increase must be agreed upon by both parties and cannot be imposed unilaterally by the landlord.
In addition, it is important to review your rental contract to see if any clauses allow for a rent increase. If there are no such clauses, then the building management cannot increase your rent without your consent.
I hope this information helps. If you have any further questions, please do not hesitate to ask.
Warm Regards,
