Questions & Answers
Agreed on rent with previous management; can new management demand increase?
Dear lawyers,
I am a tenant in Dubai. My current contract will expire on 24-01-25. The real estate agent gave me the renewal paper on October 15 with a 5% increase in rent, as per the RERA index, which I accepted.
However, after a few days, the building management changed, and the new real estate team sent me a new contract on November 12 with more than a 10% rent increase (less than 90 days before the contract expires).
When I inquired with them, they told me that they are the new management, and I have to follow their instructions or vacate the flat. Otherwise, they will send an evacuation notice. What can I do?
Welcome,
The new management cannot impose an increase greater than 5% unless you agree to it. The new contract is invalid if sent less than 90 days before your contract ends.
You can refuse to sign the contract and file a complaint with RERA to resolve the dispute or request mediation.
We specialize in such cases and can help protect your rights. You can book a virtual or in-office consultation to provide us with more details.
If you have any further inquiries regarding your matter, kindly contact us.
The RERA Rent Index (Real Estate Regulatory Agency) sets the maximum permissible rent increase in Dubai based on the current market value and the previous rent.
Typically, rent increases are capped at a certain percentage, depending on how the current rent compares to the average market rate in the area.
If the rental price increase exceeds the RERA guidelines, it is usually considered unlawful.
If your current lease is being renewed and the increase is greater than 5% (the increase agreed to initially in October), this could be a violation of RERA’s rent increase guidelines.
The 5% increase you agreed to in October seems reasonable, but the more than 10% increase proposed by the new management may not align with what the RERA guidelines permit.
Once you accept the initial contract renewal terms (with the 5% increase), it’s important to understand whether that agreement has been formally executed.
If the new contract with the 10% increase was presented after you already accepted the previous terms, you may not be obligated to sign the new agreement, especially if it contradicts the original renewal agreement.
A new management team cannot unilaterally change the agreed-upon terms, especially if you've already accepted the initial renewal offer.
If you have not yet signed the new contract, the original terms you accepted may still be valid. If the new management threatens eviction, they must follow legal eviction procedures, and you have the right to contest an eviction based on an unlawful rent increase.
Based on your current situation and existing lease agreement, you should refuse to accept any changes to your rental terms imposed by the new management, as they are not legally justified while your current contract is still active.
This is a common issue faced by tenants in Dubai. While the new management has the right to increase the rent, they must adhere to the RERA regulations, which limit the increase to a certain percentage based on the RERA index.
Politely but firmly explain that the rent increase they are proposing exceeds the RERA limits. Refer to the RERA regulations and the previous agreement.
Request them to adhere to the RERA guidelines. If they threaten you by way of eviction, we will proceed for renewal according to the RERA index.
We will discuss the procedures in detail.
Kindly share your WhatsApp number to discuss this further.
We can help you send them a legal notice and renew the contract in accordance with the law.
So contact us on phone number [--------].
Thank you for reaching out regarding your tenancy issue!
Based on your description, the actions of the new management may not comply with Dubai's tenancy regulations under RERA. Here are some key points to consider:
- 90-Day Rule for Rent Increase:
Any rent increase must be communicated to the tenant at least 90 days before the contract's expiration. Since the new contract with the increased rent was sent on November 12 (less than 90 days before January 24, 2025), it appears to violate this rule.
- Validity of the Earlier Agreement:
Since you accepted the renewal with a 5% increase as per the RERA index before the new management stepped in, that agreement remains valid unless mutually agreed otherwise.
- Eviction Threats:
Eviction requires a valid legal reason under Dubai Tenancy Law, such as non-payment of rent or the landlord's intention to use the property for personal use, and must be supported by a 12-month written notice sent via registered mail or notary public.
You may file a complaint with the Rental Disputes Center (RDC) to address this situation and ensure your rights are protected.
I recommend discussing your case in detail so we can assess the best course of action and, if needed, prepare for filing a complaint.
Feel free to reach out to me via WhatsApp or phone at [---------] to discuss this further.
Best regards,
Suhail Rana
Dear questioner,
You are only required to renew as per the previous notification, not the new management's notification for a 10% increase, which does not comply with Dubai rental laws.
If you need further assistance, kindly share your WhatsApp number.
