Questions & Answers
Are landlords allowed to increase rent for residential property at the first annual renewal?
Hello,
Are landlords allowed to increase rent for residential property at the first annual renewal?
My landlord is asking for a 10% increase. My contract renews on June 20, 2025, and the 90-day notice period ends on March 19, 2025. At present, the RERA index shows no increase for my apartment.
They have also included the following language in their email requesting the rent increase:
"Please be further advised that your rent will be reviewed and revised, subject to applicable laws and any amendments to regulations by the Dubai Rent Committee."
1. Are they allowed to increase rent after the first anniversary of the lease?
2. If the index currently shows no increase, on what basis are they asking for a 10% increase, and what does the language in quotation marks allow them to do?
Dear Client,
Thanks for your question! I hope you are doing well. I will assist you in this matter.
Landlords can increase rent at the first annual renewal but must follow RERA guidelines. If the RERA index shows no increase for your apartment, the 10% increase request is unjustified.
The quoted language is a standard clause but doesn't override RERA rules. Key points:
- 90 days' notice is required for rent increases.
- Increases are allowed once yearly at renewal.
- Maximum 20% increase, only if rent is 40%+ below market value.
- Tenants can verify using the RERA Rent Calculator.
You can refuse the increase based on the current RERA index. If the landlord insists, you can file a complaint with the Dubai Rental Dispute Center.
Keep all communications in writing and refer to official RERA guidelines in discussions.
You can contact us via WhatsApp for further clarification or additional support. We are dedicated to providing professional, timely, and comprehensive assistance tailored to your situation.
Thank you!
ABDUL WAHIED
The phrase "subject to applicable laws and any amendments to regulations by the Dubai Rent Committee" is a general statement that landlords often include in their communications.
It essentially means they are aware that the rent increase must comply with RERA rules.
The 90-day notice period is important for permitted rent increases, it doesn't apply in your case since the increase itself is not allowed.
The rent is increased according to the RERA indicator, and the landlord is not allowed to increase the rent.
If you have any other inquiries, contact us on phone number [--------].
Dear Inquirer,
We are pleased to serve you and address your inquiries.
The Real Estate Regulatory Agency index must be adhered to as a basis for examining whether or not to increase the rent.
Kindly contact us via email or call our offices in Dubai or Sharjah.
Jasim Al Haddad Advocates & Legal Consultants
Hello,
After the first renewal, a rent increase is subject to RERA’s guidelines, and the increase must comply with the RERA rent index.
According to the RERA index, landlords can only increase the rent within certain limits based on the current market rate.
The increase is also dependent on factors such as how much below the market rate your rent is compared to similar properties in the area.
If the RERA Rent Index shows no increase for your apartment at the time of the renewal, then according to the current regulations, the landlord should not be asking for a rent increase.
RERA provides an index that helps determine fair rent values and rent increases based on market trends in specific areas.
If they insist on a 10% increase, and the index shows no justification for it, you may be entitled to challenge the increase based on the current law and the index.
For further assistance, kindly share your WhatsApp number.
According to UAE law, the landlord cannot increase rent during the first year of the lease, unless there is a specific agreement between the parties.
If the RERA index shows no increase, then requesting a 10% rent increase may be unjustified in this case.
As for the language in the email, it allows them to review the rent based on potential amendments by the Dubai Rent Committee, but if no amendment occurs, they cannot increase the rent.
