Renewing Your Rental Contract in Dubai: What You Need to Know

Dubai Rental Contract Renewal:

Are you facing the renewal of your rental contract in Dubai? Perhaps you’re concerned about the possibility of a rent increase. In Dubai, tenants are informed about potential rent hikes in advance, following the emirate’s rental regulations overseen by the Dubai Land Department (DLD).

To estimate the potential increase in your rent, you can use the Real Estate Regulatory Authority’s (RERA) online Rental Index. This tool provides insights into average rents for similar units in your area and the permissible rent hike. Here’s how to use it:

1. Visit the RERA Rental Index website.
2. Input your residential unit details or property type if you lack a Title Deed Number.
3. Select your contract end date and property type (apartment or villa).
4. Choose your area and specify details like the number of rooms and current annual rent.
5. After confirming the verification, click ‘calculate’ for results.

You should receive a 90-day notice if your landlord intends to increase your rent, as mandated by Article 14 of Dubai Law No. 26 of 2007. Both parties must agree otherwise for any deviation from this rule. If the proposed rent increase exceeds the limit outlined in the Rental Index, you can seek resolution through the Rental Dispute Centre at the Dubai Land Department.

Factors to Consider Renewing Rental Contract in Dubai

Before renewing your tenancy contract, consider these factors:

• Assess whether the property still aligns with your future plans, such as starting a family or changing jobs.
• Evaluate if the rent fits within your budget and explore alternatives if necessary.
• Review any changes in lease terms, including amenities and maintenance responsibilities.
• Understand any proposed rent increases and negotiate terms if needed.
• Discuss any necessary repairs or renovations with your landlord.
• Ensure the renewal contract is registered with Ejari to avoid conflicts.
• Reflect on your lifestyle and consider if the current property meets your needs.
• Explore other rental options to compare before making a decision.

Can Landlords Raise Rent in Dubai?

Before tenants sign a contract, it’s crucial they understand the terms and conditions, including whether landlords can increase rent in Dubai and by how much.

Under RERA tenancy laws in Dubai, landlords can indeed raise rent, but only after two years from the establishment of the contract. Additionally, any rent increases must comply with RERA rules.

Landlords must provide a 90-day notice to tenants if they intend to increase rent. Moreover, they cannot cancel the contract or evict tenants without giving a 90-day notice.

However, any rent increase must align with the rental index set by RERA. Here’s how much landlords can increase rent in Dubai according to the index:

• No change if the current rent is equal to or 10% less than the average rent.
• 5% increase if the rent is 11 to 20% less than the average index.
• 10% increase if the rent is 21 to 30% less than the average index.
• 15% increase if the rent is 31 to 40% less than the average index.
• 20% increase if the rent is more than 40% less than the rental index.

Tenants have the right to refuse a rent increase within thirty days of receiving the notice. They can also report any disputes to the Rental Dispute Committee (RDC) if the landlord demands an increase before the two-year mark.

Guide to Using the RERA Rental Contract Increase Calculator

Rent is often the biggest expense for households, so it’s crucial for tenants to ensure they’re getting the best value for their money. That’s where the RERA Rental Increase Calculator comes in handy. Here’s everything you need to know.

ABOUT RERA The Real Estate Regulatory Agency (RERA) is part of the Dubai Land Department (DLD) and oversees the relationship between landlords and tenants in Dubai’s real estate sector.

RENTAL INCREASE CALCULATOR One of RERA’s key responsibilities is maintaining and updating the Rental Price Index in Dubai. This index documents average rental prices and is updated annually to ensure transparency in rental transactions across the city.

To make the Rental Price Index accessible to residents, RERA introduced the Rental Increase Calculator. This online tool, also known as the RERA calculator, helps users identify potential rent increases and the average rent trends in any area of Dubai. Best of all, it’s free for all Dubai residents and provides valuable insights for informed renting decisions.

HOW TO USE THE RERA RENTAL INCREASE CALCULATOR

Using the RERA calculator is quick and easy. Whether you’re looking for a 1-bedroom flat or a larger villa, follow these simple steps:

1. Log into the Dubai REST app or visit the Dubai Land Department’s official website.
2. Open the “Inquiry about the Rental Index” section.
3. Enter the required information into the RERA rent calculator, including property type, current contract expiry, property location, ownership status, total bedrooms, and current annual rent.
4. Click the ‘Calculate’ button to generate your result.

Once you’ve clicked ‘Calculate,’ the screen will display the average rents in your area for your selected property type and whether you are eligible for a rental increase.

Using the RERA Rental Increase Calculator empowers tenants to make informed decisions about their rental expenses and ensures they’re getting fair value for their money.

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