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Rent Increase Rules in Dubai – Know Your Rights and Limits in 2023

rent increase rules in dubai

Dubai’s real estate market witnessed a 36% surge in rental prices in 2022, prompting more tenants to renew their leases.

This increase has led landlords to consider raising rents even further, which can concern tenants. Understanding the rent increase rules in Dubai is crucial for both landlords and tenants.

This article will delve into the regulations surrounding rent increases, the maximum allowable limits, and your rights as a tenant.

Office of Al Mulla. Whatsapp: Click here. Phone: 00971501961291.

Rent Increase Rules in Dubai – Know Your Rights and Limits 2023.

Your landlord can increase your rent, but there are limitations. This increase can only occur at the time of lease renewal, not during the existing lease period.

The Dubai Land Department (DLD) mandates that landlords give tenants a minimum of 90 days’ notice before raising the rent.

This notification should be given before your tenancy contract is set for renewal, ensuring transparency in the process.

What If the 90-Day Notice Is Not Complied With?

Should your landlord fail to provide the mandated 90-day notice, you have the legal right to reject the rent increase.

The landlord cannot proceed with the rent hike if the notification is not provided in writing or electronically. In such cases, your tenancy contract automatically renews at the existing rental price.

If the landlord insists on the increase, you can escalate the matter to the Rent Disputes Settlement Centre, with costs potentially awarded to you as the successful applicant.

Understanding the Maximum Allowable Rent Increases.

Dubai’s Decree Number 43 outlines the permissible rent increases for 2023 based on the gap between your existing rent and the average market rental rate. The following caps apply:

  • Less than 10% below market rate: No rent increase allowed.
  • 11% to 20% below market rate: Maximum 5% increase.
  • 21% to 30% below market rate: Maximum 10% increase.
  • 31% to 40% below market rate: Maximum 15% increase.
  • More than 40% below market rate: Maximum 20% increase.

Determining the Average Market Rental Rate.

The Dubai Land Department’s Rental Index is a valuable tool for tenants and landlords. This online calculator assists in gauging the average market rental rate.

The tool calculates the average rent by entering property specifics like type, area, and bedrooms.

This index serves as a reliable reference for rental values and helps understand the permissible rent increase limits.

What to Do If Your Rent Increase Isn’t Justified?

If you believe that your landlord’s proposed rent increase surpasses the limits stipulated by the Rent Index, engage in a conversation with them.

Communicate the permissible increase according to the rules. If negotiations don’t yield the desired outcome and you’re certain of your rights, resort to the Rent Disputes Settlement Centre for resolution.

FAQs about rent increase rules in Dubai.

Initiate a dialogue with your landlord about the permissible increase. If unresolved, seek assistance from the Rent Disputes Settlement Centre or legal professionals like Al Mulla.
No, rent increases can only occur during lease renewal in Dubai.

Conclusion.

Navigating rent increase rules in Dubai is vital for tenants and landlords alike. The regulatory framework ensures transparency and fairness in the rental market.

Being aware of your rights, the 90-day notice requirement, maximum allowable increases, and the Rental Index can empower you in managing rent-related matters.

If you encounter challenges, remember that legal experts like Al Mulla Lawyer & Legal Consultant can provide invaluable guidance on rental cases in Dubai.

Contact the office of Al Mulla via Whatsapp. Click here. You can also call us on phone: 00971501961291.

Learn about Rental Laws in Dubai in 2023 and read about Rental Case Dubai UAE 2023. Also, Understand Security Deposit Rent Dubai.

Furthermore, learn How to Check Rent Increase in Dubai 2023 and Understand the Dubai Rent Increase Notice Period.

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