Ask Gulf News: When and how Dubai landlords are legally permitted to increase rent
Dubai rent hikes: Legal limits and landlord obligations explained
Question: Is it legal for a landlord in the Emirate of Dubai to increase the rent whenever they want? Is it legal for a landlord to increase the rent more than once in a year? Please advise.
Answer: According to Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai and Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai, a landlord has the right to increase the rental price when the term of a lease contract expires, subject to the following conditions:
The increase must not exceed 20%.
The increase must be in line with the Dubai Land Department (DLD) approved range for the relevant area and the average rental value of similar units, taking into account the criteria for determining the percentage of rent increase prescribed by the Real Estate Regulatory Agency (RERA); the prevailing economic situation in the Emirate; the condition of the real property; the prevailing rental value of similar properties in comparable markets within the same area; the provisions of any legislation in force in the Emirate regulating real property rent; and any other factors the Tribunal deems appropriate.
The landlord must notify the tenant of their intention to increase the rent no less than ninety (90) days before the lease contract expires.
If the landlord and tenant fail to reach an agreement in this regard, the Tribunal may determine the fair rent.
In cases where the lease contract term is one year, the landlord does not have the right to increase the rental amount more than once within that year.
