Dubai: Is your lease contract up for renewal? If so, you may be wondering whether your landlord may increase the rent of your apartment or villa. To make renting easier for tenants in Dubai, the Dubai Land Department has an online Rental Index, which gives tenants a clear idea on the rent increase they can expect if their contract is up for renewal. Here is how you can use the service.
Will the landlord increase my rent?
Firstly, it is important to note that in case the landlord plans to increase the rent of a residential unit, he or she is required to inform the tenant three months before the contract is up for renewal, according to Dubai Law No. 26 of 2007 Regulating Relations between the landlord and tenant in the Emirate of Dubai. If you do receive a notice from your landlord that the rent is going to be increased, you can check if the amount of increase is within the range permitted by the Dubai Land Department.
By how much can the rent be increased?
To use the Rental Index service by Dubai Land Department, follow these steps:
- Visit https://dubailand.gov.ae/en/eservices/rental-index/rental-index/#/
- Select the type of unit you are renting – residential, commercial, Industrial or staff accommodation.
- Select the contract end date from the drop down menu.
- Choose the property type – apartment or villa.
- Select the area you are living in.
- You would then need to provide details of your residential unit like the number of rooms and your current annual rent.
- Once you confirm the ‘Captcha’ verification, click ‘calculate’.
The calculator will then provide you details of …
1. the current rent increase guidelines in Dubai
2. the current rents in your locality for your type of unit (one bedroom, studio, villa etc.); and
3. the maximum amount of increase in rent allowed, based on the rental increase guidelines.
The rent increase guidelines set out a slab system for permitted rental increase. This slab system is based on what the current rent of a residential unit is, compared to the average rent in the area. Depending on how low your rent is, the landlord will be able to increase the rent by 5, 10 or 15 per cent.
For example, according to the Dubai Land Department, if the current rent of a unit is 21 to 30 per cent less than the average rental value of similar units, the rent may be increased by a maximum of 10 per cent, at the time of renewal.
Based on these factors, the Rental Index will provide you with the amount by which your rent may increase, at the time of renewal.
The platform also provides users with the option of downloading the report for their personal use and reference.
What if the rent increase is not within the permitted limit?
In case your rent has been increased significantly and is beyond the limit mentioned in the Rental Index, you may reach out to the Rental Dispute Centre at Dubai Land Department, through their toll-free number – 800 4488.24ac06ae-f67e-42fa-9507-e89238df0c44