I have three-year lease contract, can my landlord increase rent every year?

Question: A year ago, I rented a villa from a real estate office for a period of 3 years. The lease contract states that the landlord has the right to increase the rent value according to rental index calculator. Three months ago, the real estate office sent me an email asking me to increase the rent by 20% of the rent value. They also asked me to pay the service fees for the complex, such as the swimming pool and gym, in addition to other services, noting that these services were free of charge in the first year. My question is, according to the rent in Dubai, does the landlord have the right to request this increase that I mentioned, especially since the lease is for a period of 3 years? Please advise

Answer:

The maximum amount of increase is up to 20% according to Article 1 of the Decree No. 43 of 2013 On Determining the Increase in the Real-Estate Rentals in the Emirate of Dubai, which states that (The percentage of the maximum increase in the real-estate rental in the Emirate of Dubai shall be determined upon renewing the real-estate leases as follows: 20% of the rent value of the real-estate unit, if its rental is decreased by more than 40% of the average market rental rate.

In case you have agreed for the increase, so you will abide with it accompanied with a notification of this intent no less than (90) days before the date on which the Lease Contract expires. Otherwise, the landlord has the right to increase the rental prior to the expiry of the Lease Contract only, which means not before the passage of three years in your case according to Article (13) of Law No. (33) Of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.

For the purposes of renewing a Lease Contract, the Landlord and Tenant may, prior to the expiry of the Lease Contract, amend any of its terms or reconsider increasing or reducing the Rent. If the Landlord and Tenant fail to reach an agreement in this regard, the Tribunal may determine the fair Rent, taking into account the criteria stipulated in Article (9) of this Law.

Regarding the amenities, in case you agreed in the lease contract to pay such amounts, then you will be responsible. Otherwise, they are considered as part of the property without any extra payment according to Article 11 of the Law No. (26) Of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai.

Unless otherwise agreed, the Rent will cover use of the Real Property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.