Rent Increase: What to Do?

There are many questions regarding the rent’s increase. Do landlords have rights to change rental agreement? How much is a maximum increase? Can tenants protect themselves and how can they do it?

So, firstly, you should take a look at the original law regarding rental agreements, knows as the “Law Regulating Relationship between Landlords and Tenants in the Emirate of Dubai No 26 of 2007”. According to this law before changing any terms of the rental agreement, a landlord must give 90 days’ notice. If he/she did not do it, then the landlord is not allowed to increase the rent, or make any others changes, without tenant’s agreement.

If this notice was given on time, the landlord may not increase the rent by this kind of amount. The maximum increase generally is 20 % per year, but the maximum per specific property is set out in the Rera calculator. You can find it at www.dubailand.gov.ae. This applies to all properties in the emirate of Dubai. Tenants can fill in a form to find out the maximum legal increase.

In case if the landlord is persuaded of the rent’s increase and does not deal with you, we suggest you follow the law, show him this agreement what we have mentioned before and if he/she does not agree you should tell him that you will be referring him to the Rent Committee. This is the section of Dubai Land Department (DLD). They are arbiter in rental disputes. They will support you. So, any landlord who does not treat tenants in accordance with the law will lose the case. They will obey the law. Most landlords will back away at this point if they realize they are wrong.

If you do not have any choice as only to make a complaint to the Rent Committee, you should keep in mind that the complainant must pay a fee of 3.5 per cent of the current rent. If you win, the landlord must pay money back.

Walton Consultants DMCC