Rent Increase In Dubai: Can the Landlord Increase Your Rent in 2024?

Rent Property

6 months ago

Renting in Dubai’s dynamic real estate market can be full of surprises. By 2024, the city will be a thriving metropolis attracting global attention, and discussions about rental terms are likely to push landlords and tenants to the wall.

This article seeks to shed light on rent hikes and related law in Dubai, and it should inform the tenants on what they should anticipate, how they should prepare themselves and the lawful limits that govern such alterations.

Regardless of if you’re a long-time resident or a newcomer preparing for your move, knowing such components is essential both in keeping a good tenant-landlord relation and ensuring that you live in the dwelling unit of your choice in this large city. If you’re planning to rent properties in Dubai, it is essential that you understand what the renting concept in Dubai is all about.

Can landlords increase your rent in 2024 suddenly?

The landlords may raise the rent in 2024, but not without warning and all of a sudden. In accordance with the RERA tenancy regulations in Dubai, landlords are allowed to increase rent of Properties for Rent in Dubai. This modification can be done only after two years from starting the contract. Besides, rent increases in Dubai must be in compliance with the rules set up by RERA.

A notice of 90 days has to be given to the tenants by landlords who want to increase the rent. The tenancy cannot be terminated or tenants evicted without a 90-day notice. Rent can be increased by the landlords, but it has to comply with the rental index.

In Dubai, landlords are supposed to utilize the RERA rental index calculator when raising the rent. The rental index determines the highest permissible increment regardless of factors like location, type of property, and prevailing market prices. This guarantees the tenants against undue or excessive hikes.

How Much Rent Can Landlords Increase in Dubai 2024?

The rent value is constant if it is equal to the average rent value or is less than 10%. For values that lie beyond the average by 11% to 20%, a 5% increase will be added. A growth of 10% is registered for the values that are 21% to 30% below the average. A 15% increment is introduced when values fall below the average by 31% to 40%. A 20 % increase is applicable in case the value of the rental is more than 40% below the index.

For instance, a tenant living in a one-bedroom rental apartment in Business Bay at AED 50,000 as the current rent, a landlord has an option to increase the rent. The average rent index of a 1-bed apartment in Business Bay is AED 67,000 – AED 81,000. This implies that the current rent of AED 50,000 is almost 31% to 40% lower than the mean.

The increase of the rent shall be equal to 15%, which is AED 7,500 more than the current rent. The value adjustment can be agreed upon by tenants and landlords in accordance with the rental index.

Once the notice is received, the tenants may refuse the rent increase within thirty days of the landlord’s notification. Moreover, tenants can claim their rights and refer the issue to the Rent Disputes Committee (RDC) if the landlord demands higher rent before two years have passed.

Who pays for the house repair costs?

In Dubai, house repair costs are the landlord and tenant responsibility. Under Dubai’s rent regulations landlords are usually in charge of major property repairs and maintenance. This involves structural repairs, electrical, plumbing, HVAC (heating, ventilation, and air conditioning), among other things that would affect the property’s usability. The notion is to make sure that the property remains suitable for habitation and in the same state as it was rented. These repairs should be carried out by the landlord provided that the damage is not caused by the tenant’s careless or deliberate acts.

However, minor repairs and maintenance are frequently the tenant’s responsibility. Rental agreements often contain specific clauses on which party is responsible for various repairs.

As a result, both tenants and landlords in Dubai need to look at their tenancy agreements in detail to know their obligations and whether they are responsible for costs of the maintenance of the property. The communication between a landlord and a tenant is very important for successful management of the repair responsibilities and avoiding disputes.

Conclusion!

To summarize, the rental laws in Dubai are created to benefit both landlords and tenants. The laws specify, in detail, the rights and duties of each party and thereby assure that renting is just and clear. It is important for a tenant to know the rights, which include the issues of rent increase, security deposit and maintenance of the property. Conversely, landlords are supposed to follow the law when running their properties and dealing with tenants.

Also, consider taking help from the best real estate services provider company while renting property in Dubai. These companies will help you with the legalities and support you through your renting experience.