Can landlord legally increase my rent according to the rental calculator?

Question:

My landlord (a large developer) sent an invitation of rental renewal for our 3 bedroom apartment in Layan with more than 90 days notice via courier. It contained a pro-forma contract which stated the new rent as the maximum that is allowed under the rental calculator citing the relevant law of 2013. However it did not stipulate the actual new amount anywhere in writing.  Now that less than 90 days (renewal due Feb 1, 2015) remains and they have not stated the actual amount of new rent, can they legally increase my rent, which will be by 15% (DH12,000 increase) according to the rental calculator?

We have been in this place for 5 years and got in when it was a reasonable price and now I feel the new rent is unfair as it is bench marked against all the recent newcomers which have obviously paid more in recent years. I want to challenge them on the fact they did not state any fixed figure in writing with more than 90 days notice?

 Answer:

Thank you for your email.

It is the responsibility of both parties (landlords and tenants) to get in touch with each other 90 days prior to the expiration of the tenancy agreement of any changes to the contract.

The RERA rent calculator is updated every quarter and therefore cannot always be so accurate that the displayed rental figure will be the same at a given renewal date in the future. The landlord is therefore correct to give you the notice that the rent will be increased but the actual amount will be determined closer to the renewal date and this is what he appears to have done.

I honestly believe you will be fighting a losing battle if you decide to challenge this. Remember that the calculator is based on the average rental rate not market rates. The rental figures therefore, do go up but also down given market conditions.

I hope this has helped.

The above answer has been brought to you by Mario Volpi who is the Managing Director of Ocean View Real Estate in Dubai. Mario has 30 years of property industry experience in Dubai and London.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

 

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5 thoughts on “Can landlord legally increase my rent according to the rental calculator?

  1. If the rental calculator say you need to pay a 15 % increase, then it means that your current tent is between 30% and 40% below the current average rent for the same unit in your area.

  2. Dear sir,
    At presently i am staying in Al-Baraha Area one studio flat which is rented Dhs40,000 per year in Deira Dubai
    Last year i had new contract with my real estate on 1year contract on 01-04-2014 to 31-03-2015,

    Now my contract expires soon, but i still not get any reminder (Intimation) notice from my Real estate Office, Today i contact my Real Estate Regarding renewal of my tenancy , They told Increase rent 7% from this year , I am really shocked.

    without proper information how they are increased my rent,?

    Note : RERA rules is Real Estate should inform increase rent which is before 90days of current contract expires. But my real estate still today they didn’t give any notice to me.

    give me a good Suggestion

    Regards
    Saburudeen
    Dubai

    • Hi Saburudeen,

      Thank you for your post.

      Per Dubai Law 33 of 2008, if your landlord wants to increase the rent AND the RERA Rental Calculator indicates an increase, the landlord has to give the tenant a 90 day notice in writing (email is ok) regarding the increase. The increase must follow what the Rental Calculator indicates. If the landlord and/or representative fails to give such notice, then there is no increase for the renewal year. If your landlord refuses to abide by the law, you can file a complaint with the Rental Committee.

      I hope this helps.

      Best regards,
      Your ezEstate Team

    • Thank you Gonzo,

      Subscribe our blog to get more such useful content in your inbox.

      Best Regards,
      Your ezEstate Team

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