Why does the RERA Rent Calculator not consider certain basic criteria?

Question:

I received a notice from my real estate agent that my tenancy contract is due for renewal and I can expect an increase of rent based on the RERA Increase calculator.

My question is why does the RERA Rent Calculator not consider certain basic criteria like age of the building, if it has central air conditioning, amenities etc. When I checked the RERA Rental Calculator, it said that my rent is less than 40% of market rate and can expect 20% increase. The fact of the matter is that my building is more than 30 year old with window air conditioning, without a lift, etc.

Since I have moved to this building 2 yrs ago, I had a rental increase every year by around 10 %, 20% and now expecting 20% for this coming 3 yr.

Answer:

The RERA Rent Calculator is the only current means of calculating the permissible rent a landlord can legally change for a given year. Whilst the calibration used appears to be fairly rudimentary, it does not take into consideration specific features such as age of building, condition, facilities, view and if it’s an apartment the floor level.

The only thing I can really comment on from your information is that if your rent has increased by these amounts each year, your initial rent must have started from a low base.
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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2 thoughts on “Why does the RERA Rent Calculator not consider certain basic criteria?

  1. My Real Estate agent charges 5% of the rent as annual renewal fees apart from rent Increase based on RERA calculator. Is this fare?
    The maintenance of the building is also poor.

  2. Hi Sheik,

    Thanks for contacting us. Please visit Ask The Rental Expert section of our website, where you can ask any question and our rental expert will answer you accordingly.

    Regards,
    ezEstate Team

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