Renting a property in Dubai? If so, you might be curious about the rules around rent increases. Here, we break down everything you need to know in simple terms.

WHY ARE RENTS INCREASING IN DUBAI?
Dubai's property market is dynamic, with prices changing based on various factors like demand, location, and the economy. Recently, many landlords have been increasing rents due to high demand for properties and inflation.

WHAT ARE THE LAWS GOVERNING RENT INCREASES?
Dubai has clear laws to regulate rent increases, ensuring fairness for both landlords and tenants. These laws are overseen by the Real Estate Regulatory Agency (RERA). Here's a rundown of the key rules:

1. Rent Increase Notice: Landlords must provide at least 90 days' notice before increasing the rent. This allows tenants enough time to decide whether to accept the new rent, negotiate, or move out.
2. RERA Rent Index: The rent increase must align with the RERA Rent Index, a tool that helps determine the average rental prices for different areas in Dubai. Landlords can’t increase rent arbitrarily; they must follow this index. Click here to access Rent Index Calculator.
3. Percentage Slabs for Rent Increase:
   • 0% Increase: If the current rent is less than 10% below the market rate.
   • 5% Increase: If the current rent is 11-20% below the market rate.
   • 10% Increase: If the current rent is 21-30% below the market rate.
   • 15% Increase: If the current rent is 31-40% below the market rate.
   • 20% Increase: If the current rent is more than 40% below the market rate.

These percentage slabs ensure that rent increases are fair and justified based on the market conditions.

Useful links

• Tenancy guide by RERA

HOW CAN TENANTS PROTECT THEMSELVES?

1. Know Your Rights: Familiarize yourself with the rental laws in Dubai. Being informed is your first line of defense.
2. Check the RERA Rent Index: Always check the RERA Rent Index to ensure any rent increase is within the allowed limits.
3. Negotiate: If you receive a rent increase notice, try negotiating with your landlord. Sometimes, landlords are open to discussions, especially if you’re a long-term tenant.

WHAT SHOULD LANDLORDS DO?

1. Follow the Law: Ensure you provide the required notice and adhere to the RERA Rent Index.
2. Communicate Clearly: Clear communication with your tenants can prevent disputes and foster a good landlord-tenant relationship.
3. Be Fair: Consider the market conditions and your tenant’s circumstances before deciding on a rent increase.

FINAL THOUGHTS
Understanding the rules around rent increases in Dubai is crucial for both landlords and tenants. By following the guidelines set by RERA, everyone can ensure a fair and transparent process. If you’re a tenant facing a rent increase or a landlord planning one, remember to stay informed and communicate effectively.