OPINION: Landlords In Dubai Are Over-Inflating Rents By Citing The Thriving Market As The Cause

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Dubai has been experiencing a property market boom over the past few years, with a surge in demand for residential and commercial spaces. However, this has resulted in some landlords over-inflating rental prices, citing the thriving market as the cause.

To curb this issue, the Dubai Land Department has implemented strict regulations that dictate how much landlords can increase rent every year. These regulations are in line with the Real Estate Regulatory Agency (RERA) calculator, which takes into account various factors such as the location, age, and condition of the property.

Under these regulations, landlords are only permitted to increase rent by a maximum of 2.07% for properties that fall under the ‘Rent Increase Calculator.’ This calculator is based on a number of criteria such as the number of years the property has been rented, the current rent amount, and the average rent for similar properties in the area.

For properties that do not fall under the Rent Increase Calculator, landlords are allowed to increase rent by a maximum of 5% per year. This includes properties that are newly built, have been vacant for more than six months, or have undergone significant renovations.

In my personal experience, my landlord increased my rent by a whopping 20% in a single year and reduced the number of post-dated cheques from six to just one

While I understood that the rental market was booming, I felt that this increase was unjustified and unfair. It was only after doing some research and consulting the RERA calculator that I realized the landlord had exceeded the maximum rent increase allowed by law.

 

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It is important for landlords to adhere to these regulations to ensure a fair and transparent rental market

Tenants can also check the RERA calculator to ensure that they are not being overcharged for their rental property.

The Dubai Land Department has also implemented measures to protect tenants from unjustified rent increases. If a landlord intends to increase rent, they must provide tenants with a minimum of 90 days’ notice before the end of the tenancy contract. The landlord must also provide a valid reason for the rent increase, such as significant renovations or increased service charges.

In cases where the landlord is found to be in violation of the rental regulations, they may face penalties such as fines or even imprisonment. Tenants should also be aware of their rights and utilize the RERA calculator to ensure that they are not being overcharged for their rental property.

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