How much can they increase my rent?

Is it true that there are rules on wow much can they increase my rent? Let analyse it together

Standard rent contracts in Dubai are for 1 year. At the end of the contract usually you either renew it or cancel it. How much can they increase my rent at the end of the contract though?

There are a few rules you should know in order not to be scammed by your landlord.

First of all, it is normal to have a 1 year contract. A parts for some rare exceptions, all rental contracts are for one year. This is partially due to the fact that Dubai population is constantly changing. There are the ones who arrive and the one who go. For you as well, having a one year contract might be useful if you decide that your time in Dubai is over and you want to relocate.

So if you are signing your first rental contract, don’t worry, it is normal. You can also check what to pay as Deposit and which other costs you might have in our article.

Something you really want to negotiate though is the notice period.

Let’s make a distinction between leaving at the end of your contract or before. If you want to leave before the ned of the contract or you want to keep the option open, it is better to negotiate favourable terms. Something you do NOT want is to have a penalty.

It is common to have a 2 months notice period with a 1 or 2 months month penalty.

This means that if you want to move at your 9th month of contract, you need to give the notice at the beginning of the 7th month. Moreover, depending on the terms, you might be forced to pay 1 or 2 month of penalty. In the example, you need to pay the 10th month even if you are not going to live inside. Therefore, always better to negotiate this option at the signing moment. Try to get 0 months penalties or at least only 1 month. We know might be rare the occasion that you leave sooner, but always better to protect yourself.

The other deadline you have is the contract renewal. Usually you, and the landlord, have until 90 days before the end of the contract to define the new terms for the next contract. This means that if you want to renew your contract you need to say something before 90 days. Let’s see the case in which the landlord is not saying anything to you before the due date. In this case, it is defined that he does not want to change the terms of the contract for the next year. Therefore, he is okay with you staying.

If you want to negotiate a better price, you need to say something before 90 days to the end of the contract.

In case you miss this due date, unfortunately you cannot re-negotiate the price. While, if the landlord misses the date, he cannot increase your rent as well. The 90 days might be not standard. Just read the contract and appoint on your agenda the due date in order to not forgetting it.

However, if the landlord wants to increase the rent and he does it before the due date, how much can they increase my rent?

The rules are clear. RERA rules are applying. The only exception is if you are living in an Hotel apartment. In this case the hotel rules apply.

RERA defines the maximum yearly rental increase on the average price of the units in your area. Therefore, you need to compare what you are paying to the other units. You can estimate if you are already paying too much or if you are paying below average. If you pay more than average, the landlord CANNOT increase your rent. While, if you pay below average, landlord can increase the rent but by a maximum percentage.

According to the Land Department’s Decree Number 43, a landlord must follow the rules below:

• If your rent is less than 10% below the average market rate, no rent increase is permitted.
• If your rent is between 11% and 20% below the average market rate, a maximum increase of 5% is permitted.
• If your rent is between 21% and 30% below the average market rate, a maximum increase of 10% is permitted.
• If your rent is between 31% and 40% below the average market rate, a maximum increase of 15% is permitted.
• If your rent is more than 40% below the average market rate, a maximum increase of 20% is permitted.

In case the landlord wants to increase the rent and he is not following the rules. In this case, you can open a claim to the RERA and keep your rent the same. Sometimes you can just mention to the landlord that you to RERA if he doesn’t agree to a lower rent. Treating to do so most of the times is enough to make him changing his mind. Landlords know the rules.

You can find RERA rules and the average market rate of your area at this link: RERA rules.