Can Landlords Raise Rents in the First 3 Years in Dubai
The rental portion of Dubai’s residential property market is significantly reliant, with industry executives claiming that roughly 80% of the Emirate’s citizens live in rented flats. As a result, rents are a hot topic and among the most talked about among residents. Tenants always welcome a decrease in the rental rate and vice versa. In addition, tenants & property owners must deal with a variety of concerns, including rent calculation, unit upkeep, security deposit deduction, and, most crucially, rent hikes. Phillip Caraiscos, a chief asset management officer of real estate agency CORE, responds to questions about these contentious issues. Look the customer’s queries with expert’s answers.
What is the RERA rent calculator and how does it work? What method is used to calculate it? In addition, how might tenants benefit from it?
The RERA rental index is a tool that allows users to assess possible rent fluctuations and find out the market average rent (by unit type) in any area. It is calculated using Ejari data for various property kinds and is updated on a regular basis. Tenants can use it to see if the property owner is within the rent indicators for the place the renter is seeking.
What can a tenant do if he or she is offered an apartment at a higher rent than the market rate?
In the case of the new lease, rentals are generally a market component, and the tenant and landlord can negotiate the rent and come to an agreement. Renewal rent hikes, on the other hand, should be in accordance with the rental index. If the tenant has any future disagreements, he or she can go to the Rental Resolving Disputes Centre for help.
Could you clarify the Rental Dispute Settlement Centre’s procedure? How does it work if a tenant has a disagreement with the landlord? How long will it take for it to be settled?
If a tenant has a disagreement with the landlord, it is recommended that the tenant first interacts with the landlord and attempts to settle the situation. If there is a conflict, the tenant can go to the Rental Dispute Resolution Centre for help. It includes a fast method for resolving complaints like unpaid rents & security deposits, which takes only a few weeks.
What does the law say about a rented apartment’s upkeep? Painting or other small repairs, for example?
Unless both parties agree differently, maintenance work on a rental flat, whether significant or minor is the duty of the landlord. However, most rental contracts provide that the tenant is responsible for modest maintenance charges (usually less than Dh500). Repainting at the conclusion of the lease period is also maintenance work, and it is the property owner’s responsibility unless the lease agreement specifies otherwise.
In Dubai, when or how often may rents be increased? Is it true the landlords are unable to raise rents during the first three years of a lease?
If a rental increase is allowed under the RERA rental index, it can be attached to the end of each lease period. Although lease periods vary, most residential leases are for one year, and business leases are for one year and up. If a rental increase is required due to the RERA rental index, the landlord has the option of increasing the rent or not and must notify the tenant 90 days first before the lease term expires, unless otherwise agreed. No, given the current legislation.
When should a renter be notified of a rent increase? Is it possible for renters to challenge the rent increase? If so, in what way and under what conditions?
In the event of a rental increase based on the RERA rental index, the tenant shall be provided 90 days’ notice. If the asking Dubai Rent does not fall within the rental index range, tenants can challenge the rent increase.
What is the maximum amount that can be removed from security deposits? Tenants sometimes complain about property owners taking large sums from deposits made in good faith. Can a property owner, for example, deduct the cost of deep cleaning or repainting an apartment from the security deposit?
In the case of overdue rents and other deductions stipulated in the lease contract, such as usual costs for repainting and deep cleaning, the property owner can take from the security deposit.
What is the procedure if an owner wants a tenant to vacate? Is it possible for the property owner to order the tenant to vacate the premises before the contract expires?
If the property owner wants the renter to leave, he or she must provide the tenant with 12 months’ notice. The following are extracts from Law 26 of 2007 regulating eviction criteria.
- In the following circumstances, a landlord may demand removal of a tenant before the end of the tenancy period:
- If the tenant failed to pay the whole amount of rent, or a portion of it, within 30 days of receiving notice from the landlord.
- The tenant sublets the property, or a portion of it, without the property owner’s written consent, the subtenant is subject to eviction, and the property owner retains the right to refer the tenant for compensation.
- If the tenant uses the property for immoral or illegal purposes, or allows others to do so.
- Uncertainty a tenant alters the property that endangers its safety and cannot be restored, or if he causes damage to the house deliberately or due to his gross carelessness in failing to take adequate precautions, or if he allows others to do so.
- If the tenant utilizes the property for any purposes other than those for which it was leased, or in a manner that is in violation of planning, building, or land-use restrictions.
- If the building is in danger of collapsing, the property owner must present a technical report signed by Dubai Municipality to verify such a condition.
- What if the renter fails to comply with legal requirements or tenancy, contract terms within 30 days of the property owner’s notification that such duties or conditions must be met.
- When a tenant’s lease term expires, the landlord may pursue eviction under the following circumstances:
- If the Emirate’s development requirements necessitate the property’s demolition and reconstruction in line with government officials’ instructions.
- If the property needs repair or comprehensive maintenance that cannot be carried out while the renter is occupying it, provided that a technical report signed by Dubai Municipality is submitted to that effect.
- What if the property owner desires to demolish the house for rebuilding or to construct new structures that restrict the tenant from using the leased property, providing that the relevant licenses are secured.
- If the owner desires to reclaim the property for personal use or the use of his first-degree relatives.
- If the property owner desires to demolish the house for reconstruction or to construct new structures that restrict the tenant from using the leased property, provided that the relevant licenses are secured.
- Uncertainty the owner desires to reclaim the property for personal use or the use of his first-degree relatives.