Navigating rental regulations and calculating rental increases can be a challenge when renting property in Dubai. Fortunately, the Real Estate Regulatory Agency (RERA) has introduced a useful tool called the RERA Rental Increase Calculator that simplifies the process of determining rental increases and ensures that any rent increase complies with Dubai’s rental index.
In this article, we will look into how the RERA Rental Increase Calculator works and how it can benefit both tenants and landlords.
The RERA Rental Increase Calculator was introduced in December 2013 through Decree No. 43 of 2013, with the aim of preventing any arbitrary rental increases in the market.
It operates based on the RERA rental index, which is updated annually and provides rental recommendations valid for all properties in Dubai throughout the year.
With the Rental Increase Calculator, landlords and tenants can input the required property details and get results indicating whether a proposed rental increase is allowed or not.
This straightforward process ensures that rental increases adhere to the regulations set by RERA, promoting fairness and transparency in the rental market.
The calculator primarily compares the price of the property with the average prices of similar properties in the area, but it’s important to note that it does not take certain factors into consideration, including the age of the building and its condition, available facilities, and the floor level of the unit.
As per RERA regulations introduced in January 2016, rents can only be increased based on the RERA rental index, which is updated every year. The index allows a maximum 20 percent increase in rent, depending on how the rent compares with the existing market value of the rental unit.
The rate of increase is based on the following rental index:
If a rental increase is permitted based on the index, the landlord must provide a written and notarized notice to the tenant 90 days before the contract renewal date. The landlord may hand over the notice personally or send it through registered mail.
If a landlord fails to provide the notice within the specified timeframe, the tenant has the right to refuse any rental increase.
In cases where a landlord arbitrarily increases the rent, tenants can use the rental calculator as supporting evidence in negotiating the rental price. If the matter is not resolved, tenants can file a rental increase dispute with the Rental Dispute Settlement Centre.
The RERA Rental Increase Calculator serves as a valuable tool in Dubai’s rental market, ensuring fairness, transparency and compliance with rental regulations, and helping reduce disputes.
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