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Can the rent of your property be increased after signing the contract?

Can the rent of your property be increased after signing the contract?

It is possible for the landlord to increase the rent when the lease is up for renewal. Earlier the landlord could not increase the rent for the first two years of the tenancy but a law in 2013 removed this protection for tenants. The Decree of 2013 is applicable to landlords from both private and public sectors, and covers both the residential and commercial lease in Dubai.

Dubai Rent Cap Law
It is compulsory to register your tenancy contract and obtain an Ejari certificate. Although the landlord can increase the rent, it is still regulated and hike must be in compliance with the provisions of the law. It is advised by the top lawyers of Dubai to keep in mind the Dubai Land Department ‘Property Rent Index’ while making an increase in the rent. Article 1 Decree no. 43 of 2013 states:

  1. when the rent of the property is up to 10 per cent less than the market rental value of a similar property: The landlord shall not increase the rent,
  2. When the rent of the property is 11 to 20 per cent less than the market rental value: The landlord may increase the rent maximum by 5%,
  3. when the rent of the property is 21 to 30 less than the market rental value: The landlord may increase the rent maximum by 10%,
  4. When the rent of the property is 31 to 40 per cent less than the market rental value: The landlord may increase the rent maximum by 15%,
  5. When the rent of the property is less than the market rental value by more than 40 per cent: The landlord may increase the rent maximum by 20%.

Therefore, in no case the maximum percentage increase cannot exceed 20%; different Emirates have different rules on how much rent can be increased in a given period, our best lawyers in Dubai suggest consulting a lawyer before doing so.

A rental increase calculator is also present on the website of the Dubai Land Department. It is to be noted that a landlord must give 90 days’ notice to the tenant in case of making changes to the rent contract prior to the expiration of the lease.

Conclusion
The landlord can increase the rent on renewal of the lease but the tenant can refuse to comply if 9o days’ notice is not given by the landlord. The Notice can be given physically or on his registered email. In case of any dispute, parties to the contract can approach the Rent Disputes Settlement Centre at the Dubai Land Department. For legal advice and consultation, contact our best property lawyers in Dubai at info@bsb.legal or call +97150 8014003.

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