Dubai Rent Increases - Q&A
Dubai Property Q&A - Rent Increases
Dubai rent increases Q&A with our property experts
Q: Does Dubai have rent caps on the amount of rent that can be charged in the initial lease?
A: No. A Landlord is free to determine the rent he wants to charge in the initial Lease term.
Q: Does Dubai have rent caps on the amount of rent that can be charged when renewing a Lease?
A: Yes, there are rent caps limits when renewing a Lease.
Q: How are renewal rent caps determined?
A: Renewal rent caps are determined based on the rent paid by Tenant in the initial Lease term, compared to the average similar rent of a unit with the same amount of bedrooms in the same area, as determined by the RERA Index.
Q: What are the renewal rent cap limits as determined by Dubai law?
A: If the Tenant was paying:
- 10% or less than the average similar rent — Landlord cannot increase the rent during the renewal period.
- 11-20% less than the average similar rent — Landlord may increase rent by up to 5%.
- 21-30% less than the average similar rent — Landlord may increase rent by up to 10%.
- 31-40% less than the average similar rent — Landlord may increase rent by up to 15%.
- Over 40% less than the average similar rent — Landlord may increase rent by up to 20%.
Q: Where can I find the RERA increase calculator?
A: The calculator can be found on the Dubai Land Department's website at www.dubailand.gov.ae (eServices).
Q: Must notice of a rental increase be given to Tenant and when should it be given?
A: Yes, notice of a rental increase must be given to a Tenant at least 90 days prior to the expiration of the Lease term.
Q: What happens if Landlord fails to give 90 day notice of an increase?
A: If the Landlord misses the 90 day notice deadline, he cannot increase the rent during the next renewal period.
Q: How can rental increase Notice be given to Tenant?
A: Notice of the rental increase may be given formally (through Notary Public or Registered Mail) or informally (email or letter), with proof of receipt.
Q: Must the Notice contain specific language?
A: No, the Notice does not require specific language. It can be as general as to say "There will be an increase of ____%, as per the RERA Index."
Q: what can Tenant do if Landlord wants to increase the rent above the rent caps?
A: If Landlord attempts to increase the rent beyond the legal limits, Tenant may file a complaint with the Rental Dispute Settlement Centre.
Q: Do the renewal rent caps apply to the Dubai International Financial Centre and other Free Zones?
A: Yes, the rent caps apply to the DIFC and all other Free Zones in Dubai.