How is the cost of rental housing in Dubai determined, can the landlord independently increase it, and who controls the prices of apartments and villas? Let’s look at the features of this process.
Features of Formation of Rental Prices in Dubai
If you are considering renting a property in Dubai for a long period or are already renting a property in the Emirates, you may have encountered a situation where your landlord offers you a rent increase. However, such increases may be illegal.
Therefore, it is important to understand your local rental laws so you know when your rights are being violated and how to protect your interests.
Rent Regulation in Dubai
One of the key advantages of renting a home in Dubai is that all long-term rental relationships are supervised by the Real Estate Regulatory Agency (RERA). When entering into a long-term lease agreement, it needs to be registered in the Ejari system launched by RERA for it to be legally binding.
In Dubai, there are laws that regulate the relationship between the landlord and tenant, with the most important one being No. 26 of 2007. In the future, the lessor can increase the rate no more than once a year, and not at any time, but only when extending the lease agreement.
If the landlord decides to increase the rent, he must notify the tenant at least 90 days before the end of the current lease. If the tenant does not agree to the increase, he must notify 60 days before the renewal date.
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It is important to note that Dubai law regulates the process of increasing the rental price, but the starting rate is agreed upon by the landlord and the tenant independently. Therefore, before signing a contract, it is important to ensure that the price offered meets market standards.
To simplify the process of calculating rent in Dubai, owners and tenants are provided with a special service – the Rent Enhance Calculator, available on the DLD website and in the Dubai REST application.
