Five Ways to Deal with the Rent Increase in Dubai and to Avoid the Conflict

With the prices of property in Dubai are continuously rising, it is propelling homeowners to look at the amount their tenants are paying to them. Most homeowners are compelled to keep their renters on the same prices due to the reason being bounded in a legal contract where others are forcefully evicting their tenants or compelling them to charge the illegally high rent. This problem is continuously increasing and roperty market of Dubai is booming and there is a 17% growth in residential rents in 2013 and there is expected to be 15% increase in the forthcoming months.  If you are a tenant and living in the fear of the day when your rental contract wresulting in the severe conflict between the tenant and landlord.

Reportedly, the pill be up for the renewal, and you will have to bear unexpected 50% increase then you should not worry at all. You should not feel helpless any more against the forces of the Dubai’s increasing real estate market.

Here are a few tips to deal with a rent increase in Dubai and to avoid the conflict.

See, whether the rent raise in line with the rent calculator?

Though it’s quite puzzling to understand the new laws introduced last year for the rental caps but it would be rather better to spare 10 minutes to understand how it works to have a better and more conversant discussion with your landlord. Rental calculator put both parties including renters and landlords on the right track. The rental calculator verifies the maximum your rent could be increased by. As the rental calculator gets updated every three months, keep checking this and make sure you have informed discussion with your landlord.

What’s the latest rent cap in Dubai?

  • If your current annual rent is 11 to 20% lower than the average rent for a similar property, there would be a 5% increase.
  • If your current annual rent is 31 to 40% lower than average rent for a similar property, there would be a 10% increase.
  • If your current annual rent is 31 to 40% lower than average rent for a similar property, there would be a 15% increase.
  • If your current annual rent is 40% lower than average rent for a similar property, there would be a 20% increase.

Have you been given enough notice by your landlord?

Before your landlord increases the prices, he is ought to give you 90 days notice prior to your contract renewal. The notice will be validated only when it’s signed by tenant so make sure you read all related documents carefully before signing them.

Ensure your Landlord is not budging?

Your landlord has no right to increase the rent prices above the percentage allowed by the rent calculator, in case if he does, you have all the rights to take claim to the Rental Dispute Settlement Centre at the Land Department. If you don’t want to get into lengthy paper work to the bureaucracy or you have good relation with your landlord then you can sort out the matter mutually.

What if you try escalating and your landlord says get out or pay-up?

If your landlord threatens to evict you over your rejection to pay the unlawful rent increase, the law is very clear for this devastating situation. The landlord has right to evict the tenants only when they’re given 12 months notice and they plan on reselling the apartment. The only other reason, landlord can evict tenant only if landlord or their family immediately intent to move into the property. Otherwise, landlord has no right to rent out the property to another tenant for two years.

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