How to Deal with Illegal Rent Increases in Dubai

Imagine you are comfortably settled in your apartment. Suddenly, your landlord informs you that your rent is going up by 20% next year. No formal notice, no explanation, just an ultimatum. Unfortunately, situations like this aren’t rare in Dubai despite its robust rental regulations. This blog will provide actionable solutions if you are grappling with an illegal rent hike.

What Does The Law Say?

Dubai’s rental market is governed by Law No. 43 of 2014, which clearly outlines the rules for rent increases. Any hike must comply with the Rental Index set by the Real Estate Regulatory Authority (RERA), which assesses market trends annually. The law says:

If your rent is less than 10% below the market average, no increase is allowed.

If it is 11% to 20% below the market average, the landlord can raise it by up to 5%.

If it is 21% to 30% below the market average, the increase can go up to 10%.

If it is 31% to 40% below the market average, the maximum increase is 15%.

If it is more than 40% below the market average, the landlord can raise it by up to 20%.

A landlord must:

• Provide a 90-day notice before renewal of the contract at the new rental price.
• Justify the hike using RERA’s guidelines.
• Give tenants enough time to discuss or prepare for changes.

Related blog: How Much Rent Can Be Increased in Dubai in 2024?

Your Rights and the Way Forward

You don’t have to accept illegal rent increases. Dubai’s tenant-friendly regulations are designed to protect you. Here is how you can deal with the situation:

Verify the Legality of the Increase

Landlords cannot raise rents on their own. Check RERA’s Rental Index Calculator online to determine whether the proposed hike aligns with market standards. This tool compares your current rent to the average rates in your area, factoring in property type and location.

Review Your Tenancy Contract

Your tenancy contract is your primary shield. Ensure it explicitly states the terms for rent adjustments and renewal. You have grounds to dispute if the landlord hasn’t followed the agreed-upon conditions or violated the 90-day notice rule.

Communicate with Your Landlord

Before taking things further, try having a conversation. Politely highlight any issues and support your points with RERA’s rules. Sometimes, landlords may not be aware of the rules and might be open to adjusting their demands.

File a Complaint with RERA

If discussions don’t yield results, take your grievance to RERA through the Rental Dispute Centre (RDC). Register your complaint online or in person and pay the necessary fees. The Rental Dispute Settlement Centre (RDC) charges fees based on the type of case:

Rental Claims, Evictions, Reconstructions, and Lease Renewals

Fee: 3.5% of the annual rent.

Minimum: AED 500.

Maximum: AED 20,000.

Financial Claims

Fee: 3.5% of the amount claimed.

Minimum: AED 500.

Maximum: AED 15,000.

Additional Charges

Power of Attorney Registration (if needed): AED 25.

Service Fee: AED 100.

Knowledge Fee: AED 10.

Innovation Fee: AED 10.

Real Estate Services Trustees Centre Fee (if applicable): AED 130 + VAT.

Present all necessary documents, like your tenancy contract, proof of payment, and any written communications with the landlord.

The RDC will review the case and provide a legally enforceable decision, usually within weeks. Most importantly, landlords who attempt to increase rent illegally risk facing fines and reputational damage.

Please read: A Comprehensive Guide To The Role Of RERA In Dubai

Seek Mediation or Legal Advice

If you find the RDC process difficult, hire a legal advisor or mediator. Many firms in Dubai specialise in tenancy disputes and have the expertise to guide you through the process efficiently. Their fees may be an additional expense, but they are worth the peace of mind over the long run.

How to Prevent Such Issues in the Future

It is always better to avoid disputes than resolve them. Here are some tips to stay proactive:

• Regularly check updates to Dubai’s rental laws and RERA guidelines. 
• Work with established property management companies known for adhering to regulations.
• Keep copies of every communication, from email exchanges to WhatsApp messages. These can be vital in disputes.
• The RERA website and app offer tools and advice to help tenants navigate the rental market confidently.

Final Thoughts

Illegal rent increases can be frustrating but not impossible to handle. With the right information and tools, one becomes an effective advocate for him/herself and a protector of his/her rights. The law in Dubai is designed to enforce landlords' adherence to the rules, so it is essential not to give up. If you face an unfair rental increase, you must take strong action.