UAE Property: 'Can a landlord raise the rent by any amount?

 

Question: I rent a two-bedroom apartment for Dh45,000 ($12,253) per year. Sadly, my landlord passed away and his properties are now managed by a rental company. They informed me that my rent will increase to Dh65,000 next year, which is a 46 percent hike. Is this legal?

Answer: Before addressing your query, I need more clarity. By "expired," do you mean your landlord passed away, or is he still the owner while a rental company manages the property? Does this company have the legal authority to act on his behalf? It’s important to verify their authorization to handle his properties.

Regardless, there are specific protocols for increasing rent. Any rent change must be communicated in writing (email suffices), with at least 90 days' notice. Rent increases must align with the Real Estate Regulatory Agency's rental calculator; they can't simply be decided by the landlord or managing company. Legally, rent can only be increased by a maximum of 20 percent per year, and this is only permissible if the rental calculator or Decree 43 of 2013 supports the increase. Therefore, the rental company’s requested increase appears to exceed legal limits.

Question: I leased my apartment for Dh75,000 in 2019. During the pandemic, my tenant pressured me to lower the rent to Dh50,000, and I agreed due to personal distress. I decided not to renew his lease later, but he managed to legally renew it at Dh50,000 through Rera. He now wants to renew at Dh55,000, but I’ve requested Dh68,000 because he hasn't paid for chiller services, leaving arrears of Dh100,000. He also hasn’t paid a Dh4,000 Dubai Electricity and Water Authority bill. He has damaged the apartment, denied me access, and refused to provide his visa page for me to contact his employer. He has also sub-let the parking space. How can I proceed with filing a rental dispute?

Answer: Given that your tenant has exploited your vulnerabilities, it would be advisable to take this matter to the Rental Dispute Settlement Committee. You have the option to file a case either online or in person. Filing online is straightforward, but visiting the committee in person at the Land Department in Deira might be better if you have questions. Filing a case incurs a fee of 3.5 percent of the annual rent, which might be reimbursed if you prevail. For online filing, visit the Dubai Land Department website or download the Dubai Rest app, navigate to the rent dispute resolution portal, provide the necessary details, upload the required documents, and pay the fees. If you choose to visit in person, you will find typing and translation services available, as documents must be in Arabic. The staff there can offer further assistance.