Are you planning to move from your apartment or renew your lease in Dubai? You can use the RERA calculator to determine how competitive the rates are in your neighborhood.

It is essential to understand, how to utilize the Dubai rent calculator before renting out a property. After the pandemic, rents have been on the pitch in Dubai.

The Dubai Land department’s Real Estate Regulatory Agency (RERA) guards the tenant-landlord relationship.

What is RERA?

RERA is responsible for maintaining and updating the ‘Rental Price Index’ in Dubai, which constitutes a database that documents the average rental prices for all types of property in Dubai. This index is then updated on a yearly basis in order to apply to all the rental transactions in Dubai. The rental index allows users to calculate the possible rent increase and also to find the average market rent of any given area in Dubai. This is a free service that can be used by any user and thus helps to maintain both transparency and a fair balance in the market in matters concerning rental increases.

 

The rent calculator helps understand the pricing restrictions. Therefore, you can point out this issue to the landlord if they overcharge your rent each year. 

To calculate the rental index, Visit the RERA website and enter the specified details like property type, current annual rent, contract end date depending upon each category.

 

According to the Rent Control Act, a tenant has primary rights, including the right against unfair eviction, the right to pay fair rent, and access to essential services, among others. Without proper knowledge about legal protections, tenants can be victims of exploitation.

 

For those staying in rented accommodation, you must be aware of the rights and responsibilities of a tenant. Some landlords may try to charge higher rent, take advance payments, infringe on the tenant's privacy, or force eviction from the house for no valid reason.

When can a landlord increase the rent?

• No additional rents are permitted; the rental rate must be less than 10%  below the market standard.
• A maximum 5% rent increase is permitted, but it must be between 11% and 20% less than the standard market rental rate.
• A 10% rent increase is permitted, but it must be between 21% and 30% less than the market average.
• A 15% rent increase is permitted, but it must be between 31% and 40% less than the average market rental rate. If the rental rate is more than 40% below the market average, a maximum rent increase of 20% is permitted.

Rights of the tenant

Additionally, the tenant is entitled to refer any conflicts to the Rent Control Court without being questioned. Legal heirs of the tenant are also tenants under the Rent Control Act. They are privileged to all the rights of a tenant. The tenant has the right to avail notice period if the owner asks for termination of tenancy. They also have the right to evaluate the property's Energy Performance Certificate (EPC).

In case of a rental increase, the landlord is required to provide the tenant with a ninety days’ notice before the expiry of the tenancy notifying of the rental increase.

The landlord is not allowed to raise the rent, if this mandatory notice period has not been allowed to the tenant. Further, the rental increase should also be justifiable subject to the applicable percentage of the increase as stated in this article. When the landlord does not follow these provisions, the tenant is allowed to reject the rental increase. Further, the tenant should file a complaint before the Rental Dispute Settlement Centre (RDSC) if  amicable resolution is not possible.

The tenancy or rental agreement describes all the obligations and rights of the tenant and owner. It must be printed on stamp paper with the state government's recommended value. The agreement should list all the terms and conditions of tenancy. It needs to be signed by both landlord and tenant in the presence of two witnesses, who will also sign the agreement. The rental agreement must be registered at a local Sub-Registrar office.

 

The Rental Increase Calculator is an electronic service developed by Dubai Land Department (DLD) to calculate rent increase percentages following Decree No. (2) for 2011. The service specifies the increase based on the average decline in the region's rental value, depending on the specifications of the unit in question, including its use, location, number of rooms, and a variety of other parameters.