Can You Ignore a Landlord’s Rent Increase Demand If No 90-Day Notice Was Given?

In the bustling city of Dubai, where the real estate market is dynamic and ever-evolving, tenants often find themselves navigating the complexities of rental agreements and regulations. A common question among renters is whether they can ignore a landlord's rent increase demand if they haven't received a 90-day notice.

Let's delve into this topic, alongside understanding the permissible rent increase limits and the fees agents or middlemen can charge annually.

Understanding the 90-Day Notice Rule

In the UAE, particularly in Dubai, the law is clear regarding rent increases. According to Decree No. 43 of 2013, landlords must provide tenants with at least 90 days' notice before increasing the rent.

This notice must be given in writing and should explicitly state the new rent amount and the date from which the increase will take effect. If the landlord fails to provide this notice, the tenant has the right to reject the rent increase and continue paying the old rent amount.

Can the Landlord Increase Rent Beyond the Rental Index?

The rental index, managed by the Real Estate Regulatory Agency (RERA), serves as a benchmark for determining acceptable rent increases. The RERA index is designed to maintain market stability and protect tenants from unreasonable hikes. Here are the key points:

• 0% Increase: If the existing rent is up to 10% below the market value.
• 5% Increase: If the existing rent is 11-20% below the market value.
• 10% Increase: If the existing rent is 21-30% below the market value.
• 15% Increase: If the existing rent is 31-40% below the market value.
• 20% Increase: If the existing rent is more than 40% below the market value.

Landlords are prohibited from increasing rent beyond these specified limits as per the RERA rental index. Therefore, tenants can confidently challenge any rent hike that exceeds these thresholds.

Administrative Fees by Agents or Middlemen

When it comes to administrative fees charged by agents or middlemen, the UAE has set guidelines to ensure fairness. The annual administrative fees should be clearly stated in the tenancy contract. Typically, these fees cover the cost of services such as maintenance, documentation and contract renewal processes.

How Much Can Agents Charge?

While the law does not specify an exact amount, it is customary for agents to charge between 2-5% of the annual rent as administrative fees. This fee is subject to the agreement between the landlord and the agent, and it should be transparently communicated to the tenant.

What Should Tenants Do?

Verify Notices: Always ensure that any rent increase notice is received at least 90 days prior to the renewal date.
Check the RERA Index: Use the RERA rental index to verify the legality of the proposed rent increase.
Review Administrative Fees: Ensure that the administrative fees charged by agents are reasonable and agreed upon in the contract.

Conclusion

Navigating rent increases in Dubai requires a clear understanding of your rights as a tenant. The 90-day notice period is crucial, and any increase must align with the RERA rental index. Additionally, ensure that administrative fees charged by agents are fair and transparent.

By staying informed and proactive, tenants can safeguard their interests and enjoy a hassle-free renting experience in one of the world's most vibrant cities. 

For any enquiries or information, contact ask@tlr.ae or call us on +971 52 644 3004. Follow The Law Reporters on WhatsApp Channels.