Rising Rents Amid Declining Maintenance – Can Tenants in the UAE Dispute Increases?

In the UAE's rapidly evolving real estate market, tenants often face the challenge of rising rents, sometimes in properties where the quality of maintenance has significantly declined.

This dilemma is particularly pressing in cases like that of a long-term Dubai resident who has lived in the same three-bedroom apartment since 2009.

Despite consistent rent hikes, the condition of the building, primarily used for commercial purposes, has deteriorated over time.

This decline in maintenance has left tenants, such as a long-term Dubai resident who has lived in the same three-bedroom apartment since 2009, questioning whether they can dispute these increases based on the poor upkeep of the property.

Consider, for instance, the resident whose rent was originally Dh100,000 in 2020. The impact of Covid-19 led to a temporary reduction to Dh90,000 in 2021.

However, as the economy began to recover, the rent started climbing again -- Dh92,250 in 2022, Dh98,000 in 2023, and Dh107,000 in 2024 -- resulting in a 15 per cent increase over two years.
This financial burden has been compounded by a decline in the building's upkeep.

Amenities such as the gym and swimming pool are non-functional, and issues including broken air conditioning, a damaged roof, uncleaned common areas, insect infestations, and a lack of security have become common.

The tenant's repeated requests to maintain the rent at previous levels have been ignored, with management pushing forward with increases despite the building's deteriorating condition.

For tenants facing similar situations in the UAE, the decision to stay or move becomes critical.
While relocating to a better-maintained property might involve higher rent, the improvement in quality of life could be worth the extra cost.

However, for those who choose to stay, disputing further rent increases is an option. The Dubai Land Department's Rental Dispute Centre (RDC) offers a platform for tenants to challenge these hikes, although the outcome is not guaranteed.

The Dubai Land Department's rental index is a key factor in determining rent increases, yet it does not account for the state of a building's maintenance or the availability of amenities.

This means that even if a tenant presents a strong case, a judge may still side with the landlord if the increase aligns with the index.

Tenants must, therefore, carefully consider the trade-off between accepting a rent hike in a poorly maintained property or pursuing a potentially uncertain legal challenge.

Weighing the Options: Stay or Move?

For tenants in similar predicaments, the decision to stay or relocate is critical. Moving to a better-maintained property might mean paying more, but it could offer a significant improvement in quality of life.

Conversely, those choosing to stay should consider legal action, though it comes with no guarantees. The Dubai Land Department's rental index, which guides rent increases, does not account for a building's maintenance or amenities, making it uncertain whether a judge would rule in favour of the tenant.

Key Considerations for Tenants

In these situations, tenants must continue paying rent for any duration they remain in the property to avoid complicating legal proceedings.

Clear communication with the landlord is also advisable, though it may lead to tense interactions.
The outcome of any legal dispute will ultimately rest with the judge, and tenants should be prepared to act swiftly following a judgement.

If the decision is unfavourable, an appeal remains an option. Navigating rent disputes and notices to vacate requires tenants to be vigilant, legally informed, and prepared to act decisively.

Whether dealing with poor maintenance, unexpected rent hikes, or legal notices, the key is to balance financial considerations with the quality of living and to understand the legal avenues available for protecting one's rights.

In the competitive UAE property market, these decisions are not just about economics but about ensuring a living environment conducive to well-being and peace of mind.