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Starting April 1, Landlords in Dubai Need Legal Order to Seek Rent Re-evaluation
Landlords must initiate the process through RDC and apply for a case to obtain necessary legal order
Starting April 1, 2024, Dubai landlords are required to obtain a legal order before seeking a rent re-valuation.
Dubai landlords still have the option to apply for a rent re-valuation through the Real Estate Regulatory Authority (RERA) if they believe they are entitled to a higher rental rate than suggested by the updated Rental Index.
However, they must adhere to new requirements set by the RERA, which mandate the attachment of a judgment or legal order to their re-valuation request. This requirement applies to all rent re-valuation requests made from April 1, 2024 onwards.
According to the Ejari portal, landlords must initiate the process through the Rental Dispute Centre (RDC) and file a case to obtain the necessary legal order.
Previously, landlords could apply for a rental evaluation to adjust their rental rates based on the outdated calculator.
This recent change marks a shift from the previous practice where landlords could pay a fee to the Dubai Land Department for rental valuations, as noted by property management firm Allsopp & Allsopp Group.
The updated RERA Rental Index calculator now serves as the sole reference for calculating rental increases, following its update on March 1, 2024. Consequently, landlords are no longer permitted to raise rental prices above the benchmark provided by the calculator.
While landlords retain the option to request re-evaluations, the process for obtaining a revaluation certificate has undergone modifications, according to a statement from Allsopp & Allsopp.
Anisha Sagar, Director of Property Management at Allsopp & Allsopp Group, highlighted the significance of this change, citing that as of the first quarter of 2024, approximately 72,885 rental contracts have been renewed in Dubai, involving 145,770 tenant and landlord decisions.
Given this substantial volume, utilising the RERA calculator as the definitive source for rental adjustments is deemed logical.
The introduction of legal requirements ensures that valuation changes are scrutinised fairly against the updated calculator, providing assurance to both landlords and tenants alike.
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