Are you renting in Dubai and wondering whether your rent is about to go up? Thankfully, the Real Estate Regulatory Authority (RERA) has put in place guidelines to regulate annual rent increases, ensuring fairness for both tenants and landlords. And the best part? There’s a handy RERA rental increase calculator to help you figure out if a rent hike is even allowed. Let’s dive into how it all works and what you need to know to stay informed.
What is RERA?
RERA, or the Real Estate Regulatory Authority, is part of the Dubai Land Department (DLD). It’s the body responsible for regulating Dubai’s real estate sector, ensuring transparency, fairness, and compliance with the law.
One of its key tools is the RERA rental index, which sets benchmarks for property rental values. This index helps landlords and tenants understand permissible rent increases and ensures the market remains balanced.
What is the RERA Rental Increase Calculator?
The RERA rental increase calculator, launched in 2013 under Decree No. 43, is a tool that allows landlords and tenants to check for permissible rental increases. It’s based on the RERA rental index, which is updated annually.
How does it work? The calculator compares your current rent with average rents for similar properties in your area. Landlords are encouraged to use the calculator before proposing rent hikes, and tenants can use it to check if an increase is legal.
Here’s what the calculator asks for:
- Property type (residential, commercial, industrial, or staff accommodation).
- Tenancy contract expiry date.
- Property location (main area and sub-community).
- Number of bedrooms (for residential properties).
- Current annual rent.
However, some factors like the building’s age, condition, or available amenities are not considered.
How Much Can My Rent Increase By?
RERA’s rental index lays out clear guidelines for how much your rent can increase based on how your current rent compares to the market average:
- No increase: If your rent is less than 10% below the market average.
- 5% increase: If your rent is 11-20% below the market average.
- 10% increase: If your rent is 21-30% below the market average.
- 15% increase: If your rent is 31-40% below the market average.
- 20% increase: If your rent is more than 40% below the market average.
Let’s say you’re renting a two-bedroom apartment in Dubai Media City. If the average rent for similar apartments in 2024 is AED 90,000 to AED 110,000 annually and you’re paying AED 60,000 (about 40% below the average), your landlord can legally increase your rent by up to 20%, or AED 12,000.
How to Use the RERA Calculator in Dubai
Using the RERA rental increase calculator is simple and can be done via the Dubai Land Department (DLD) website or the Dubai REST app. Here’s how:
- Access the Calculator: Visit the DLD website or open the Dubai REST app.
- Choose Your Tab: Options include Title Deed Number, Ejari Contract Number, residential property, or location map.
- Enter Required Details: Provide information like your current rent, tenancy contract expiry date, and property type.
- Calculate: Hit the “Calculate Rent” button to see if a rent increase is applicable and, if so, by how much.
When Can a Rent Increase Happen?
Rent increases can only occur under specific conditions:
- Eligibility: Your rent must be below the market average by at least 11%.
- Notice Period: Landlords must provide at least 90 days written notice before the contract renewal date.
If your landlord misses the 90-day notice period, you are not obligated to accept the increase.
What to Do About Illegal Rent Increases
Unfortunately, not all landlords follow the rules. Some may attempt to impose rent hikes that exceed legal limits or aren’t allowed by the calculator. If this happens:
- Discuss: Share the calculator results with your landlord as evidence.
- File a Complaint: If the issue persists, you can file a dispute with the Rental Dispute Settlement Centre (RDSC).
The RDSC is the official body for resolving rental disagreements in Dubai and ensures that both tenants and landlords abide by the law.
2024 Updates to the RERA Rental Index
Till March 1, 2024, new laws reaffirm that rent increases can only happen once a year during contract renewal. Landlords must adhere to the guidelines set by the RERA index and provide 90 days’ notice. Rental price increases are expected to stabilize this year, with demand for real estate remaining strong but hikes happening at a more gradual pace than in previous years.
Stay Ahead with RERA’s Tools
Whether you’re a tenant or landlord, understanding Dubai’s rental regulations is key to avoiding disputes and ensuring a fair rental experience. Use the RERA rental increase calculator to stay informed and protect your rights.
By staying informed and proactive, you can confidently navigate Dubai’s rental market and make the best decisions for your housing needs. Happy renting!
1. How does the RERA rental increase calculator work?
The RERA rental increase calculator determines if a rental increase is allowed based on the current rent, property location, and market trends. Landlords and tenants can use it to calculate
2. What should I do if my landlord proposes an illegal rent increase?
You can use the RERA rental calculator to verify if the increase is lawful. If it’s not, you can discuss it with your landlord or file a complaint with the Rental Disputes Settlement Centre (RDSC).
3. What happens if my landlord doesn’t provide the 90-day notice for a rent increase?
If your landlord fails to give the required 90-day notice, you are not obligated to accept the rent
4. Are there any additional costs associated with rent increases?
While rent increases are regulated, additional costs like service charges or maintenance fees depend on your tenancy agreement and are not governed by the rental index.
5. Does the calculator account for property condition or building age?
No, the calculator does not consider factors such as the property’s age, condition, or amenities. It focuses solely on location, property type, and average market rent in your area.
6. Can the calculator be used for all property types?
Yes, the calculator can be used for residential, commercial, industrial, and staff accommodation properties.
7. Does the calculator apply to freehold properties?
Yes, the rental increase calculator applies to all rental properties in Dubai, including those in freehold areas.
8. Can the calculator determine rent decreases?
No, the calculator does not indicate rent decreases. It is designed only to determine if a rent increase is permissible.
9. Does the calculator work for short-term leases?
No, the calculator is designed for annual rental agreements and does not apply to short-term leases.
