Can rent increase take place every year ?

Discussion in 'Dubai property' started by Kind, May 19, 2013.

  1. Kind

    Kind New Member

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    Can anyone please advise on following :

    Article 9 of the law previously contained a two year protection against any increase in rent for the first two years of the tenancy; the amending law removes this protection. This means that rent increases can take place every year, in accordance with the 2009 rent cap and the index of rental values.
     
  2. sajjap

    sajjap New Member

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    Are you sure?

    Hi

    Are you sure?

    I'm just in the process of renewing my tenant’s lease, according to the letting agent, I can't increase the rent for the first 2 years, after the end of the 2nd year there is a cap of 5% maximum that the landlord can increase the rent by. Also, apparently I can't not renew the lease if the tenant agrees to pay the 5% increase, the only way I can get the tenant out is by giving a 12 month notice and only if the property is to be for my own personal use.

    This all sounds ridiculous to me, but the letting agent tells me that that's how it is.

    Saj
     
  3. Kind

    Kind New Member

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    It is conditional. Please read following and visit RERA website :

    quote

    Renewing your contract
    Are landlords allowed to raise rent after just one year? If so, what’s the maximum/minimum amount?
    MV: Landlords are not permitted to raise the rent after just one year if the rent is up to 25 percent below the average rent of similar properties, according to the RERA rent calculator. If the rent is 26-35 percent less than the average, the maximum increase allowed is five percent. If the rent is 36-45 percent less than the average, then the maximum increase allowed is 10 percent. If the rent is 46-55 percent less than the average, then the maximum increase allowed is 15 percent. If the rent is more than 55 percent less than the average, then the maximum increase allowed is 20 percent. (Editor's note: the landlord should give a written notice period of rent change 90 days prior lease agreement expiration.)

    PP: Landlords may increase rent based on RERA rentals caps or what you have agreed during the signing of the tenancy contract. If no increase has been mentioned for the area in which you’re living, the landlord should keep your agreed rent.
    unquote


     
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