Dubai Rents: Tips for Tenants to Negotiate Unfair Hikes

Dubai Tenant Explores Negotiation Options Amid Rent Hike Notice

A Dubai-based tenant recently received a notice for a rental increase and believes it to be unjust. With the introduction of a smart rental index in Dubai, the tenant seeks guidance on negotiating a better rate.

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Under Article 1 of Decree No. (43) of 2013, the permissible rent increase hinges on the average rental value of similar properties in the area. Key points include:

• No increase if the current rent is up to 10% below the average.
• A 5% increase if the rent is 11% to 20% below average.
• A 10% increase if the rent is 21% to 30% below average.
• A 15% increase if the rent is 31% to 40% below average.
• A 20% increase if the rent is over 40% below average.

The average rental value is determined by the Rent Index of the Emirate of Dubai, approved by the Real Estate Regulatory Agency (RERA). RERA also governs rental increases in line with economic conditions.

Tenants are encouraged to negotiate terms with landlords at the time of contract renewal. If an agreement cannot be reached, the tribunal can intervene to establish fair rent based on established criteria.

Landlords must provide written notice of any rent increase at least 90 days before the contract renewal date. In disputes, tenants can approach the Rental Dispute Centre for resolution.

Ashish Mehta, founder of Ashish Mehta & Associates, emphasizes that tenants should familiarize themselves with the RERA index to effectively negotiate rental terms. For more information, visit Ashish Mehta & Associates.

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