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Ask Louise – Eviction and Rent Increase

ask louiseQuestionI moved to dubai in 2012 & my apartment rent was 50K. Next year the landlord increased to 55K. This year again he hiked to 65K. I have 3 queries:-

1) Is there a law (not sure if its 26 or 33) that a landlord can only hike at 2 years interval. If so, how effective is it?
2) If I opt for rent according to RERA rental calculator, the landlord is threatening that he will put a clause that contract is non-renewable and I will have to vacate next year.
3) Could you also advise any official website for the above.

AnswerOur team of experts at 1Step Properties advise the following

Rent Increase

With regards to rent hikes only every 2 years this was the case before but now with the below law, you can change the price of the rent after the first year with  no obligation for 2 years interval.

According to Decree No. 2 of 2011 on rentals in the Emirate of Dubai, the landlords can increase the rent as below.
The maximum rent increase percentage of property units in the Emirate of Dubai leased before the enforcement of this Decree shall be as follows:

A. There should not be any rent increase, if the rent for the real estate unit is up to 10 per cent below the average similar rent.
B. If the rent value was 11% to 20% less than the average similar rent; the maximum rent increase shall be equal to 5 per cent of such value.
C. If the rent value was 21%  to 30% less than the average similar rent; the maximum rent increase shall be equal to 10 per cent of such value.
D. If the rent value was 31% to 40% less than the average similar rent; the maximum rent increase shall be equal to 15 per cent of such value.
E. If the rent value was less than 40% of the average similar rent; the maximum rent increase shall be equal to 20 per cent of such value.

Eviction

Landlord may demand eviction of tenant upon expiry of tenancy contract limited to the following cases:
a. If the owner wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licenses are obtained.

b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is to be submitted to this effect.

c. If the owner of the property wishes to recover the property for use by him personally or by his next of kin of first degree provided that he proves that he does not own a suitable alternative property for that purpose.

d. If the owner of the property wishes to sell the leased property. And for the purpose of clause (2) of this Article, landlord must notify tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.

So the Landlord may demand eviction to the tenant but ONLY in these cases. If the Landlord is using this excuse just to scare the Tenant and is not in the conditions of the decree, the Tenant can report the Landlord to RERA Rental Commitee and get compensation.

Official Website

he official website for the above is the one from RERA:
For the Laws and Regulations: http://www.dubailand.gov.ae/English/Forum/EngLawsAndRegulations.aspx
For the rental index:
http://www.dubailand.gov.ae/English/eServices/RentalIncreaseCalculatorEN.aspx



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