Understanding Rental Regulations in Dubai: Balancing Landlord and Tenant Rights
Navigating the intricacies of landlord and tenant relationships in Dubai involves addressing critical issues such as rent increases. This article aims to shed light on the regulations surrounding this matter, offering valuable insights for both landlords and tenants to better comprehend their rights and opportunities.
The Frequency of Rent Increases
In Dubai, landlords are bound by certain restrictions when it comes to increasing rent. Once a tenancy contract is in place, landlords cannot arbitrarily raise the rent at their discretion. Instead, they are permitted to increase the rent only once a year, and this adjustment can only occur during the contract renewal. Tenants are entitled to the fixed rent value stated in their tenancy agreement throughout the contract period. Any attempts by landlords to alter rates during the contract period are considered unlawful, providing tenants with grounds to file complaints and protect their rights.
Moreover, landlords are obligated by law to provide tenants with a notice of their intention to increase the rent at least 90 days before the contract expiry date. Failure to adhere to this time frame renders the landlord ineligible to revise the rent during the subsequent tenancy agreement renewal. The adjustment can only be considered at the next contract renewal date.
Rent Increase Caps in Dubai
The next crucial aspect involves the cap on rent increases allowed in Dubai. Landlords have limited freedom in determining the rate, as any adjustments must align with local legislation. The legislation establishes a percentage cap based on the current rental-benchmarking rate. This provides a clear framework, with percentages ranging from 0% to 20%, depending on the property's rental rate compared to the average market rental rate.
Rent Control and Legislation
Dubai does regulate rent control, but it is essential to distinguish between the initial tenancy contract and existing tenancy relationships. Landlords have the freedom to set rental prices for the initial tenancy contract without regulatory intervention. However, existing tenancy relationships are subject to rent control, and legislation such as Law No. 26 of 2007, Law No. 33 of 2008, and Decree No. 43 of 2013 outline the rights and obligations of both landlords and tenants in this context.
Assured Shorthold and Assured Tenancy
Differentiating between assured shorthold and assured tenancy is crucial. Assured tenancy involves long-term leases of at least 6 months, mandatorily registered with EJARI. On the other hand, assured shorthold tenancy is short-term, with no registration requirements and rental increases are not regulated.
In conclusion, understanding these regulations is vital for both landlords and tenants. At Taw-theeq, we ensure adherence to the law in handling rental issues, providing guidance for hassle-free solutions. Contact us for any rental-related concerns, and we are here to offer follow-up and legal advice. If you have any questions or concerns feel free to reach us a Whatsapp message.
