This is exactly how the RERA rental increase calculator work

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Working of RERA rental increase calculator

The RERA rental increment calculator helps proprietors and inhabitants to decide if a proposed rental increment is permitted or not.

RERA stands for Real Estate Regulatory Authority. With every new RERA Index, the residents of Dubai start wondering if they should expect rental increases or decreases from their landlords. To prevent that, RERA rental increase calculator comes to the rescue. For those who don’t know how the RERA rental increase calculator works, here’s a simple explanation.

What is the RERA Rental Increase Calculator?

To prevent the market from out-pricing itself, the ruler of Dubai, H.H Sheikh Mohammed bin Rashid Al Maktoum in December 2013 issued Decree No. 43 of 2013 to cap unofficial rental increment and illegal rental activities.

This RERA rental calculator works according to the RERA rental index which is updated yearly. The RERA rental increase calculator allows landlords and tenants to input the details of their property and in return, it provides the result that shows if the property rental increase is applicable or not.

NOTE: Landlords are encouraged to check the rental calculator when considering a rental increase to ensure they are working within the confines of the law and inhabitants are advised to check the calculator in the event of a notice to increase their rent.

The RERA rental calculator asks for the following information

  • Whether the property is residential, commercial, industrial or staff accommodation
  • Tenancy contract expiry date
  • Main area of the property (Deira, Bur Dubai which refers to elsewhere in Dubai or whether it is a freehold property)
  • Property type (apartment or villa)
  • Area (community or sub-community)
  • Number of bedrooms
  • Current annual rental amount

However, there are some important aspects which the RERA rent calculator does not take into consideration:

  • Age of the building/unit
  • Building condition
  • Available facilities
  • Floor level

The calculator works by comparing the price of your property with the average prices of similar properties in your area.

When is a rent increase allowed?

A written notice that is notarized must be given by your landlord 90 days prior to your contract renewal only if your property is eligible for a rental increase. It can be handed personally to you, left at your door or sent via registered mail.

If the landlord fails to give you a written notarized notice before the assigned 90 days in any of the means specified above, you are not obligated to accept the rental increase.

What to do in case of illegal rent increase?

Sometimes despite the law and the presence of the rental increase calculator, some landlords try to increase rent even when they are not allowed to.

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In the case, the tenant should try to discuss with the landlord and use the rental calculator as supporting evidence.

If the discussion doesn’t prove fruitful, then the tenant is well within their right to lodge a rental increase dispute with the Rental Dispute Settlement Centre where the matter will be dealt with accordingly.

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