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Tenant’s Guide On Managing Increased Rent In UAE Real Estate

UAE Real Estate

Tenants looking for residential spaces in Dubai can be presented with a wide variety of options since the market of UAE Real Estate is rather active. However, along with the joys of searching for the perfect home, tenants must also ensure that they understand their rights and especially on the issues related to rent hikes.

Overview Of The UAE Real Estate Law

The rights of landlords and tenants in Dubai are protected by the Dubai Rental Law, which was created to formalise interactions between both parties.

Rent increase is another important area regulated by this law, guaranteeing protection of property for rent in Dubai and interests of both parties.

Rent Increase Guidelines

The legal aspects concerning the renting of houses in Dubai show that while the landlord is bound by the law to possibly or try to raise the rent after a year or 12 months of the tenancy they are fully within their authority to do so. This cannot be done in any way; in fact it has to fulfill certain guidelines set by the authorities mainly related to the Regulatory Agency (RERA) in the UAE Real Estate.

Notice Periods

Another feature is that a landlord is also under the legal obligation not to increase the rental charges without providing a tenant a 90 days’ written notice of his intention to increase the rental charges. This timeframe also provides tenants enough time to consider the intended changes, seek advice and make necessary preparations. Such notice periods help to protect tenants from being shocked by changes to their rental responsibilities.

UAE Real Estate

RERA Rent Index

However, any increase in rent sought by the landlord must not exceed the Rent Index as provided by RERA. This index helps in establishing the standard rental prices in relation to such factors as property location, size, and additional facilities. Tenants are protected from unreasonable rent increases by state laws that require landlords to propose rent that is justified according to the RERA calculator index.

Balancing Interests

All in all, the Dubai Rental Law is yet again an attempt at achieving the unity of opposing forces and creating a stable and predictable rental environment for both landlords and tenants. As such, it can be seen that through following certain rules and regulations as follows, both the parties can exercise rental agreements in full peace as recognition of their respective rights.

Tenant Strategies

For tenants who do not want to be caught unguarded when faced with a possibility of a rent hike, it is important to ensure that they do their homework regarding the available real estate brokers in Dubai, market rates and rental fees in their area. Such information can enable the tenants to negotiate with the landlords and make the right choices in warding off adverse housing circumstances.

Dispute Resolution

In their favor, the landlords can at times increase the rent without consent of the tenants, in case of a dispute the tenants may seek the services of the Dubai Rental Dispute Settlement Centre (DRC).The DRC also provides a fair platform for addressing complaints concerning rents and other breaches of tenancy agreements such as rent hikes. Tenants can solicit for help from the DRC in case of violation of their rights or any other issue that they feel has not been handled fairly from the respective landlord.

UAE Real Estate

Economist Views On The Economic Factors Causing Rent

Realizing the various factors that surround any issue on rent increase is very vital so as to make necessary preparations. Several key factors contribute to fluctuations in rental prices in UAE Real Estate:

●  Market Demand And Supply: This means that the business of renting rooms or accommodations is crafted majorly by the balances of supply and demand for rental rates. During these times of particularism, landlords may look at tripping supply and demand into increasing rent, as a result implementing an increase in rent. On the other hand, when there is so much competition within the sites for rent, for instance when all the shops for retail business are available for let, or during an economic downturn, the tenant will have the bargaining power to negotiate for low rent fees.

●  Inflation Rates: This is because when there is inflation, cost of living within a community or country will be high and this includes the cost of housing. Some of the causes of change in the rental price include inflation whereby landlords may increase the price of rent to cover for instance, cost of maintaining the house, cost of bills, and also additional aspects regarding buying property in Dubai.

●  Economic Growth: Many are the businessmen and expatriates who are being pulled by Dubai’s fast growing economy to set base there, also the demand for rentals. As businesses prosper, GDP steadily increases as would consumption, leading to increased demand and consequently pressure on landlords to increase rent to compensate for a purported increase in demand for tenancies.

●  Interest Rates: This implies that variabilities in the interest rates will affect the money necessary for mortgage financing among the owners of the Dubai properties. Other challenges include situations under which the going rates of interest rise and the landlords may want to cover the higher costs by adjusting the rental charges upwards.

●  Regulated Rent Increases: Another regulatory measure that was put in place by the Dubai Rental Law is the regulation of rent increase where the law only allows limited increases in the number of times and the extent to which the rent can be increased in order to avoid owners placing unreasonable hiked up charges. The law also ensures there is a reasonable annual percentage increase capped and that landlords’ notification to their tenants must not be done at very short notice to ensure that everyone gets a fair chance to find another house to rent.

Wrapping Up!

It is evident that while the landlords in Dubai can hike the rent, they are supposed to exercise that legal right in line with the Dubai Rental Law and RERA requirements. In this way, tenants being informed about the process and the ways of rent increasing can guarantee that overall relations with the landlords are friendly and serve the interests of both parties within the context of the rapidly developing UAE Real Estate market.

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