# Rental Increase within 3 months of tenanct renewal



## RandmTask (Apr 29, 2014)

Hi,

I have received a letter saying that my rent is to go up from 97,750 to 110,000 but the maximum allowed according to RERA calculator is 107,525 (10% increase). They informed me of this by courier 4 months before rental renewal

They did the same last year where they tried to lift the rent by an extra 60,000dh (From 85,000 to 145,000). Again, within 3 months of renewal after many angry exchanges I managed to get the RERA defined increase (From 85,000 to 97750 - 15% increase). The company owns most of the apartments in the building and they bully most of the occupants into unfair rent increases.

My question is, it is now less than 3 months until the tenancy renewal, can they still increase the rent at all since the communicated an illegal rent increase? Or should I just counter with 107,525?

cheers!


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## TallyHo (Aug 21, 2011)

It is a grey area, isn't it?

I suspect RERA will tell you to accept the legally allowable rent increase, up to 107,000. But you can call RERA and find out if the landlord proposed a higher rent increase (illegal) then the negotiations are null and void and contract automatically renews on the same terms and conditions and rental amount. Could be interesting. 

Is the grey area


RandmTask said:


> Hi,
> 
> I have received a letter saying that my rent is to go up from 97,750 to 110,000 but the maximum allowed according to RERA calculator is 107,525 (10% increase). They informed me of this by courier 4 months before rental renewal
> 
> ...


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## adrianh (Sep 20, 2008)

I was under the impression the landlord had to advise any change in contract T&Cs 12 months in advance. If the landlord intended to increase the rent should they of have to notified the tenant that the rent will be increased in line with the RERA index. The landlord cannot increase the rent above what is stated by RERA. But check it yourself either with RERA or online.


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## The Rascal (Aug 6, 2014)

And rental prices are falling too. Beggers belief doesn't it.


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## adrianh (Sep 20, 2008)

A lot of talk about rents going down but I don't know anybody who is actually paying less rent than last year without moving to a new location


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## The Rascal (Aug 6, 2014)

adrianh said:


> A lot of talk about rents going down but I don't know anybody who is actually paying less rent than last year without moving to a new location


Just talking about new rents, not extensions.


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## Gavtek (Aug 23, 2009)

adrianh said:


> A lot of talk about rents going down but I don't know anybody who is actually paying less rent than last year without moving to a new location


That happened last time there was a crash. Landlords completely refusing to reduce rent by a single fil despite identical apartments in the same building going for AED 50k less and then having their apartment empty for over a year, but still utterly convinced that they did good business by not conceding to the tenant.


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## adrianh (Sep 20, 2008)

If you are prepared to move every year you can always find a deal, same applies to most things in Dubai if you want to put in the effort, to find the deals they are there I just can't be bothered with all the hassle to save a few dirhams. In the end you always pay in Dubai.


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## QOFE (Apr 28, 2013)

adrianh said:


> I was under the impression the landlord had to advise any change in contract T&Cs 12 months in advance. If the landlord intended to increase the rent should they of have to notified the tenant that the rent will be increased in line with the RERA index. The landlord cannot increase the rent above what is stated by RERA. But check it yourself either with RERA or online.


According to RERA the landlord has to inform in writing about the increase 90 days before the end of the current tenancy agreement.


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## A.Abbass (Jun 28, 2014)

I don't understand the logic of some landlords, if someone does please enlighten me.

Today my sister landed in Dubai and we were looking in a building in DIFC, we viewed 2 identical apartments, one is being let for 200K and the other for 250K. Isn't the 250K guy virtually losing 20K every month if he leaves his apartment vacant ?


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## Gavtek (Aug 23, 2009)

Yes he is, but if he accepts 225k, then in his view he is making himself look weak and losing face by letting you have 25k of his money. No-one respects weak businessmen obviously.


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## A.Abbass (Jun 28, 2014)

Gavtek said:


> Yes he is, but if he accepts 225k, then in his view he is making himself look weak and losing face by letting you have 25k of his money. No-one respects weak businessmen obviously.


But nobody knows them, and I might not even meet them in person, it's all through agents. And he won't even get 225K unless all other 200K apartments get rented first, more loss of money imho.


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## BBmover (Jun 15, 2013)

While it is 90 days for renewal increase also check there isn't an addendum in your contract stating 2 months? This we found out at renewal with guidance from RERA. They do need to abide by the RERA calculator and you have every right to offer that amount. 
Talk with RERA as they will support you with how to approach company. RERA and Rental Dispute Centre were great with advice for us on wording emails to LL to gain an extension on our eviction notice which was issued mid contract, which we won.


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