# Rental increase after 1 year



## Fletch1969 (Nov 12, 2011)

There was a thread about this a little while ago, but since things are fluid in this city, can't hurt to ask the question again as things may have changed..

I'm a fortnight from the expiration of my 1st year contract in the marina and the landlord has sent me a text today requesting a 10% increase given that the rentals in this building/area have gone up 21%, (from 70 to 85, but he will accept 77).

RERA calculator says he's not entitled to an increase and I'm wondering what my position is. Don't have the existing contract with me, (it's in my office) but my problem is I'm basically going to be in KSA for the next 6 weeks or so and on that basis not really in a position to get into a fight over it.

Can he increase the rent? Does that depend on my contract, or is there an overarching law on this? Tempted to offer a compromise between the 70 I think I should pay this year, (I thought rentals couldn't increase between year 1 and 2) and the 77 he wants. However, if we all do that, we'll all get screwed and we'll be back to where we were a few years ago..


----------



## m1key (Jun 29, 2011)

Any increase has to be in line with the rental increase calculator. He also has to give you 3 months notice before the end of your contract expiry of any increase/change of terms. This is unless you have something in your existing contract that specifically contradicts this.

That aside. It depends how much you want to stay and how much hassle you want.


----------



## msbettyboopdxb (Mar 22, 2009)

I had a long arguement with my landlord last week about this. I printed the rera calculator stuff and he went on and on about how rents have gone up, bla, bla, bla. I went on and on about the value of a good tenant who has been in the building a long time. In the end, I said I wasn't trying to have a fight or go to court; just reach a reasonable raise and we came to a figure both parties found satisfactory. 

If you have the time and energy, you could try that out. I'm still confounded how rents can go up when there's an oversupply of buildings.


----------



## m1key (Jun 29, 2011)

lafani said:


> d try that out. I'm still confounded how rents can go up when there's an oversupply of buildings.


Greed, desperation and belief in the hype usually...


----------



## Chocoholic (Oct 29, 2012)

Speculation drives rents up, it's infuriating and greedy landlords fall for it every time. Renters have to stand their ground.


----------



## Mr Rossi (May 16, 2009)

lafani said:


> I'm still confounded how rents can go up when there's an oversupply of buildings.


Because people don't stand their ground when illegally trying to increase the rent.


----------



## Ogri750 (Feb 14, 2008)

My landlady gave me notice of a rent increase of more than 30%.

I sent her this:


*According to Decree No. 2 of 2011 on rentals in the Emirate of Dubai, the landlords can increase the rent as below.
Article (1)

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 25% below the average similar rent.

B - If the rent value was 26% to 35% less than the average similar rent; the maximum rent increase shall be equal to 5% of such value.

C -If the rent value was 36% to 45% less than the average similar rent; the maximum rent increase shall be equal to 10% of such value.

D - If the rent value was 46% to 55% less than the average similar rent; the maximum rent increase shall be equal to 15% of such value.

E - If the rent value was less than 55% of the average similar rent; the maximum rent increase shall be equal to 20% of such value.

Article (2)
For the purpose of this Decree the similar rent value of the property unit means pursuant to “The Rent Index of the Emirate of Dubai” approved by RERA.

Article (3)
This Decree shall be enforced from the date of its issuance and shall be published in the Gazette.*



Funny how she has backed down


----------



## Fletch1969 (Nov 12, 2011)

Ok, here's the latest. I contacted the agent as the landlord hasn't replied to my emails and they are ignoring the RERA calculations and insisting on 10% plus now and agent fee to renew of 1900. I seem to literally have no choice to sign and pau as the contract expires on the 20th and I fly out of the country on Sunday evening for the rest of the week. 

I seem to be completely stuck here. 10 days notice for a 10% rise plus a huge fee to resign. I'm wondering if I can do anything through the Dubai Municipality once I've signed and paid given that I have literally no choice but to do this now..


----------



## Tropicana (Apr 29, 2010)

Just made some calls and find it absurd that the same 2 bedroom going for 80-90k in November is being offered at 130k, and that after a whole lot of apartments recently vacated because of problems in the building


----------



## w_man (Apr 16, 2010)

Fletch1969 said:


> Ok, here's the latest. I contacted the agent as the landlord hasn't replied to my emails and they are ignoring the RERA calculations and insisting on 10% plus now and agent fee to renew of 1900.


1900 fee? For what? There is never a resign fee like that. If anything, the agent charge a couple of hundred AEDs to write up the contract, maybe an extra fee to register with Ejari but 1900?! 

They are screwing with you - fight back - is your current contract registered with RERA/Ejari? If so, you are safe to start talking to them. 

GL


----------



## Fletch1969 (Nov 12, 2011)

Agent is registered, but I can't find out if the contract is registered. I've looked on the site, but got nowhere. Same when I tried to register it myself. 

Presume they are open on Sunday, but doubt they will be on Sat. Gives me a bit of time to contact them..


----------



## w_man (Apr 16, 2010)

Yea give it a try - make sure you take your contract with you or have it with you when you call so they can check if your contract is registered. Even if not, check if they can do something for you. 

These guys are obviously going against the rules but are hoping for you to not bother fighting. Unfortunately most of us don't have the time to fight and end up giving in. Hope it goes your way.


----------



## Fletch1969 (Nov 12, 2011)

Thanks.. The problem is timing; by giving me 10 days notice at a time when I'm totally swamped with work I literally have no time to do anything. I've found a couple of possible other properties just in case, but the timing really couldn't be worse..


----------



## BedouGirl (Sep 15, 2011)

Can I ask you something? Did you try to contact the landlord before the notice period began? I mean, if it was a sixty day notice period, shouldn't you have been contacting him at least a month before that to find out what the terms for the new lease would be? If I am not mistaken, if there has been nothing in writing by the time the notice period starts, the landlord can take it that the lease will automatically be renewed. I am not condoning the landlord's behavior, but you are saying you now find yourself in this situation and have no time, etc., but - on the face of it - you seem to have enabled the landlord to do this to you. I have had the same landlord for many years and, thankfully, have a good relationship with him and the guys in his office, but I don't wait for them to come to me about the renewal and I would proactively follow-up until I resolved everything, even though I am pretty sure he wouldn't try to lock me into something I could not or did not want to do. Apologies if I have got the wrong end of the proverbial stick.


----------



## Fletch1969 (Nov 12, 2011)

No, that's fine, absolutely fair comment.. I did speak to the agent about 6 weeks ago, but the guy I spoke to is no longer there and seems to have not recorded anything.. Should have put it in writing, but I didn't. I accepted the contract as written. My mistake.

Although RERA say no increase, I'm happy with 5% as I'm realistic about the market and you are right, I have in a way enabled the landlord to do this to me as I assumed that what I'd been told when I signed was correct - the lease would automatically be renewed if I didn't give them sufficient notice to leave and as it was 1st to 2nd year it would be no increase. The fee increase for this year is higher than the 5% I'm happy with, but I can write off the extra as '1st year in Dubai stupidity/naivety tax. It's annoying, but you are right, if I'd known the reality of the system better I could have prevented the situation, or at least negotiated earlier. Part of me doesn't want to accept any rent increase as the law seems clear and if we all give in, the rents will spiral up as they did in the boom and we'll all get screwed. However, I'm accepting the situation.

What's annoying me now though is having agreed the price, (bit high, but not unreasonable and I've accepted this), the agent is now wanting 1900 for me to renew. I have never heard of anyone asking more than 1000, and most were 500 or less. I think there was an article in Gulf News saying anything over 160 wasn't legal..

I kept a lot of notes from conversations when I was looking to rent somewhere this time last year and conditions to renew and costs were something I asked about then and the fee they quoted then was nothing like this. Again perhaps I could have got this in writing from them then, but I'm not sure the rules would have been stuck to over this period..

In short, you didn't get the wrong end of the stick. Lessons learnt..


----------



## BedouGirl (Sep 15, 2011)

The fee is outrageous and I am sure you are right about the ceiling for this. I think I saw it in The National. See if you can find it on their website. I argued an AED 500 renewal fee for one of our company's leases and pushed it back to the landlord to pay, particularly as a blue lease document costs around AED 5 or 10! Good luck and don't forget to put a date in your calendar for six weeks before the notice period is due next year! 


----------



## Fletch1969 (Nov 12, 2011)

Think it may have been in Gulf News, but I'll check..


I'm sure there was a sticky I found about renting here, but hadn't picked up the details of renewals. As BedouGirl girl says, you can't communicate early and often enough to get these things sorted sooner rather than later. :-/


----------



## BedouGirl (Sep 15, 2011)

Gulf News it was - here you go http://gulfnews.com/business/property/uae/maximum-fee-for-tenancy-renewal-is-dh160-1.877583


----------



## Fletch1969 (Nov 12, 2011)

Thanks 😊


----------



## Fletch1969 (Nov 12, 2011)

That was supposed to be a


----------



## dubailaws (Jul 24, 2013)

Ogri750 said:


> My landlady gave me notice of a rent increase of more than 30%.
> 
> I sent her this:
> 
> ...


Absolutely correct....greedy land lords. You read the direct links of laws and regulations here!

dubailaws[dot]net


----------



## jk_1337 (Oct 25, 2012)

I just used the rental increase calculator and put in a date some time next month (even though my contract doesn't expire til next year) and it's telling me the average rent in my area for a 1 BR is 45-55 a year... I'm paying 70! (and didn't find anything in the area below 65 when I was looking).


----------



## River82 (Mar 12, 2014)

msbettyboopdxb said:


> I had a long arguement with my landlord last week about this. I printed the rera calculator stuff and he went on and on about how rents have gone up, bla, bla, bla. I went on and on about the value of a good tenant who has been in the building a long time. In the end, I said I wasn't trying to have a fight or go to court; just reach a reasonable raise and we came to a figure both parties found satisfactory.
> 
> If you have the time and energy, you could try that out. I'm still confounded how rents can go up when there's an oversupply of buildings.


I'm facing the same issue, does going to court helps at all??


----------



## de Mexicaan (Apr 16, 2012)

@sgawdat: I heard in several occasions it indeed works. Go to RERA first to check.


----------



## River82 (Mar 12, 2014)

de Mexicaan said:


> @sgawdat: I heard in several occasions it indeed works. Go to RERA first to check.


Okey so i have to go to RERA first...got it...Thanks!


----------



## msbettyboopdxb (Mar 22, 2009)

sgawdat said:


> I'm facing the same issue, does going to court helps at all??


We never to to the court level because we settled. But you can still call rera and if you are in the right, they will help you for sure.


----------



## River82 (Mar 12, 2014)

msbettyboopdxb said:


> We never to to the court level because we settled. But you can still call rera and if you are in the right, they will help you for sure.


I'll definitely check with RERA..thnx!


----------



## Brav0 (Feb 11, 2013)

I have read many posts and threads and wonder if someone can help me with my situation as opposed to a general question (sorry if I am being selfish)

We have 2br apartment in JLT and pay 100K plus fixed price chiller.

I have checked the RERA calculator and we are in the 26% bracket so 'legally' our landlord can increase our rent to 110K plus chiller. 

However we only in our first year, going into our second on the 15th May, our land lord has not contacted us yet but before he does (or I contact him) I want to be sure of our position.

my question is:

- can he increase the rent going into our second year
- does the 3 month notice rule apply

Thanks


----------



## vantage (May 10, 2012)

Brav0 said:


> I have read many posts and threads and wonder if someone can help me with my situation as opposed to a general question (sorry if I am being selfish) We have 2br apartment in JLT and pay 100K plus fixed price chiller. I have checked the RERA calculator and we are in the 26% bracket so 'legally' our landlord can increase our rent to 110K plus chiller. However we only in our first year, going into our second on the 15th May, our land lord has not contacted us yet but before he does (or I contact him) I want to be sure of our position. my question is: - can he increase the rent going into our second year - does the 3 month notice rule apply Thanks


Yes, he can increase the rent after one year now, I think.
Yes, the three month notification still applies, I think.

Sounds like he's missed the boat, so you should roll over at 100k.

I think I'm right....!


----------



## BBmover (Jun 15, 2013)

Brav0 said:


> I have read many posts and threads and wonder if someone can help me with my situation as opposed to a general question (sorry if I am being selfish)
> 
> We have 2br apartment in JLT and pay 100K plus fixed price chiller.
> 
> ...


The 90 day notice does apply unless you have an addendum in your contract for 60 day renewal as we found out and Rera advised that this is applicable by law.

Contact Rera as they will advise you what to do and if the LL has missed notification then you should continue to be offered the same terms without a rent increase. Although Rera did say to us to negotiate if a good relationship with LL....
And check if your contract states tenant must contact LL to renew.....a grey area but being used. Although I find it absurd how you can say you want to renew without any increase etc being discussed.
We are still in the process of sorting ours out as LL wants a huge hike plus new contract, after the deadline, is not the same as previous terms as well as being told a 12 month eviction notice without any reason or notice given!


----------



## Brav0 (Feb 11, 2013)

BBmover said:


> The 90 day notice does apply unless you have an addendum in your contract for 60 day renewal as we found out and Rera advised that this is applicable by law.
> 
> Contact Rera as they will advise you what to do and if the LL has missed notification then you should continue to be offered the same terms without a rent increase. Although Rera did say to us to negotiate if a good relationship with LL....
> And check if your contract states tenant must contact LL to renew.....a grey area but being used. Although I find it absurd how you can say you want to renew without any increase etc being discussed.
> We are still in the process of sorting ours out as LL wants a huge hike plus new contract, after the deadline, is not the same as previous terms as well as being told a 12 month eviction notice without any reason or notice given!


Thanks, I have checked out agreement and there is no mention of 60 or 90 period?

I will contact RERA and let you know how I get on

Good luck


----------



## Byja (Mar 3, 2013)

Brav0 said:


> Thanks, I have checked out agreement and there is no mention of 60 or 90 period?


If it's not mentioned, then it should be 90 days by default.


----------



## Brav0 (Feb 11, 2013)

Byja said:


> If it's not mentioned, then it should be 90 days by default.


So if LL hasn't contacted us and the tenancy is up on the 15th May then he cannot increase, even though its below the RERA valuation?


----------



## Byja (Mar 3, 2013)

Yeah, it should be like that. But go through all the Ts & Cs of your TC to make sure he doesn't have an ace up his sleeve.
Then again, I'd suggest to leverage this against him to agree on a rent increase less than what RERA calc suggests. That way no one ends up being a total loser.


----------



## BRIDGET12 (Oct 28, 2013)

Rental Dispute Centre should have a regular check on buildings as to how much rent has been increased...by this way the landlords who has increased rent above the permitted limit can be fined...instead of a common man bearing all the rent hike ...is in't It fair and justice for a property owner to be fined for the injustice he does.....Building where I stay my rent was 50000(Al fardan Building, Al ghubaiba Area). In Al Souq Al Kabeer , The rent for a Two bedrooms apartment ishould be 65000 to 70000 AED per year as per Dubai Land.gov.ae. and my Rent is lower by 26% of the average rent but It is also mentioned in rera that The rate of increase for should be 10% which is 5000 AED, but I have been given a hike of 10000 AED (that is AED 60000). Is it legal ?? On top of that watchman brings renewal paper on 1st of April (last contract expires on 30th of April) and gets it signed immediately saying office people wants it urgently there is also a law that there should be minimum 90 days notice period.. where should we complain for all these.. there are many helpless people and its the government who should help us...Expo 2020 and everywhere rents are increased...nothing else


----------

