# Rent hike & Selling



## IK5 (Oct 29, 2011)

Hello friends,

My current Dubai based tenancy contract is due for renewal for the second year in August 2013. Until yesterday landlord has not made any contact with me. However, today i have spoken to his property agent and he told me that landlord wants to increase the rent. In reply, i have told him that according to the law, rent can only be increased after the completion of two years. Then he suddenly told me that landlord want to sell his apartment, so he will add the clause of allowing potential buyer to view the apartment from inside in the new contract. I would like to know to know that can he insist me to increase the rent at the time of signing a first renewal? and Should i agree to add the above new clause of viewing in the new contract? lastly, if he will sell the apartment in next few months then what will happen to my tenancy contract?


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## w_man (Apr 16, 2010)

As far as I know, landlords are allowed to show the property to potential sellers and with reasonable time given to you, this shouldn't be a problem.

Having said that, he can sell the property if he wants but he can not evict you with only a month notice. Even if he sells, the new owner will have to give you a 12 month notice if he wants to live in the property himself. 

You should be OK to sign the new contract for 2nd year. If the landlord tries to use different excuses to get you out of the property, contact RERA and look into opening a case against the landlord. I understand this is an easy process and RERA is fairly helpful.

Good luck


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## TallyHo (Aug 21, 2011)

It used to be that landlords weren't allowed to raise your rent for the second year but the law was amended a few years back. Rental increases are now based on the rent you pay versus the current market value.

If your rent is 25% or less, below the current market value as established by the RERA rental calculator, then no rental increases are allowed. If your rent is greater than 25% below market value, then a 5% increase is allowed. 

The landlord may announce he's selling the property but he cannot evict you without a 12 month notice from the end of your current contract period. Anyone who buys the property will be required to respect the current contract in place.


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## IK5 (Oct 29, 2011)

Please have a look at recent view on the law: Dubai rent hike only after 2 years - Khaleej Times


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## TallyHo (Aug 21, 2011)

The article quotes the old law dating back to 2007.

The two year cap no longer exists. It was amended a few years ago. 

Rent increases are now based on the rental calculator:

:: Rentals ::



IK5 said:


> Please have a look at recent view on the law: Dubai rent hike only after 2 years - Khaleej Times


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## vantage (May 10, 2012)

from another thread:

*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.*


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## IK5 (Oct 29, 2011)

I also read it but it doesnt talk about the treatment for first renewal, isnt it?

Secondly, the link which i have given above is a recent one and posted in a leading local news paper and apparently written by a lawyer so how could he get wrong?

Reference: Dubai rent hike only after 2 years - Khaleej Times


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## w_man (Apr 16, 2010)

IK5 said:


> I also read it but it doesnt talk about the treatment for first renewal, isnt it?
> 
> Secondly, the link which i have given above is a recent one and posted in a leading local news paper and apparently written by a lawyer so how could he get wrong?
> 
> Reference: Dubai rent hike only after 2 years - Khaleej Times


Have you checked the rental calculator? Does it state your landlord qualifies for an increase?


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## IK5 (Oct 29, 2011)

It says yes 15% increase but it doesn't say any thing about the treatment for the first renewal


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## de Mexicaan (Apr 16, 2012)

IK5 said:


> It says yes 15% increase but it doesn't say any thing about the treatment for the first renewal


I called RERA last month to ask about this. They told me that the rent can be increased after the first year, the online Rental Increase Calculator is binding. 
The landlord can give a 12 month notice per the expiration day of your contract if he wants you to leave. A potential buyer of your house has to follow the same rules, so he has to take over your contract.


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## IK5 (Oct 29, 2011)

de Mexicaan said:


> I called RERA last month to ask about this. They told me that the rent can be increased after the first year, the online Rental Increase Calculator is binding.
> The landlord can give a 12 month notice per the expiration day of your contract if he wants you to leave. A potential buyer of your house has to follow the same rules, so he has to take over your contract.


Thanks


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## IK5 (Oct 29, 2011)

I asked the same question to The National newspaper and today they have explained:

Landlord taking liberties, so a tenant needs to be aware - The National


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## BBmover (Jun 15, 2013)

IK5 said:


> I asked the same question to The National newspaper and today they have explained:
> 
> Landlord taking liberties, so a tenant needs to be aware - The National


The response you got was that it can't be increased before 2 years so what is the case? Others have stated it can be in line with RERA calculator.


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## Canuck_Sens (Nov 16, 2010)

TallyHo said:


> If your rent is 25% or less, below the current market value as established by the RERA rental calculator, then no rental increases are allowed. If your rent is greater than 25% below market value, then a 5% increase is allowed.
> 
> The landlord may announce he's selling the property but he cannot evict you without a 12 month notice from the end of your current contract period. Anyone who buys the property will be required to respect the current contract in place.


Amazing how the law allows abuse. When you signed your rental couple of years ago you probably got a deal then the market started going up and went up pretty badly. 

It is very easy for landlords to get you out of the property by saying that they are planning to live there and I doubt that either the ex-tenant or RERA will monitor that. They dont and they wont unless someone reports which is highly unlikely.

What happens if the Landlord tells you he is moving and he does not and rents it out to someone else ? What's there for you as an ex-tenant ?


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## Yoga girl (Oct 19, 2008)

Hang on a second folks, The law not only clearly states that the rental calculator must be applied (decree of 2011) but also that any increase MUST be referred at least 90 DAYS before rental renewal is up. So, even if the rental calculator says 15% is applicable, I think the agent was too late!! 
Strongly suggest you contact RERA and opening a case if necessary.

Landlord cannot rent to a new tenant for 2 years if he kicks you out as he can only do the latter if he is moving in himself or a close member of his family, and has no other properties which are suitable. Plus, if he does rent, the tenant can claim compensation from the court. 
In our building the management is quite happy to keep you informed if your landlord evicts you and then rents out again.


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## Yoga girl (Oct 19, 2008)

And please note that rental laws in other Emirates might not be the same. The NAtional is from Abu Dhabi....do they apply the same laws????


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## Canuck_Sens (Nov 16, 2010)

Yoga girl said:


> he can only do the latter if he is moving in himself or a close member of his family, and has no other properties which are suitable. Plus, if he does rent, the tenant can claim compensation from the court.
> In our building the management is quite happy to keep you informed if your landlord evicts you and then rents out again.


Not everyone does what they do in your building that this why I said it is something that Landlords can play with it and they do.

Was just trying to explain what really happens when you put in place a rule that is supposedly good but hard to monitor. Once the tenant is gone most places wont rat landlords out to tenants or RERA. I bet RERA does not even check this in their systems


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## Yoga girl (Oct 19, 2008)

Hard to check when most Landlords and Estate Agents do not register with RERA in the first place. What every expat should be doing is spending a couple of hours and 195 aed on registering every year. Not only would rents stay lower, but we'd all have more power and rights.


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