# Rent increase?



## Amame (Jan 11, 2011)

My friend rents an apartment in the palm at 75 k and the contract is expiring in August 2011. The landlord is asking for the new rate at 85 k. Is it legal? 

I heard that the rent has to be freezed for at least 2 years, but i also heard that it was the old law and no longer valid. Google doesn't do much help. And I do not understand much about the cap increase. They said it can only be increased if the property was more than 25 per cent below the average index price.


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## Bigjimbo (Oct 28, 2010)

Type RERA into google. Try typing Law 26 into google. Both of these have the answer. If you can't be bothered then a potted version is this: The rent automatically renews on the same terms as the previous year for the 2nd year. For subsequent years the rent can only increase if it meets the criteria laid out by RERA.


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## Bigjimbo (Oct 28, 2010)

Amame said:


> My friend rents an apartment in the palm at 75 k and the contract is expiring in August 2011. The landlord is asking for the new rate at 85 k. Is it legal?
> 
> I heard that the rent has to be freezed for at least 2 years, but i also heard that it was the old law and no longer valid. Google doesn't do much help. And I do not understand much about the cap increase. They said it can only be increased if the property was more than 25 per cent below the average index price.


By the way is the apartment in Habool?


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## marc (Mar 10, 2008)

Yeah but the law doesn't matter, the landlord will just say move out, I'm not extending the lease for another year, then the tenant either moves out or pays what the landlord wants.


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## Tropicana (Apr 29, 2010)

So all laws on rent increases are useless then ?


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## Gavtek (Aug 23, 2009)

Any law in Dubai that is designed to protect Joe Average is useless.


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## Jumeirah Jim (Jan 24, 2011)

If the landlord won't renew at the same rate or in accordance with the rent cap law you have to take the matter to the rent committee. Pretty cheap and easy way to resolve the issue usually (depending on who you are up against if you get my drift..)


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## Felixtoo2 (Jan 16, 2009)

You should at least tell the landlord that you have arranged an appointment with RERA in Deira, (wow i`m a poet!), to get their advice on the matter as you believe that it should not be increased and try to bluff him into letting stay for the same amount, 
The bad news is that from my own experience RERA could not give two flying figs about these things and the even worse news is that it``ll proabably cost you almost 10K to move to somewhere similar due to agents fees , deposits and removal expenses and you can bet that is exactly what your landlord is betting on, its a bit like poker. 
Good Luck!!


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## rtenhave34 (May 27, 2011)

Felixtoo2 said:


> You should at least tell the landlord that you have arranged an appointment with RERA in Deira, (wow i`m a poet!), to get their advice on the matter as you believe that it should not be increased and try to bluff him into letting stay for the same amount,
> The bad news is that from my own experience RERA could not give two flying figs about these things and the even worse news is that it``ll proabably cost you almost 10K to move to somewhere similar due to agents fees , deposits and removal expenses and you can bet that is exactly what your landlord is betting on, its a bit like poker.
> Good Luck!!


Doesn't the RERA in Deira charge (heftily) for their services as well?

BTW: When is your next poetry bundle being published? 

Richard


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## Felixtoo2 (Jan 16, 2009)

Opening a case with RERA may well be dearer
But they can give free advice, which is always nice.
So even though Deira may not be too near ya
The trip down town may save a few crown.


Ps. The book`s out in August, form an orderly queue, lol


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## MMNS (Jun 4, 2011)

Felixtoo2 said:


> Opening a case with RERA may well be dearer
> But they can give free advice, which is always nice.
> So even though Deira may not be too near ya
> The trip down town may save a few crown.
> ...


:clap2:


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## Amame (Jan 11, 2011)

Bigjimbo said:


> Type RERA into google. Try typing Law 26 into google. Both of these have the answer. If you can't be bothered then a potted version is this: The rent automatically renews on the same terms as the previous year for the 2nd year. For subsequent years the rent can only increase if it meets the criteria laid out by RERA.


I actually googled it before and i read in somewhere that the law about freezing rent for 2 years was declared in 2008 but was not available in the next year, so I'm confused. 

Btw, my friend stay in Al Hallawi!


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## wandabug (Apr 22, 2010)

Tell Landlord to stick his rent increase where the sun don't shine and look for another apartment. It is a renters market and there is a strong chance the Landlord will back down rather than have an empty apartment. Check out Dubizzle for current rents to get an idea of the rent he is paying is reasonable or not.


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## rtenhave34 (May 27, 2011)

Felixtoo2 said:


> Opening a case with RERA may well be dearer
> But they can give free advice, which is always nice.
> So even though Deira may not be too near ya
> The trip down town may save a few crown.


Beautiful... Simply beautiful..... 

And on a somewhat serious note and back to topic: Have a look here! Should contain most information the OP is looking for.


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## Bigjimbo (Oct 28, 2010)

Amame said:


> I actually googled it before and i read in somewhere that the law about freezing rent for 2 years was declared in 2008 but was not available in the next year, so I'm confused.
> 
> Btw, my friend stay in Al Hallawi!


J1 or J2?


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## Amame (Jan 11, 2011)

Bigjimbo said:


> J1 or J2?


Hmm not sure i never go there.
Is this price normal? 85 for that area?


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## Maz25 (Jul 6, 2008)

wandabug said:


> Tell Landlord to stick his rent increase where the sun don't shine and look for another apartment. It is a renters market and there is a strong chance the Landlord will back down rather than have an empty apartment. Check out Dubizzle for current rents to get an idea of the rent he is paying is reasonable or not.


Completely agree. I had the situation over a year ago. I chose to move out and refused to negotiate further with the landlord. That was the point when he realised that I was not even in the least bit fussed about moving and he offered cheaper rent. Unfortunately for him, I'd found a much nicer apartment by then! He did manage to rent out the apartment...for a lot less than what I had originally offered!


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## Jumeirah Jim (Jan 24, 2011)

You need the rent committee, not RERA. RERA won't get involved in and landlord-tenant dispute. 

But what wanda said. It's a renter's market. Hassle of moving yes but look around. What you save should outweigh the hassle and cover you paying for movers.


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## Dozza (Feb 17, 2009)

Im at this point again....Will be coming to the end of my 1st year in this apartment & the landlord has decided to tell me the rent is increasing a further AED 15,000. 

As other members have stated, its a tennants market so think I will be moving. 

I may just request he reduces my rent a further AED 15,000 for good measure....He obviously doesnt realise 30%/40% of the development is still empty


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## Maz25 (Jul 6, 2008)

Dozza said:


> Im at this point again....Will be coming to the end of my 1st year in this apartment & the landlord has decided to tell me the rent is increasing a further AED 15,000.
> 
> As other members have stated, its a tennants market so think I will be moving.
> 
> I may just request he reduces my rent a further AED 15,000 for good measure....He obviously doesnt realise 30%/40% of the development is still empty



Is your landlord based abroad by any chance? The last time I dealt with a landlord who had his head in the clouds, he was actually based abroad and was telling me that the market is buoyant and booming in Dubai and that was last year when the market had rather obviously nosedived and crashlanded.


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## Dozza (Feb 17, 2009)

Maz25 said:


> Is your landlord based abroad by any chance? The last time I dealt with a landlord who had his head in the clouds, he was actually based abroad and was telling me that the market is buoyant and booming in Dubai and that was last year when the market had rather obviously nosedived and crashlanded.


He lives here, but does travel frequently....Havent a clue what plannet he is currently on though


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## julan (Mar 24, 2011)

Amame said:


> My friend rents an apartment in the palm at 75 k and the contract is expiring in August 2011. The landlord is asking for the new rate at 85 k. Is it legal?
> 
> I heard that the rent has to be freezed for at least 2 years, but i also heard that it was the old law and no longer valid. Google doesn't do much help. And I do not understand much about the cap increase. They said it can only be increased if the property was more than 25 per cent below the average index price.


There is in fact a legal cap on annual rent increases but I'm not sure how much. Rents have fallen this summer though so your friend seems to be getting a bad deal and should consider moving


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## Amame (Jan 11, 2011)

He has insisted not to pay the increase and they both agreed on the same rate! Problem solved!


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