# Negotiating Rent



## Fuzzz (Sep 6, 2010)

Hi All

I was last living in Dubai in early 2008 before moving to my current posting in Malaysia. I will now be returning to Dubai later this month on a new oppurtunity.

I remember how insane the rental prices had gotten during my time in Dubai and was a key factor to why I moved on. After seeing the rental prices dropping since the crash I have been looking around to see what I can get on my budget (110K)

We are a family of 4 (2 young kids) and we are interested in the Springs area due to the closeness to the British School where I'm hoping to enrol my eldest next year (Sept 2011). 

After looking through Dubizzle I'm pretty confident we could get a 3 b/r villa however I was curious as to how much you could negotiate down with the landlords from the listed price? I have heard stories of people being able to get up to 10K off the listed price but I'm not so sure as that sounds like a lot! Anybody had an experince of this and any tips if so?

Also have the utility prices gone up or down in the past 2 years (Electric, water etc) 

Thanks all


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## yum (Sep 2, 2010)

have you tried the property finder? and yes, DEWA has increased the rates.

as to the discount, based from experience (i had to deal with realtors for my office for the past 3 years)....how i always do it is i tell them, i'll take the property for this much value at this payment terms. do let me know. (it always helps to look at 3 to 5 possible options and let them know that you are looking).

then i give them my card, smile and walk. with the current market, there are more flats/villas available to rent than there are clients. they have to be made aware of that ya?

hope this helps!


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## Fuzzz (Sep 6, 2010)

yum said:


> have you tried the property finder? and yes, DEWA has increased the rates.
> 
> as to the discount, based from experience (i had to deal with realtors for my office for the past 3 years)....how i always do it is i tell them, i'll take the property for this much value at this payment terms. do let me know. (it always helps to look at 3 to 5 possible options and let them know that you are looking).
> 
> ...


Thanks Yum, In your experinece what kind of discount on the listed price is reasonable, 5%, 10% ?

Brian


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## jimbean (May 4, 2010)

Fuzzz said:


> Thanks Yum, In your experinece what kind of discount on the listed price is reasonable, 5%, 10% ?
> 
> Brian


The discount you get will depend to an extent on the number of cheques you offer. If you can offer just one cheque then a discount of well over 10% should be possible. Depends how realistic the list price is to start with. If you ask to give 4 or more cheques then you'll not be in as good a position to negotiate a discount.


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## Gavtek (Aug 23, 2009)

Just prepare to need lots of patience. My lease renewal came through the other day, they want to put the price up by 40,000 Dhs and when I told them that they had bigger apartments with more bedrooms in the same building listed on their website for 60,000 Dhs less than they want to charge me, I was told "those rates are for new tenants only". Couldn't make it up.


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## Mr Rossi (May 16, 2009)

Gavtek said:


> I was told "those rates are for new tenants only". Couldn't make it up.


There is *nothing* that people won't do or try here to grab money, and folk wonder why so many are down on the place. What was the outcome?


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## Gavtek (Aug 23, 2009)

Mr Rossi said:


> There is *nothing* that people won't do or try here to grab money, and folk wonder why so many are down on the place. What was the outcome?


They've come back with a new offer, 10k more than I was paying last year, but still 25k more than I'm willing to pay which is still way more than the average cost in the area.

Looks like I'll be moving and I really don't want to


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## Mr Rossi (May 16, 2009)

Gavtek said:


> Looks like I'll be moving and I really don't want to


Which is the only hold they have over you. Having just moved, it is a pain and hassle, 2nd only to a family bereavement in the stress levels apparently but if the going rate is 25k less, it's worth doing.

Also I can guarantee you that once you are out and in the new place the idiots will phone you up and say ok you can have it at that price.


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## ccr (Jun 20, 2010)

Fuzzz said:


> ...In your experinece what kind of discount on the listed price is reasonable, 5%, 10% ?
> 
> Brian


Brian,

After living here for 5 years, we moved away from UAE for 3 years and have just recently moved back so in almost similar situation as yours.

The rent prices have certainly went up from 3 years ago, but looks like that it is on its way down.

As mentioned, the amount of checks will definitely be important. So is how long the landlord is convinced that you will stay (since prices are going down).

Personally, we took our time and saw a number of options with various agents in several areas. At the end, we decided in an area and made several offers (not at the same time) after figuring out the average asking price for what we wanted.

At the end, we got ~10%+ reduction from the asking price and the landlord is putting in a swimming pool as well as re-landscaping the garden.


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## jason359 (Jun 17, 2010)

Gavtek said:


> Just prepare to need lots of patience. My lease renewal came through the other day, they want to put the price up by 40,000 Dhs and when I told them that they had bigger apartments with more bedrooms in the same building listed on their website for 60,000 Dhs less than they want to charge me, I was told "those rates are for new tenants only". Couldn't make it up.


is it not the case that landlord cannot increase the rent in the second year and can only increase it by 5% in the third year?


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## rsinner (Feb 3, 2009)

jason359 said:


> is it not the case that landlord cannot increase the rent in the second year and can only increase it by 5% in the third year?


I was going to say this myself - I am not aware about the 5% cap, but i have heard from many people that rents cannot be increase after the first year. I will check online and post a link if I can find this rule


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## rsinner (Feb 3, 2009)

rsinner said:


> I was going to say this myself - I am not aware about the 5% cap, but i have heard from many people that rents cannot be increase after the first year. I will check online and post a link if I can find this rule


Okay, that rule is not applicable now

First: the actual royal decree from 2009
http://www.rpdubai.ae/rpdubai/fg?f=DaFD6buDFunTim9885A7Nu9lzfurwomLohK1uRM8fQrnjZqT+jXuAY2FEeLwZ6Os

Then, the news report regarding rent increase methodology in 2010 (which confirms that the methodology is unchanged)
Renters face up to 20% increases in Dubai in 2010 - The National Newspaper

The rent increase calculator
Welcome to the official Dubai Real Estate Community

Another link with the rera index 2010
http://www.hamptons.ae/Global/Publications_UAE/rental_index.pdf

Hope this helps

BTW, this rpdubai site is very mysterious - still not able to figure out whether it is an official site or not


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## marc (Mar 10, 2008)

It is an official site, its just crap. 

rental increase there is no law, if owner wants more and you want to stay you pay, if not then you leave, if he wants you to stay he will lower it. simple.

Every situation is different. No one follows this law or the increase calculator which is completely wrong in most areas.


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