# Rent rental question...



## nazimm (Aug 13, 2010)

Hello All

My rent is up for renewal is up end of Jan and the Landlord is asking for a silly increase for renewal (second year). The tenancy contract is not registered with Ejari/RERA but according to RERA rent calculator renewal should be no more than 5% increae.

Question: eventough my tenancy contract is not registered, do the RERA 5% rule still apply? If things get silly, can I still tell the Landlord to sort it out with RERA rent committee and let them decide?

Any help would be great!
Zimoun


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## Chocoholic (Oct 29, 2012)

From what I gather, contracts need to be registered before they'll do anything, but it's worth calling and just asking.

BUT if he's only contacting you now, he hasn't given you the correct amount of notice anyway.


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## M.A.K (Sep 14, 2011)

That kinda works for both sides. Really depends on the terms in the addendum to your contract as to what it states about notices and renewals. They usually still help you if you have no ejari contract so thats not a big problem. Also i wouldnt rely in the rera rent calculator just use the rent increase guidelines and calculate the slab you fall in yourself as the rent increase calculator is not at all accurate.


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## Chocoholic (Oct 29, 2012)

*I was under the impression that unless rents in areas go up by ridiculous amounts, that rent shouldn't go up in the first two years anyway. Is that still the case?


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## M.A.K (Sep 14, 2011)

Nope. There is a rent increase system. Wait let me see if i can post it.


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## M.A.K (Sep 14, 2011)

If the rent was 26% to 35% less than the average rent for a similar property, the maximum increase shall be equivalent to 05% of rent value.
If the rent was 36% to 45% less than the average rent for a similar property, the maximum increase shall be equivalent to 10% of rent value.
If the rent was 46% to 55% less than the average rent for a similar property, the maximum increase shall be equivalent to 15% of rent value.
If the rent was 56% to 55% less than the average rent for a similar property, the maximum increase shall be equivalent to 20% of rent value.


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## M.A.K (Sep 14, 2011)

Honestly these things still aren't crystal clear... just very vague...


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## rsinner (Feb 3, 2009)

Chocoholic said:


> *I was under the impression that unless rents in areas go up by ridiculous amounts, that rent shouldn't go up in the first two years anyway. Is that still the case?


This has changed now. What MAK has written holds. Dubai Property Law ? Understand Dubai Tenancy Law Better with Better Homes. the law is here http://www.dubailand.gov.ae/english/Tashjee/RulesandRegulations/Law 33.pdf

So, basically use the rental increase calculator. :: Rentals ::


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## Chocoholic (Oct 29, 2012)

Brilliant, thanks guys.


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## Bigjimbo (Oct 28, 2010)

Again guys, the first year renewal is gaurunteed by the law of the land to be on the same terms as the first year.


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## M.A.K (Sep 14, 2011)

I really think its possible to increase it staying within the terms above. For the second year ur allowed to ask for market rent. But like i said everything is grey and not very clear.


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## rsinner (Feb 3, 2009)

Bigjimbo said:


> Again guys, the first year renewal is gaurunteed by the law of the land to be on the same terms as the first year.


I thought so too as well, but had recently researched this.
The earlier law allowed no rent increase, but the amended one does not have any such provision. Hence I posted the links.


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## nazimm (Aug 13, 2010)

Thanks for all this guys
Will call RERA tomorrow as the landlord is "proposing" a 22% increase for the second year. The rent calculator came back back "no increase". Honestly, I am prepared to pay an honest rent but that is ridiculous. I don't print money!!!!
The contract I have has some wording on market value but the landlord did not give me any notice with renewal fee or anything. Granted neither did I, but I think it's just too bad, 1 more year renewal and he can hand me the 12 months notice at the same time. Next renewal we will see what th "market says"

Really getting fed up with this. This landlord is a nice guy but when he gave me the figure it was so far out of what I thought I was shocked.

Now that I gathered enough information, I feel a little better. 

Thanks for all the help guys, big fat thank you!!
Zimoin


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## Chocoholic (Oct 29, 2012)

nazimm said:


> Thanks for all this guys
> Will call RERA tomorrow as the landlord is "proposing" a 22% increase for the second year. The rent calculator came back back "no increase". Honestly, I am prepared to pay an honest rent but that is ridiculous. I don't print money!!!!
> The contract I have has some wording on market value but the landlord did not give me any notice with renewal fee or anything. Granted neither did I, but I think it's just too bad, 1 more year renewal and he can hand me the 12 months notice at the same time. Next renewal we will see what th "market says"
> 
> ...


I would go to RERA and ask them to call your LL whilst you're there. They will set him straight.


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## nazimm (Aug 13, 2010)

Right, just call RERA,, 04 222 1112, for info, and they asked me about current rent etc.. and they say, LL and obliged to renew at same price. By the sounds of things, the lady at the other end of the phone was using the RERA calculator She did say that I should get the contract registered so now I have to find the Title deed!!!
Again thanks for all your help!
zimoun


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