Rules for Rent Increases by Landlords in Dubai

Table of Contents

1. Introduction
2. Overview of Rent Regulation in Dubai
3. Understanding the RERA Rental Index
4. When Can Landlords Increase Rent?
5. Notice Requirements for Rent Increase
6. How Much Can the Rent Be Increased?
7. Legal Procedures for Rent Hikes
8. Tenant Rights and Legal Recourse
9. Digital Tools and Platforms to Track Rents
10. Case Study: Dispute Over Rent Hike in Jumeirah Lakes Towers
11. Common Mistakes Landlords Make with Rent Increases
12. Associated Fees and Charges
13. FAQs About Rent Increase Rules in Dubai
14. Partner with Homecubes

Introduction

Dubai’s rental market is governed by a dynamic framework designed to balance the interests of landlords and tenants. With increasing demand and evolving regulations, understanding the rent increase rules in Dubai is critical for landlords who want to stay compliant and for tenants seeking transparency. This article explores the key aspects of rent adjustments, guided by Dubai’s Real Estate Regulatory Agency (RERA).

Overview of Rent Regulation in Dubai

RERA, under the Dubai Land Department (DLD), regulates rental agreements and increases. The primary law governing this area is Law No. (26) of 2007 and its amendments via Law No. (33) of 2008.

Key regulatory mechanisms include:

• Mandatory Ejari registration of tenancy contracts
• Enforcement of the RERA Rental Index
• Legal notice periods for rent adjustments
• Dispute resolution via Rental Disputes Center (RDC)

According to RERA, rent increases can only occur under strict conditions to protect tenants from sudden hikes while ensuring landlords can adjust to market realities.

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Understanding the RERA Rental Index

The RERA Rental Index is a key benchmark tool available on the Dubai REST app or DLD’s official portal. It compares the current rent of a property to average rents in the same location and property type.

For example:

• If a tenant is paying AED 60,000 annually and similar units average AED 75,000, a rent hike might be permitted—but only within capped limits.

The rental index is updated quarterly and provides landlords with legal backing when proposing rent increases.

When Can Landlords Increase Rent?

According to RERA, landlords are not allowed to raise rent within the first two years of a tenancy contract. After that, increases may be considered based on market trends and the RERA Rental Index.

Conditions include:

• A minimum 90-day notice prior to the end of the contract
• Compliance with rental cap brackets (explained below)
• Justification using the RERA index calculator

Additionally, rent can only be increased at contract renewal, not mid-term unless mutually agreed in writing.

Notice Requirements for Rent Increase

By law, landlords must provide a written notice of at least 90 days before the contract ends if they intend to increase rent. Failure to do so means the current rent continues, even if a legal increase is permitted.

The notice can be delivered:

• Through registered mail
• Email with delivery/read confirmation
• Via the Ejari system or Dubai REST platform

If no notice is served, any rent hike is legally void, and tenants have the right to dispute it.

How Much Can the Rent Be Increased?

The RERA Rental Index outlines specific thresholds based on how far the current rent is below market average:

Source: RERA Rental Increase Calculator

These caps prevent excessive or arbitrary rent spikes and create predictability for both landlords and tenants.

Legal Procedures for Rent Hikes

If a tenant refuses a legitimate increase, landlords can:

1. File a case with the Rental Dispute Center (RDC)
2. Provide evidence via RERA index and tenancy history
3. Request eviction by considering tenancy eviction notices in Dubai if the tenant fails to comply after RDC decision

Tenants, on the other hand, can challenge increases that:

• Exceed legal thresholds
• Are not supported by the RERA calculator
• Lack proper notice

There are several types of tenancy disputes in Dubai, which are usually resolved within 30 days via RDC’s streamlined process.

Tenant Rights and Legal Recourse

Tenants are protected under Dubai’s tenancy laws and can:

• Reject unlawful increases
• File complaints via Dubai REST or RDC
• Demand documented proof of calculations
• Seek rent freeze extensions in special cases (e.g., COVID-19 relief)

In case of unfair treatment, tenants can access free legal assistance via RERA or licensed real estate advisory services.

Digital Tools and Platforms to Track Rents

Dubai’s real estate tech ecosystem supports rent transparency through platforms such as:

• Dubai REST App – For calculating rent index
• Ejari Portal – For lease registration and verification
• Bayut & Property Finder – Market comparisons
• DXBinteract – Historical rental trends

These tools empower both landlords and tenants to make data-driven decisions.

Case Study: Dispute Over Rent Hike in Jumeirah Lakes Towers

In 2024, a tenant in JLT received a notice of a 25% rent increase. Upon checking the RERA calculator, the current rent was just 15% below market rate, allowing only a 5% increase.

The tenant filed a complaint with RDC, citing:

• Violation of the RERA cap
• Insufficient notice (only 45 days)

Ruling: The RDC ruled in favor of the tenant, nullifying the increase and penalizing the landlord for non-compliance with Article 14 of Law No. (26) of 2007.

This case emphasizes the importance of adhering strictly to rent increase procedures.

Common Mistakes Landlords Make with Rent Increases

• Failing to issue the 90-day notice
• Using outdated rental data
• Exceeding RERA cap without legal basis
• Not registering renewals through Ejari
• Evicting tenants without valid reason

Avoiding these missteps protects both legal standing and long-term rental income.

Associated Fees and Charges

When increasing rent, landlords may encounter administrative and legal fees:

Note: These costs cannot be unfairly transferred to tenants without mutual consent.

FAQs About Rent Increase Rules in Dubai

Q1: Can a landlord increase rent mid-contract?
No. Rent increases can only happen upon renewal with proper notice.

Q2: What if the tenant refuses to accept the increase?
The landlord must approach the RDC to resolve the matter legally.

Q3: How often can rent be increased?
Once every 12 months, subject to RERA index and legal caps.

Q4: Is the 90-day notice mandatory in all cases?
Yes. Without it, the rent increase is invalid.

Q5: Where can I check if my rent is above or below the average?
Use the RERA Rental Index Calculator to assess market benchmarks.

Q6: Can tenants negotiate lower increases?
Yes, especially if the landlord has no strong index justification.

Q7: Are rent increases allowed for commercial properties?
Yes, but under slightly different terms, often guided by lease contracts and market benchmarks.

Partner with Homecubes

Whether you’re a tenant seeking clarity or a landlord aiming to stay compliant, understanding rent increase regulations is key to fostering strong rental relationships. At Homecubes, we are closely following the legal and regulatory changes in Dubai’s property ecosystem.

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