Rental Increase for next tenancy term what is allowed

  • 28AUG
Law 33 of 2008 Article 9(2) replaced the same Article in Law 26 of 2007 which removed the requirement to keep rent the same for a period of 2 years. Rental increases are now in accordance with Agency regulations and economic climate. To assess if an increase is allowed visit  Decree 43 of 2013 determines the rental increase for property in Dubai and the increase amount is subject to the average rate for similar properties. For example if you are a Tenant and currently paying between 11 – 20% less than average market rate the Landlord is entitled to request a 5% increase. The more under the average rate the higher the increase by increments of 5%. The maximum increase allowed is 20% however you would have to be paying less than 41% of current average. It is also a requirement by law to put in writing any requests to change the next tenancy term (including rental amount) at least 90 days before expiry unless you have agreed otherwise in the tenancy contract.
28th August 2014