What Landlords & Tenants Should Know About Rent Increases via Management Companies

The Two-Sided Answer

The answer to this question is a two-way street:

• Client request: A property management company can propose a rent increase if requested by the landlord.
• Legal rights: Rent adjustments must comply with Dubai’s rental laws. If the rent increase follows regulations, the company can proceed with a new contract price.

Rent Increases and RERA

In Dubai, rent increases are regulated by the Real Estate Regulatory Agency (RERA).

• Unlike in some countries where landlords freely decide rental changes, in Dubai, increases are strictly monitored.
• RERA doesn’t dictate when or how much landlords must raise rents.
• Instead, it provides a Rental Index that sets the maximum allowable increase based on property type and location.

The RERA Rental Increase Calculator

To simplify things, RERA introduced the Rental Increase Calculator.

Here’s how it works:

• Select your property type (residential, commercial, industrial, or staff housing).
• Enter details such as number of bedrooms, contract end date, and current annual rent.
• The system compares your rent with similar units in the area and calculates the maximum allowed increase.

If your unit is in a newly developed area or significantly upgraded, the calculator may not apply.
In that case, landlords can request a Rental Valuation Report (paid service):

• The service fees start from AED 2,020 for just one unit and can go up to AED 10,020 if you request the rent evaluation for five units or more.

How Much Can Rent Be Increased in Dubai?

Rent hikes depend on Decree No. 43 of 2013, which sets different caps depending on your current rent compared to market averages.

To calculate:

• Compare your unit’s rent to the official RERA average for similar units in your area.
• Example:
  • A studio in Dubai Sports City should be compared with other studios in the same area.
  • A one-bedroom in Downtown should be compared with similar one-bed units in Downtown.

When Is a Rent Increase Allowed?

There are three key rules:

1. Contract expiry – Rent can only be increased at renewal, never before contract expiry.
2. Notification – Landlords must give tenants at least 90 days’ notice before renewal.
3. Frequency – Currently, there’s no rent-freeze period, meaning increases are possible at every renewal.

Possible Upcoming Changes

The Government of Dubai has discussed introducing a 3-year rent-freeze period.

• If implemented, landlords wouldn’t be able to raise rents for three years after signing a new contract.
• However, the timeline and scope remain unclear.

At BSO, our experts closely monitor such updates. We advise landlords to stay prepared with a property management contract that keeps them legally compliant and financially protected.

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