08/11/2024
Rent increase is a serious amendment of the tenancy contract. Therefore, the Government developed some rules to make the rent increase procedure less painful for the tenants and give them time to prepare.
In this post, you will find how and when you as a landlord shall inform your tenant about the rent increase. You will get a full understanding of how much you can raise your rental value and when you can file a case with RDC on regard rent issues and disagreements.
To start with, Law No. 33 of 2008 and Law No. 26 of 2007 are all about tenancy relationships. In other words, it regulates all the relevant aspects, including those regarding rent increase notifications.
To go to, provisions of LAW NO. 26 OF 2007 are effective only in case there are no amendments stipulated in Law No. 33 of 2008. For the purpose of rent increase notification, the latter is a legal document to turn to. To clarify, its provisions amend Articles (9), (13), and (14). Also, there are some amendments in Article (2), where you can clarify the meaning for all important terms applied. So, according to Law No. 33 of 2008, there are two legal requirements for rent increase notification:
Existing laws and decrees are explicit. However, numerous RDC cases regarding violation of the procedure indicate the landlords often need some guidelines to follow to comply with the law. To make things easier for you, we provide a step-by-step guide on how to legally increase the rent:
Now, it's time to turn to Decree No. 43 of 2013, a decree that clarifies a maximum rental increase cap to apply when a landlord increases the rent. The Decree provides the cap in the percentage of the current rental value. Generally, your exact cap will depend on just two bullet points:
For the purpose of this post, we discuss only cases that may involve a rent increase letter. Directly or indirectly.
So, regarding this, we can consider only one case – a case when a landlord suffers from non-payment or not-in-full payment issues. The variations of the cases can be as follows:
In this case, you can file a rental dispute with RDC Dubai. Up to eviction. Your actions should include:
However, note, Law No. 26 of 2007, Article (14) stipulated that if the tenant opts not to renew the lease, he must notify his landlord about this non-renewal decision not less than 90 days before the valid lease ends. However, Law No. 33 of 2008 amended Article (14) and excluded these requirements about non-renewal notification.
That is to say, a tenant is free not to prolong his tenancy relationship with his current landlord when the contract ends. Without any 90-day notification. So, if your tenants do not agree with your new prices, they can just not come for the lease renewal and vacate your premises the day their lease ends. In this case, you have no legal ground for prosecuting them.
As you see, there are so many nuances to consider when dealing with a rent increase. At BSO, we are here to help you with this and others activities. Contract with us for your property management and enjoy your hassle-free landlordship.
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