All Must-Know Guide about the RERA Rental Calculator Dubai

In contemporary times, individuals frequently relocate for career or other purposes, often necessitating a move to rented accommodations. Unfortunately, many tenants remain unaware of their rights, leading to instances where they may unknowingly pay rents above the established market standards. In response to this, RERA (Real Estate Regulatory Agency) has instituted specific guidelines in Dubai to foster transparency between landlords and tenants, ultimately safeguarding the interests of both parties. This blog serves as a valuable resource for tenants in Dubai grappling with issues such as unexpected rental increases before the termination of their rental agreements. Explore the rights afforded to tenants and landlords under RERA guidelines and gain insights into utilising the RERA rental calculator Dubai to ensure a fair and transparent renting experience.

Dive into this blog to empower yourself with knowledge and navigate the Dubai rental landscape with confidence.

RERA: An Overview

The Real Estate Regulatory Agency (RERA) plays a crucial role within the Dubai Land Department (DLD), serving as a regulatory authority overseeing the landlord-tenant relationship. Among its core responsibilities is the collection of information on real estate owners and tenants, a measure aimed at addressing potential disputes in the future. Moreover, RERA functions as the governing body for individuals and organisations operating in Dubai’s real estate industry.

RERA’s scope extends to ensuring adherence to regulations and enforcing laws within the real estate sector. Specifically, in Dubai, RERA assumes the pivotal role of formulating key regulations that impact foreign investors. This includes monitoring the legality of actions taken by insurance companies, banks, and developers. Notably, RERA also scrutinises the credibility and authenticity of real estate advertisements, contributing to the transparency and reliability of information in the real estate market.

What is the RERA Rental Increase Calculator in Dubai?

Apart from the above-mentioned responsibilities, one important duty of RERA is to maintain and update the Rental Price Index in Dubai. It is this database that includes the average rental prices, which are then updated on an annual basis. RERA also regulates tenancy contracts in Dubai to develop transparency between the tenant and the landlord. Hence, people in Dubai need to check the average rental index for residential and commercial properties. 

RERA also introduced the Rental Increase Calculator Dubai to make the Rental Price Index easily accessible. This online service is user-friendly and can be used to determine the possible rent increase too. You can also find the average rent for any region in Dubai with this calculator. 

A Look at the Working of the RERA Rental Calculator Dubai

Before using the RERA Rental Increase Calculator Dubai, it is important to note that the increase in the annual rental index depends on factors like the number of rooms, property type, and location. 

• How Do I Use the Rental Increase Calculator Tool?

To use the Dubai RERA Rental Increase Calculator, you need to log in to the Dubai REST application/ visit the official website of the Dubai Land Department. Then you’ll have to open the inquiry about the Rental Index tab. Here, you’ll have to enter all the necessary information and click on the ‘Calculate’ icon to get the final result. Remember, you should know the relevant information to calculate the rental increase. These details are:

• • Property type: residential, commercial, industrial/ staff accommodation
  • The current tenancy contract Dubai’s expiration date
  • Property location/area and ownership (if it is a freehold property)
  • Property type (apartment or villa)
  • Total bedrooms
  • Current annual rent

Observing the Increase in the Rent Index

Since January 2016, the RERA rental index has worked in a graded structural manner. Let us look at how this approach is followed: 

• There isn’t an increase in the rent if the rent is 10% lower than the estimated market value.
• In cases where the rent is 10%-20% lower than the market value, the rent can be increased up to 5%.
• If the rent is 20%-30% less than the market value, the rent can be increased up to 10%.
• Similarly, if the rent is 31%-40% lower than the market value, the rent can be increased up to 15%.
• Lastly, if the rent is around 40% less than the market value, the rent can be increased up to 20%.

Permissible Rent Increase According to the Rental Price Index Dubai 2016

According to the recent RERA Rental Price Index in Dubai, a landlord should follow the below-mentioned guidelines.

• If the current yearly rent is 10% lower than the market value, then the rent cannot be increased. 
• In cases where the current rent is between 11%-20% less than the market value, the rent can be increased up to 5%.
• Your landlord can increase the rent up to 10%

What are the Conditions Under which a Rent Increase is Allowed?

RERA (Real Estate Regulatory Agency) plays a crucial role in protecting the interests of tenants, with one notable instance being the regulation of rental increases. 

• If your rented space is eligible for a rental increase, your landlord is required to notify you in advance. 
• This notification must be in the form of a notarized written notice, which the landlord should submit 90 days before the renewal of your tenancy contract in Dubai. 
• The notice can be delivered either in person or through registered mail/courier.

Should the landlord fail to provide the notarized notice within the stipulated 90-day period, you have the right to reject the proposed increase in rent. This provision ensures transparency and allows tenants to make informed decisions regarding their housing arrangements.

How to Handle Illegal Rent Increases?

Even though RERA has set guidelines to protect the interests of the tenants, there are instances where the landlord increases the rent illegally. Additionally, rent can occasionally be raised above the legal maximum. In such instances, the tenant can negotiate with the landlord by using the rental calculator as proof supporting their argument. The tenants also have the right to file a rental increase dispute with the Rental Dispute Settlement Centre in case the landlord still disagrees. These RERA rental increase rules have been set up to cater to such situations.  

Summing Up

More often than not, people are unaware of their rights as tenants. In Dubai, RERA is one such body that protects the interests of both tenants and landlords. You should know how to calculate rental increases to forecast the future. It not only gives you an estimated figure but also helps you ensure whether the increase is in line with the guidelines set by RERA. In case your landlord tries to fraudulently increase the rent, you can always complain to the Rental Dispute Settlement Centre.

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Frequently Asked Questions (FAQs)