Rent in the Emirates is one of the thorny issues that everyone deals with, as it greatly affects the course and quality of life of the individual, and from time to time, rental prices are exposed to a justified or unjustified increase.. which makes the tenant wonder about the right of the landlord to raise the rent value to the extent to which he raised it… but the law is in effect and clarifies to everyone the extent of the permitted rent increase.
We at the office of lawyer MR Ahmed Humid Al Balooshi Law Firm – AHA LEGAL OFFICE specialize in all types of rental cases and provide you through this article the necessary legal information about rent in the United Arab Emirates and the extent of the permissible limit for raising the rent value every specific period of time, and we will also explain to you when the value of raising the rent is unfair… and it must be disputed to recover rights.. Send us your inquiry now.. Click and contact us now.
First: Real Estate Rental Law in the United Arab Emirates
The UAE law stipulates that the rental value should be increased every 3 years, and this is applied after the contract comes into effect and is renewed every year for a period of 3 years, then the lessor has the right to increase it by the same. By increasing the same, the rental value should be similar to the rental value of real estate in the same area.
The UAE law applies to all lands and real estate rented in the emirate and does not exclude any other real estate except those provided by natural or legal persons to their employees as “workers’ housing” without charging them any financial value as rent.
The law also stipulates that the rental relationship between the lessor of the property and its lessee is regulated by a lease contract that includes a negative description of the rented property, the intended purpose of the lease and the rent, and all of the methods of payment, and the name of the property owner if the lessor is not the owner.
The UAE law also stipulates that all rental contracts and any amendments thereto must be registered with the Real Estate Regulatory Agency.
Second: Types of leases according to the type of lease
Leases are divided according to the activity for which the property is used:
1- Commercial property: The notice period before raising the rental value is 60 days
2- Residential property: The notice period before raising the commercial value is 90 days
Third: Rent increase in the United Arab Emirates according to the new rental law
The new rental law is considered to have entered into force at the end of January 2021 and contains a number of changes regarding rent and rent increases in the rental market in the Emirate of Dubai and other emirates. The rental increase for the property is taken into account as follows:
– Owners of rental properties can increase the rent annually by only 5% in relation to residential properties.
– Also, the rent can only be increased once a year and by a maximum of 10% of the rental value.
– If the tenant does not agree to the increase set by the owner, he has the right to submit a notice for 90 days before the expiration of the lease contract.
This gives tenants the opportunity to find alternative housing if they do not wish to renew the lease contract. The new lease law takes into account the situation of all tenants, as tenants have the opportunity to negotiate the rent value with the landlord or his representative.
The landlord can also increase the rent to an acceptable limit, and similarly for all properties in the area where his property is located, which constitutes a burden and pressure on tenants and enables everyone to take their rights.
Fourth: When is raising the rent unfair and unjust to the tenant and must it be disputed?
– In the event that the landlord raises the rent value to more than the permissible limit after three years from the date of signing the lease contract
– In the event of a sudden and unjustified rent increase
– In the event of a request for eviction before implementing a 90-day notice period
– In the event of an annual rent increase under the pretext of the market price, he is not entitled to increase it after the last increase in the rent value until two years after the end of the first three rental years. So if you have any inquiries about rental and real estate issues in the Emirates, you can contact the office of MR Ahmed Humid Al Balooshi Law Firm – AHA LEGAL OFFICE, where our team of lawyers specialized in real estate and rental issues can resolve any disputes between the owner and the tenant as quickly as possible. Click and contact us now for any legal inquiries!
