One of the readers Mr. Manoj from Dubai asks;
"Dear Mr. Binesh.. I am a resident of Dubai and my lanlord has increased my rent by AED13,000 this year. Is it legally allowed?"
Dear Manoj,
Thanks for your query.
I would have liked to have more details about your previous rent and the area you are staying in in order to give you a much more accurate answer. However, a hike of AED13,000 appears to be unreasonable. As per the exisitng rules and regulations in Dubai, a landlord can hike the rent annually but it has to be in accordance with the RERA Rental Calculator (http://www.dubailand.gov.ae/English/Tanzeem/Rentals/Rental_Increase_Calculator.aspx). You are advised to visit the site and find out the maximum allowable rent hike in your area as per the calculator and then you can decide the future course of action. Following are the guidlines issued by RERA and Dubai Land Department (DLD) for annual rent hikes.
- Less than 10% below the average market rental rate: No increase is allowed.
- Between 11% and 20% below the average market rate: Maximum allowable increase is 10%.
- Between 21% and 30% below the average market rental rate: Maximum 15% increase is allowed.
- More than 40% below the market rate: Maximum allowable hike is 20%.
Before you take any action, I
strongly recommend you find out from the rental calculator whether the hike is justified or not. If it is not, then you can register a complaint against your landlord at Dubai Land Department's Rental Dispute Settlement Centre. The Centre will first try to sort out the issue amicably between the tenant and landlord before initiating the legal procedures.
Hope this will suffice.

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