Tenants in Dubai who receive a rent increase notice should first check the Rera Rental Index, because the law ties any hike to how the current rent compares with the average rental value of similar units in the same area.

As residents of Dubai, tenants are subject to the Dubai land laws and their amendments. Under Article 1 of Decree No. (43) of 2013 Determining Rent Increase for Real Property in the Emirate of Dubai (the "Dubai Rent Increase Law"), the maximum increase allowed when renewing a rent contract is as follows:

a. No rent increase, where the rent of the unit is up to 10 per cent less than the average rental value of similar units;

b. Five per cent of the rent, where the rent is 11 per cent to 20 per cent less than the average rental value of similar units;

c. Ten per cent of the rent, where the rent is 21 per cent to 30 per cent less than the average rental value of similar units;

d. Fifteen per cent of the rent, where the rent is 31 per cent to 40 per cent less than the average rental value of similar units;

e. Twenty per cent of the rent, where the rent is more than 40 per cent less than the average rental value of similar units.

If the index shows that no increase is permitted for the unit, the landlord cannot impose a hike on renewal. Tenants who cannot reach an agreement with their landlord may refer the dispute to the Rental Dispute Settlement Centre in Dubai.

(Source: Khaleej Times)