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Dubai: Received a Rent Increase Notice? Learn How to Use Rera Calculator to Assess Fairness

Dubai: Received a Rent Increase Notice? Learn How to Use Rera Calculator to Assess Fairness
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It's a simple tool that gives you quick results; here's a step-by-step guide.

Rent prices often change in Dubai, going up or down depending on market conditions like supply and demand. So, how can you ensure you're not paying too much?

During lease renewal, tenants might get a rent increase notice, as landlords can raise rents annually. However, they must follow the rates set in the Dubai rental index and cannot exceed them.

The Dubai Land Department's (DLD) Real Estate Regulatory Agency (Rera) offers an online tool called the Rera calculator. It helps determine the justified rental increase and shows average rates in the real estate market with just a few clicks.

Here's a step-by-step guide:

  • Step 1: Check your Ejari / tenancy contract

You will need to enter some details from your tenancy contract so keep it ready.

Click on the 'Services' tab and then select 'Popular Services' or 'Informative'. Look for the 'Inquiry about the rental index' option that will take you to the calculator.

  • Step 3: Access the service

Once you click 'proceed' and 'access the service', you'll find a form to fill out. Enter details about your residence: Contract End Date, Property Type, Area, Number of Bedrooms, and Current Annual Rent.

  • Step 4: Get the result

Click on the 'calculate' button and the result will pop up. It will tell you the average rent for a property in your area and the maximum percentage of rent hike. You may export this result as a PDF.

How the increase is calculated

According to information available on the DLD website, here’s how the calculation works:

  • If the rent is 10 percent less than the market value, there is no increase.
  • If it is 11-20 percent lower, the maximum increase may be up to 5 percent.
  • If it is 21-30 percent lower, the maximum increase may be up to 10 percent
  • If it is 31-40 percent lower, the maximum increase may be up to 15 percent.
  • If it is lower than 40 percent or more, the maximum increase may be up to 20 percent.

News Source: Khaleej Times

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