Renting a villa in Dubai can come with its challenges, especially if the property is over 40 years old and has outstanding maintenance issues.
Recently, a tenant faced a 20 percent rent increase, raising concerns about the justification of such a hike given the general rental trends influenced by newer properties. The tenant rents a villa that is over 40 years old and has several outstanding maintenance issues.
Considering that the RERA rental index does not account for the age of the property, they are questioning whether it is necessary to continue paying higher rents for a villa that does not meet the standards of newer properties in the area. The solution? The RERA Rental Calculator.
The Real Estate Regulatory Agency (RERA) rental calculator is a vital tool for determining permissible rent increases in Dubai. However, it does not account for factors such as the property's age, condition, facilities, or upgrades. While this oversight is less than ideal, the absence of the index would leave tenants vulnerable to unchecked rent hikes by landlords.
Strategies for Dealing with Rent Increases
Negotiating with Your Landlord
The first step is to try negotiating with your landlord. Present the case for a more reasonable rent increase by highlighting the villa's maintenance issues and its age. A face-to-face meeting could help in reaching a mutually agreeable solution.
Seek A Rental Valuation
You can ask the landlord to obtain a rental valuation from the Dubai Land Department. This valuation, aligned with Decree 43 of 2013, could justify a more appropriate rent increase than the 20 percent currently proposed.
File A Case With The Rental Dispute Settlement Centre (RDSC)
If negotiations fail, your last resort is to file a case with the RDSC. Present your situation to a judge, emphasizing your willingness to pay a fair rent considering the villa's age and condition. This legal route can provide a resolution based on fairness and the specific circumstances of your rental property.
While the RERA rental index doesn't consider all aspects of a property's condition, it provides a structured framework that prevents arbitrary rent increases. Tenants facing significant hikes, especially for older properties with maintenance issues, have multiple avenues to seek a fair resolution. Negotiation, valuation requests, and legal recourse through the RDSC are all viable strategies to ensure that rental increases are justifiable and in line with the property's true value.