The Real Estate Regulatory Agency (RERA) in Dubai has set guidelines to help landlords and tenants understand fair rental prices within the market. The RERA rent calculator is an invaluable tool for this purpose, providing an easy way for individuals to estimate the appropriate rent for various properties across Dubai.

Should your rental contract near its end, you might wonder if your rent will increase. In Dubai, the Dubai Land Department has made this easier to navigate for renters by launching an online Rental Index. This index includes the RERA rental increase calculator, an easy-to-use online resource that helps tenants grasp the possible rent hike upon lease renewal. We’ve compiled everything you need to know on the topic.

About RERA 

The Real Estate Regulatory Authority (RERA), a division of the Dubai Land Department, oversees and regulates operations and standards in the real estate sector. Its responsibilities include creating and implementing policies and guidelines, overseeing the sector’s growth, and defining key regulations for international investors in Dubai. Moreover, RERA gathers data concerning tenants and property owners to resolve conflicts and related matters. It oversees the lawful practices of banks, developers, insurance, and legal firms and guarantees the trustworthiness of property advertisements in the media.

As part of its services, RERA offers a rental increase calculator, aiding landlords and tenants in determining the permissibility of proposed rental increases. With the recent release of the RERA Index, Dubai residents are eager to know whether they can expect rental adjustments this year. Utilizing the RERA rent calculator involves entering property type, contract expiry date, certificate number, certificate year, and current annual rent, followed by clicking the “Calculate” button for the result.

How to use the RERA Rental Calculator

To make use of the RERA calculator for assessing rental increase as per the law, adhere to the following procedure:

• Navigate to the official RERA website.
• Select the category of your property (whether it’s for living, business, industrial purposes, or staff accommodation).
• Choose the expiry date of your lease agreement from the provided drop-down options.
• Indicate if your inquiry is about an apartment or a villa.
• Pick the locality where you live.
• Enter specifics about your living space, including room count and the rent you pay annually.
• After completing the ‘Captcha’ verification, click on ‘Calculate’.

The calculator will then provide information on

• The prevailing rules for rent increment in Dubai.
• The current rental rates for properties similar to yours in your area (e.g. a one-bedroom apartment, studio, or villa).
• The highest possible rental increase permitted under the rental increment regulations.

The guidelines for rental increase are based on a tiered system that compares your current rent against the median rental price in the vicinity. Depending on the discrepancy between your rent and the average, your landlord might have the right to increase the rent by 5%, 10%, or 15% when renewing your lease.

The top advantages of using the RERA calculator

Simplified Verification Process

The RERA calculator promotes openness in real estate dealings by offering a reliable method to assess rent hikes. It especially helps tenants verify the fairness of their rent using the calculator’s data.

Enhanced Adherence to Legal Standards

Landlords are required to notify tenants about any rent increases at least 90 days before renewing the lease. If this rule isn’t followed, tenants have the right to reject the hike. The calculator is a useful tool for both parties to check if the increase complies with regulations.

Better Informed Choices

The RERA calculator provides essential data, aiding users in making informed rental decisions. It is recommended for tenants to utilize this tool during lease negotiations for better outcomes.

What is the Limit on Rent Increases for Landlords?

In Dubai, the cap on how much landlords can raise the rent is governed by the Real Estate Regulatory Agency (RERA) through the use of a Rental Increase Calculator. This tool is designed to protect the interests of both property owners and renters. Typically, rent can only be increased by up to 5% annually, though this figure may change depending on the type of property, its location, and the duration since the last rent increase. The RERA website provides a comprehensive Rental Increase Calculator to help both landlords and tenants calculate the maximum rent increase allowed for a specific property.

When is it Permissible for a Landlord to Raise the Rent?

The ‘Dubai Law No. 26 of 2007 Regulating Relations between the Landlord and Tenant in the Emirate of Dubai,’ commonly referred to as the Dubai Rent Law mandates in Articles 6 and 14 that landlords must issue a 90-day notice before any rent hikes. Tenants who are informed about a rent increase should verify that it is within the legal limits established by the Dubai Land Department, which can be checked using the RERA rent calculator.

What if the landlord wants to sell the property

For a landlord to legally terminate a lease and evict a tenant, they must provide one of four valid justifications and issue a 12-month notice of eviction.

Permissible grounds for eviction include:

• The landlord’s intention to sell the property.
• The landlord’s desire to occupy the property or have immediate family members move in, assuming no other suitable property is owned for this purpose (with prior submission of proof).
• The necessity for a significant renovation of the property renders it uninhabitable for the tenant during the renovation (with submission of renovation plans or permissions in advance).
• The requirement to demolish the property (with submission of proof in advance).

Conclusion

The RERA Rent Calculator is a helpful tool for anyone looking to rent property in Dubai, offering a starting point for negotiations and helping to set realistic expectations based on market data. By understanding how to use this tool and what factors influence rental prices, tenants and landlords can engage in fair and transparent rental transactions, contributing to the overall stability and integrity of the Dubai real estate market.