Can rents go up year after year?
Feb 10, 2023
Can rents go up year after year? Dubai
By   Internet
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Abstract: Five top tips on how UAE tenants can save big in the face of rising rents.

With rent increases in Dubai reaching an all-time high in 2022, tenants have received between 15 and 20 per cent increase notices this year.

 

Sarah Hewerdine, head of marketing at agency-owned property website Houza, said it can be a "painful time" for tenants to accept these rent hikes." However, they should know that the RERA (Real Estate Regulatory Authority) rent calculator is there to protect them and that there are always places where they can save money."

 

She said the typical term of an Ejari contract was 12 months and landlords were entitled to increase the rent every year, as long as it complied with the RERA calculator. The regulator has set a cap to protect tenants "in an active market like the one we have now".

 

- If the rent is 10% below market value, there will be no increase.

 

- If it is 11-20% below, the maximum increase can be 5%.

 

- If it is below 21-30%, the maximum increase can be 10%.

 

- If below 31%-40%, the maximum increase can be 15%.

 

- If below 40% or more, the maximum increase can be 20%.

 

Khaleej Times has compiled five points that tenants in Dubai can use to save on rent, based on an interview with Hewerdine of Houza.

 

This can help save on rent, but requires some sacrifice in terms of location.

 

If you're after a quality grade building with a great gym and pool, but aren't willing to pay a premium, then moving further away is your best bet.

 

If you are happy to compromise on the quality of your flat but want to live in the heart of Dubai Marina, then there are plenty of options in some of the older buildings.

 

Do your homework and do your due diligence on current market rents.

 

If you used to pay by four cheques and can now afford to do one or two, ask for a lower rent increase and opt to pay by larger instalments.

 

Ultimately, landlords want the less hassle for their tenants, so if you can make their lives easier, then you are already in a good position to negotiate.

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Can rents go up year after year?
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