Rent is often the primary expense for any household, leading to tenants wanting to pay as little as possible to ensure the best value for their money. So, how do you find out whether you’re overpaying or underpaying your rent? That’s exactly where the RERA Rental Increase Calculator comes in handy. Our guide has all the details.
For those unfamiliar with RERA, the Real Estate Regulatory Agency is part of the Dubai Land Department (DLD), which regulates the relationship between a landlord and a tenant. RERA is the regulatory authority for all organisations and individuals involved in Dubai’s real estate sector.
RENTAL INCREASE CALCULATOR
One key aspect that RERA is responsible for is maintaining and updating the Rental Price Index in Dubai. This database documents the average rental prices and is updated yearly to maintain transparency in rental transactions across properties in Dubai.
To make the Rental Price Index easily accessible and user-friendly for UAE residents, RERA introduced an online service, the ‘Rental Increase Calculator.’ Known as the RERA calculator, it helps users identify the possible rent increase and the average ‘trending’ rent of any area in Dubai.
This online service is free for all the residents in Dubai and is an effective way to make informed decisions about renting in Dubai.
Let’s look at how the RERA Calculator Dubai 2023 works.
HOW TO USE THE RERA RENTAL INCREASE CALCULATOR?
You can use the RERA calculator if you want a 1-bedroom flat for rent in Dubai or a larger villa. Using the RERA calculator is simple and takes a few taps on the REST app. The RERA calculator compares your property’s price with the average costs of similar properties in your area.
You need to know the following details before starting the process.
- Property type: residential, commercial, industrial or staff accommodation
- Current contract expiry
- Property location/area and ownership (if it is a freehold property)
- Property type (apartment or villa)
- Total bedrooms
- Current annual rent
Once you have the information, follow these steps to use the online RERA rent calculator.
- Log into the Dubai REST app or visit the Dubai Land Department’s official website.
- Open the “Inquiry about the Rental Index”
- Enter all the relevant information into the RERA rent calculator, such as Certificate No. Certificate Year, Property Type, Contract End date and Current Annual Rent
- Click on the ‘Calculate’ button to get your result
Once you click the ‘Calculate’ button on the RERA calculator, the screen will show you the average rents in your area for your selected property type and whether or not you are eligible for a rental increase.
If you plan to rent villas in Dubai or move to apartments for rent, the information provided by the RERA rent calculator will help you know the actual value of the property you are renting. You will also figure out whether or not your landlord is charging you more than the fair amount.
PERMITTED RENT INCREASE AS PER RENTAL PRICE INDEX DUBAI 2016
As per the latest Rental Price Index in Dubai, a landlord can follow this framework of rental increases.
- The rent cannot be increased if the current annual rent is less than 10% below the market value.
- If the current rent is between 11% and 20% below the market value, the landlord can increase the rent by up to 5%.
- If the current rent is between 21% and 30% below the market value, the landlord can increase the rent by up to 10%.
- If the current rent is between 31% and 40% below the market value, the landlord can increase the rent by up to 15%.
- If the current rent is more than 40% below the market value, the landlord can increase the rent by up to 20%.
- If you are already paying within the range mentioned, no rental increase is applicable.
FAQS ABOUT THE RERA RENT INCREASE CALCULATOR
WHEN IS A RENT INCREASE ALLOWED?
As per the rules, the landlord must inform the tenant about increasing rental prices at least 90 days before contract renewal. If this condition is not met, the tenant can reject the increase.
WHAT ARE SOME THINGS TO CONSIDER ABOUT THE RENTAL INCREASE IN DUBAI
RERA encourages tenants and landlords to use the Rental Increase Calculator when negotiating leasing contracts. A quick check of the Rental Price Index using the RERA rent calculator must be done by existing and new tenants when renting apartments in Dubai.
HOW CAN LANDLORDS USE THE RERA RENTAL INDEX 2023 CALCULATOR?
Landlords should use the RERA calculator to determine whether they are eligible to increase the rents of the housing units they are leasing. According to the current RERA Tenancy law, landlords can only demand a rental price increase three months before the expiry date of a rental contract.
WHAT ARE THE RIGHTS OF A TENANT IF A LANDLORD FAILS TO COMPLY WITH THE RULES?
As a tenant, you should remember that if your landlord fails to comply with these rules, you can reject the rental increase. If the RERA rent calculator suggests that the asking rent is well over the range mentioned, you can complain to your landlord and request a decrease. However, if the discussion isn’t successful, you can file a complaint with Dubai’s Rental Dispute Settlement Centre (previously known as RERA Rent Committee). Here is the procedure for filing a rent dispute case in Dubai.
WHAT ARE THE THINGS A TENANT SHOULD CONSIDER BEFORE RENTING A PROPERTY?
Dubai has strict rules when it comes to the rights of tenants. To avoid problems, make sure you know about the things to consider before renting a property. Being aware of the different RERA forms can also be helpful.
There we have it! Everything you need to know about the rent calculator in Dubai. We hope you found this article on the RERA Rental Increase Calculator Dubai helpful. If you want to know about other regulatory frameworks in Dubai, check out our feature on Ejari in Dubai.
For more property-related information about Dubai and the other emirates in the UAE, stay tuned to MyBayut.