If the new rental amount exceeds the index, the tenant can file a complaint
The law states that if the rent exceeds the official index, the tenant can pursue the matter even if they have signed the contract.
Sometimes the story of renting a house in Dubai does not end with the number written in the contract.
A tenant has renewed their two-bedroom apartment lease with a 15% increase, but soon realized that two of their neighbors, with similar units, had no increase at all. The simple question is: Can one object to this difference when the contract has been signed?
According to the landlord-tenant relationship law in Dubai, the first principle is that the rental amount must be specified in the contract. If it is not specified, the determining criterion is the prices of similar properties in the same area.
However, the more important point is this: the amount of rent and even its increase is an agreement between the owner and the tenant, provided that it does not exceed the ceiling set in the 'Dubai Rent Index.' This index is determined by the Dubai Land Department and is the main legal basis for rent increases.
In simpler terms, just because your neighbor has not had an increase does not necessarily mean that your increase is illegal. At the time of renewing the contract, payment conditions or even mutual agreements can make prices different.
But there is a red line:
If the new rental amount exceeds the permissible range of this index, the tenant can pursue the matter.
In such cases, the proposed course of action is:
First, direct negotiation with the owner for an amicable resolution.
And if no result is achieved, checking the rental amount against the official index and, in case of discrepancy, filing a complaint with the Dubai real estate market regulatory authority.
Ultimately, this situation reminds us that in the Dubai rental market, signing a contract does not always mean that all avenues are closed; sometimes it is still possible to go back and check whether the amount you are paying is truly in accordance with the law or not.
Source: Gulf Times
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