Rent Increase
#1
Rent Increase
What are the current rules on rental increase?
I have a private landlord who owns the apartment and they have asked for a 15% increase on the new contract. I thought you could only increase 7% year on year??
I have a private landlord who owns the apartment and they have asked for a 15% increase on the new contract. I thought you could only increase 7% year on year??
#2
BE Forum Addict
Joined: Sep 2009
Location: Abu Dhabi
Posts: 1,805
Re: Rent Increase
In abu dhabi, I understand there was a 7% cap that was reduced to 5%. Providing you give the correct notice period you have an automatic right to renew your tenancy for 4 years at the end of the first lease.
#3
Re: Rent Increase
correct, although for leases renewed after Q4, 2010 the landlord can kick you out at will, so in effect no rent cap.
#4
Re: Rent Increase
Are you in Dubai or AD? If Dubai, I would tell them that you are not going to renew, there are lots of bargains out there.
#5
Re: Rent Increase
There's no reason to pay any premium in Dubai.
It'll be a renters market for a long time. Now is a good time to move to a better apartment.
#6
Re: Rent Increase
To be honest, we are paying slightly under the rate advertised for the same development, but I was under the impression that the landlord cannot increase above the cap (what is this currently?)
#7
Hit 16's
Joined: Mar 2010
Location: Of all the gin joints, in all the towns, in all the world, she walks into mine
Posts: 13,112
Re: Rent Increase
My understanding is that in Dubai the landlord can only increase the rent by a max of 5%, and then only after the second year. Just dealing with a tenancy agreement for one of our guys where the (Brit) landlords want a clause stating that the tenancy is only for 1 year, after which the landlord has the right to terminate, and if there is continuation it will be under a new agreement with a new price. We've rejected it--it really is a buyer's market now, and even in AbDab everything's negotiable.
#8
Lost in BE Cyberspace
Joined: May 2008
Posts: 5,125
Re: Rent Increase
the rules differ slightly from ad to dxb. in dxb you cannot have a rental increase in the second year and then they are decided each year, currently at 5&. in abu dhabi you can have an increase every year, currently 5%. but with this new law they are bringing in come next november, they can evict you with 2 months notice if you are paying way under the market rates etc. it was originally 7% which was knocked down a few years ago to 5%. so first of all in which emirate are you talking about?
#9
Lost in BE Cyberspace
Joined: May 2008
Posts: 5,125
Re: Rent Increase
and quite often in ad i know, they do increase more than the 5% because there was not any recourse, but hopefully with the new rules it should make it better in that respect.
#10
Re: Rent Increase
Well I spoke to Better Homes and they said because the contract will be on its second year, the landlord cannot increase at all. You can only increase on the 3rd year and then only by 5% !