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UAE Property: Landlords Free to Set Rent Prices Without Limitations

**Tenant Concerned Over Rent Increase:**

A tenant residing in a two-bedroom apartment in Dubai, previously rented directly from the landlord at Dh45,000 ($12,253) annually, is facing a significant rent hike following the transfer of property management to a rental company. The tenant, NA, received a notice from the rental company stating that the rent would increase to Dh65,000 per year, marking a substantial 46% rise. Seeking clarification on the legality of this increase, NA reached out for advice.

**Legal Analysis:**

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Responding to NA's query, legal experts scrutinized the situation and sought clarification regarding the landlord's status. They highlighted the necessity of understanding whether the landlord's passing away or transfer of property management led to the involvement of the rental company. Moreover, they emphasized the importance of verifying the rental company's authority to act on behalf of the landlord, urging NA to request pertinent documentation for validation purposes.

**Rent Increase Protocol:**

Addressing the rent increase, legal advisors outlined the mandated procedures. They stressed that any notification of rent adjustment must be formally communicated in writing, with a minimum 90-day notice period provided to the tenant. Additionally, they emphasized that rent increments are governed by the Real Estate Regulatory Agency's rental calculator, with a maximum annual increase capped at 20%, subject to regulatory provisions.

**Tenant-Landlord Dispute Resolution:**

In a separate inquiry, a landlord sought guidance on dealing with a tenant who manipulated rent negotiations during the COVID-19 pandemic and failed to fulfill utility payments and property maintenance responsibilities. Advised by legal experts, the landlord was encouraged to file a case with the Rental Dispute Settlement Committee (RDSC) to address grievances.

**Navigating Dispute Resolution:**

Providing insight into the process, experts detailed the steps for initiating a case with the RDSC. They highlighted the option for online submission via the Dubai Land Department's official website or the Dubai Rest app, emphasizing the necessity of Arabic documentation. Alternatively, they recommended a visit to the RDSC center in Deira for personalized assistance and guidance.

**Conclusion:**

In both cases, legal counsel underscored the significance of seeking resolution through formal channels, ensuring fair treatment and adherence to regulatory guidelines. While navigating tenant-landlord disputes can be complex, leveraging legal avenues such as the RDSC offers a structured approach to resolving conflicts and upholding rights and responsibilities for both parties involved.

May 9, 2024 5:46 p.m. 8724

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