RERA Rental Increase Calculator: Your Guide to Navigating Dubai’s Rental Market.

With the introduction of several platforms by the Dubai government, navigating the real estate market has become much more straightforward for buyers, investors, and renters. Among these, the Rental Increase Calculator developed by the Real Estate Regulatory Agency (RERA) stands out as an intuitive tool providing accurate and up-to-date insights into rental increase laws in Dubai.

Whether you are a tenant or a landlord, the RERA Rental Increase Calculator ensures transparency and compliance with local regulations. This guide will walk you through everything you need to know about this tool, your essential companion for navigating Dubai’s rental market confidently.

Understanding the RERA Rent Increase Law

Before diving into the Rental Increase Calculator, it’s crucial to understand the RERA Tenancy Law. This law aims to regulate and cap rental increases, ensuring fairness and transparency in the real estate market. The Real Estate Regulatory Authority (RERA), a division of the Dubai Land Department, enforces this law.

RERA is committed to enhancing the transparency, accountability, and efficiency of the real estate industry. It safeguards the interests of buyers and developers by combating fraudulent listings, providing dispute resolution mechanisms, and implementing various measures.

In December 2013, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, issued Decree No. 43. This decree established a rent index as a reference for setting allowable rent increases. According to the Rent Increase Decree, landlords can raise the rent upon lease renewal or the commencement of a new lease. However, the decree sets maximum limits on rent increases based on the difference between the current rent and the average rates in the same area, preventing tenants from facing excessive and unaffordable rent hikes.

How Does the Dubai Rental Index Calculator Work?

The RERA Rental Increase Calculator operates based on the RERA rental index, which is updated annually. This tool is vital for ensuring that any proposed rental increase aligns with the legal framework of Dubai’s rental market.

To use the Rent Calculator provided by the Dubai Land Department, you must input data points such as the property’s location, size, category (residential, commercial, industrial, staff accommodation), type (apartment or villa), current market value, the total number of bedrooms, the end date of the contract, and the current annual rent.

The permissible rent increase is calculated based on how much the current rent falls below the average market rent for similar properties in the same location. Here are the specific limits:

• No increase if the current rent is less than 10% below the market value
• 5% increase if the rent is 11-20% below the market value
• 10% increase if the rent is 21-30% below the market value
• 15% increase if the rent is 31-40% below the market value
• 20% increase if the rent is more than 40% below the market value

Steps to Use the RERA Rental Increase Calculator

Using the RERA Calculator is straightforward and can be done via the Dubai Land Department (DLD) website or the Dubai REST app. Follow these steps to calculate the rent increase:

Access the RERA Rent Calculator: Visit the Dubai Land Department (DLD) website or download the Dubai REST app.

Choose the Appropriate Tab: Select the relevant option, such as Title Deed Number, Ejari Contract Number, residential, commercial, industrial, staff accommodation, or location map.

Enter Required Information: If you choose Title Deed Number, input your current rent, the certificate year, and other necessary details. For the Ejari Contract Number, simply enter your contact number. For Residential, enter the lease contract end date, property type (apartment or villa), and area you are living in, along with the number of bedrooms.

Provide Current Rent Information: Enter your current annual rent. If you do not have this information, you can leave this field empty.

Calculate Rent: After filling in all the details, click “Calculate Rent” to get the average annual rent based on current market trends.

Review the Results: The calculator will provide the average rental value for similar properties in your area and indicate if a rent increase is applicable.

2024 Updates to the RERA Rental Calculator

The 2024 updates to Dubai’s rent law establish clear limits on rent increases based on the current rental value compared to market value. Moreover, the decree requires landlords to give tenants at least 90 days’ notice before any rent hike is applied. This notice period provides tenants ample time to assess their options and make appropriate decisions about their living situations. This law ensures that rent increases are controlled and justified, preventing arbitrary hikes and protecting tenants from excessive rental demands. Here’s how the updated calculator facilitates both landlords and tenants.

For Landlords:

The revamped calculator uses a more data-driven approach to reflect current market trends, giving landlords a precise picture of fair rental values for their properties. This tool can be particularly useful when setting initial rents or negotiating renewals.
The new system might limit the maximum permissible rent increases, especially for properties with higher rents than the market average. Although annual rent increases are still allowed, the hikes may be less significant than previously permitted.

For Tenants:

Tenants benefit from a more accurate reflection of market value, which protects them from excessive rent increases proposed by landlords. The calculator provides a benchmark to evaluate the fairness of a proposed rent and aids in negotiation.
Enhanced transparency helps tenants find properties for rent within their budget more easily. The calculator offers a starting point for rental searches, allowing tenants to concentrate on areas that align with their financial capabilities.

The RERA Rental Increase Calculator is a crucial tool for landlords and tenants in Dubai, promoting transparency and fairness in the rental market. By understanding and utilizing this tool, landlords and tenants can make informed decisions that align with the legal framework and market trends, ensuring a balanced and equitable rental environment.