Key Takeaway
A landlord cannot increase the rent annually during a multi-year lease contract unless specifically agreed upon by both parties. Building amenities are included in the rental contract without additional charges unless otherwise stated in the agreement.
Are you locked in a three-year lease and wondering about your rights when your landlord demands a rent increase? A reader recently faced this exact situation, questioning whether a 20% increase was legally allowed during their ongoing contract.
The Case: Unexpected Rent Increase During a Long-Term Lease
One year into a three-year villa rental agreement, our reader received an email from their real estate office requesting a 20% rent increase. Additionally, the office demanded payment for previously free amenities such as the swimming pool and gym.
The reader’s lease stated that the landlord had the right to increase rent according to the rental index calculator, but was this mid-contract increase legitimate?
What Dubai Law Says About Rent Increases
According to Article 1 of Decree No. 43 of 2013 on Determining Real Estate Rental Increases in Dubai, the maximum allowed increase is 20% of the rental value when the property’s current rent is decreased by more than 40% compared to the average market rate.
However, Article 13 of Law No. 33 of 2008 (amending Law No. 26 of 2007) clearly establishes that a landlord can only implement a rent increase prior to the expiry of the Lease Contract. In this specific case, that means not before the full three-year term has elapsed.
Negotiating Rent Increases
For lease renewals, landlords and tenants may amend contract terms or reconsider increasing or reducing rent before the contract expires. If both parties cannot reach an agreement, the Rent Dispute Settlement Centre (the Tribunal) may determine a fair rent based on criteria specified in Article 9 of the law.
Building Amenities: Included or Extra?
Regarding building facilities such as swimming pools and gyms, Article 11 of Law No. 26 of 2007 stipulates that amenities are considered part of the property without additional payment unless explicitly stated otherwise in the lease agreement.
The law states: “Unless otherwise agreed, the Rent will cover use of the Real Property amenities such as swimming pools, playgrounds, gymnasiums, health clubs, car parks, and other amenities.”
Protecting Your Tenant Rights in Dubai
To safeguard your interests as a tenant in Dubai:
- Read your contract thoroughly before signing
- Keep formal communications with your landlord or property management
- Know the legal notice periods (90 days before contract expiry for any changes)
- Understand RERA’s rental index to verify if proposed increases align with regulations
- Seek legal advice when faced with questionable demands
Bottom Line
If you have a multi-year lease contract in Dubai, your landlord cannot arbitrarily increase the rent each year unless specifically agreed upon in your contract. Additionally, building amenities should be included in your rent unless your contract explicitly states otherwise.
When in doubt about your rental rights in Dubai, consulting with a legal specialist who focuses on property law can help clarify your position and possible courses of action.
Have a question about Dubai rental laws? Share your concerns in the comments below or contact our legal experts at JobXDubai for personalised guidance.
Disclaimer: This article provides general information and should not be considered legal advice. For specific situations, please consult with a qualified legal professional.
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