Go Back  PPRuNe Forums > PPRuNe Worldwide > Middle East
Reload this Page >

Dubai to Allow Rent Jumps of as Much as 20%

Middle East Many expats still flying in Knoteetingham. Regional issues can be discussed here.

Dubai to Allow Rent Jumps of as Much as 20%

Old 8th Jan 2014, 11:52
  #21 (permalink)  
Thread Starter
 
Join Date: Mar 2010
Location: slightly right of the MCP
Posts: 110
Likes: 0
Received 0 Likes on 0 Posts
I really appreciate the input guyz. I got encouraged from the responses on here, and decided to call RERA to inquire about the new regulations, and whether they allowed my landlord to haphazardly up my rent.

Boy wasn't i pleasantly surprised, they told me not to accept any increment from my landlord, since from the info i was giving them, with regards to when i moved into the property and how much i was paying for it, i fell under the nil increment category. They advised me to be firm and if my LL gave me any trouble i should just call them up and they will deal with my case.
I emailed my LL and told him that i was rejecting the new contract with the 10pcnt increment, citing the advise from RERA as my reason.

I'm happy to say that i just received a new contract with exactly the same rent as last years! woo hoo!

@Beady eye, your info on the new regs. is spot on, thanks for posting.

If anyone has doubts about what their new rent should be, my advice to you is call RERA, they will be in a position to assist.
odericko2000 is offline  
Old 8th Jan 2014, 18:09
  #22 (permalink)  
Beady Eye
 
Join Date: Feb 2001
Location: UK
Posts: 1,495
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by odericko2000 View Post
@Beady eye, your info on the new regs. is spot on, thanks for posting.
Afwhan, it's cut n paste of the decree really
Originally Posted by odericko2000 View Post
If anyone has doubts about what their new rent should be, my advice to you is call RERA, they will be in a position to assist.
Alternatively use the RERA Rental Calculator :: eServices ::
BDiONU is offline  
Old 8th Jan 2014, 18:18
  #23 (permalink)  
 
Join Date: Nov 2002
Location: meh
Posts: 662
Likes: 0
Received 0 Likes on 0 Posts
The old calculator said 10% and current calculator says...


The rent for a Three bedrooms Villa in Xxxxxxxxx of 200000 to 240000 AED per year.
Rent is lower by 30% of the average rent for the type of unit you have chosen .
According to the law governing change, your rating category is (form 21% to 30%)
The rate of increase for this category is 10%


Same same. Again, my guy gave us ZERO increase 15 days ago. Local guy who I won't name here yet is well and truly involved in Emaar. Some of these land lords are smart enough to cross reference their required income versus property sitting empty for two, three or more months. Most are not. The bubble will come and pop again. I pick August this year.
Plazbot is offline  
Old 8th Jan 2014, 18:37
  #24 (permalink)  
 
Join Date: Jan 2014
Location: London
Posts: 4
Likes: 0
Received 0 Likes on 0 Posts
Thumbs up laws /email

mate,

my work is moving me over asap, would love to have a copy if you would be so kind?

Is it still valid following the changes?
flyingblade is offline  
Old 8th Jan 2014, 19:14
  #25 (permalink)  
 
Join Date: Sep 2000
Location: Danger - Deep Excavation
Posts: 337
Likes: 0
Received 0 Likes on 0 Posts
Be careful going to RERA

Careful Odericko.

Your landlord might refuse to renew your contract in 12 months time.

We threatened our landlord with going to RERA when he wanted a 10% rise this year "you have cheap appartment" for the 2nd year of our stay when legally we are entitled to keep the same rent.

His response was simple "If you go to RERA (and keep the same rental) I won't renew your contact next year"

Dubai Greedy B*stards Club doing well hey?
We compromised on 5%
It's near the only school we could find at the time which would take both our kids....
DCS99 is offline  
Old 9th Jan 2014, 03:37
  #26 (permalink)  
Beady Eye
 
Join Date: Feb 2001
Location: UK
Posts: 1,495
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by DCS99 View Post
Your landlord might refuse to renew your contract in 12 months time.
<snip>
His response was simple "If you go to RERA (and keep the same rental) I won't renew your contact next year"
Illegal, by law you must be given 12 months notice of eviction and he can only evict for 1 of 4 reasons. Otherwise the contract rolls over for another 12 months.

Article 24 (2)

2. Landlord may demand eviction of tenant upon expiry of tenancy contract limited to the following cases:
a. If the owner wishes to demolish the property for reconstruction or to add new constructions that prevent tenant from benefiting from the leased property, provided that necessary licences are obtained.
b. If the property requires renovation or comprehensive maintenance which cannot be executed while tenant is occupying the property, provided that a technical report issued by Dubai Municipality or accredited by it is to be submitted to this effect.
c. If the owner of the property wishes to recover the property for use by him personally or by his next of kin of first degree provided that he proves that he does not own a suitable alternative property for that purpose.
d. If the owner of the property wishes to sell the leased property.
And for the purpose of clause (2) of this Article, Landlord must notify tenant with reasons for eviction at least twelve months prior to the determined date of eviction subject that such notice be sent through the Notary Public or by registered mail.
BDiONU is offline  
Old 9th Jan 2014, 03:48
  #27 (permalink)  
Beady Eye
 
Join Date: Feb 2001
Location: UK
Posts: 1,495
Likes: 0
Received 0 Likes on 0 Posts
Originally Posted by flyingblade View Post
would love to have a copy if you would be so kind?
Unfortunately my ESP isn't working, so I don't know your email address
Originally Posted by flyingblade View Post
Is it still valid following the changes?
See post number 22.


For anyone else who is renting/thinking of doing so be warned that LL and estate agents (hawk, spit!) will try all sorts of tricks to deny you your rights under the laws of Dubai, including but not limited to denying such laws exist, saying they don't apply in this case, saying the laws have changed and completely ignoring them. Don't be suckered into any of that BS.

Law Number 26 of 2007. This was the original law established and knows as the “Law Regulating Relationship between Landlords and Tenants in the Emirate of Dubai No. 26 of 2007”.

Law number 33 of 2008. This law amended some of the provisions of law 26 and is the current law.
BDiONU is offline  
Old 2nd Feb 2014, 04:56
  #28 (permalink)  
 
Join Date: Mar 2003
Location: Dubai
Posts: 768
Likes: 0
Received 0 Likes on 0 Posts
From the Satirical press panarabiaenquirer.com

Landlord Awards showcase the very best in Dubai rent increases

There were tears and cheers last night as the Landlord of the Year Awards made an emotional return to Dubai. The glittering event, last held in 2008, welcomed over 500 of the city’s most notorious property owners, many of whom expressed delight that their industry had finally emerged from the difficulties of the financial crisis.

“It just makes me shudder remembering was it was like back then. With rent prices plummeting along with opportunities to completely bleed our tenants dry, they were dark times indeed,” said Mahmoud Al Sansa, who owns 27 properties across Dubai.

“But I can proudly say that the tide has now turned and we’re well and truly back to our absolute best. One annual cheque is the norm once more and yearly rates are going up faster than we can evict people and draw up new contracts. I’m super pleased that these wonderful awards have now returned too.”

Among those present was renowned proprietor Reza Meshuggnah, four times winner of the prestigious Most Ludicrous Rent Hike Award. Speaking before the ceremony, he expressed his confidence in making it five. “My rents are now more than twice what they were in were in 2009, I’m sure to win,” he said.

However, Meshuggnah lost out to rival Mohammed Schneider, who has managed to hike his rents by almost 300 per cent since Dubai won the Expo2020 bid in November. “Just you wait and see how much I’m charging when the Expo actually comes to town,” he beamed tearfully.

The coveted Utter Bastard Of The Year gong went to Hassan Hassan O’Reilly, who successfully brought to trial 43 tenants for non-payment of rent for properties that have never existed.

However, the night’s biggest cheer was saved for the closing celebration, the Lifetime Achievement Award, which went to one of the industry’s most respected names, Omar Bakhra. The Iranian businessman – largely credited as the first landlord to require 12 months payment upfront, plus 10 per cent administrative charges – this year made history when he successfully demanded three years rent in advance for a studio apartment in the Marina.

“You’re an inspiration to us all,” said the show’s host Dom Locksmith on presenting Bakhra with his award.
ruserious is offline  
Old 5th Feb 2014, 14:46
  #29 (permalink)  
 
Join Date: Nov 2004
Location: UK
Posts: 59
Likes: 0
Received 0 Likes on 0 Posts
The rents v. purchase prices mentioned in this thread suggest that buying is a no brainer. Maybe I'm missing something?
Erwin Schroedinger is offline  
Old 5th Feb 2014, 15:09
  #30 (permalink)  
 
Join Date: Dec 2006
Location: KUL
Posts: 431
Likes: 0
Received 0 Likes on 0 Posts
Maybe I'm missing something?
Patience. The bubble is about to burst. Same as 2008. Buy AFTER the bang when everybody bets on Dubai being finished for good. It won't be. Yet.
MrMachfivepointfive is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Thread Tools
Search this Thread

Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell or Share My Personal Information

Copyright © 2023 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.