Dubai tenant signed 15% rent hike while neighbours pay less: Can it be challenged?

Question: I recently renewed my two-bedroom apartment contract in Dubai with a 15 per cent rent increase last month. Two of my neighbours, who have similar units with the same amenities, had their contracts renewed with no rent increase. Can I challenge mine given that I signed it?

Answer: Pursuant to your query, the provisions Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the “Dubai Tenancy Law”), is applicable.

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In Dubai, the rent must be specified in a tenancy contract. If the owner of a property and a tenant fail to specify the rent in the tenancy contract, the rent will be determined based on rent of similar property. This is in accordance with the Article 9 of the Dubai Tenancy Law.

Further, the rent amount and payment terms are subject to the agreement between an owner of a property and a tenant, provided that the agreed rent does not exceed the  maximum threshold set by the Dubai Land Department (“DLD”) rental index and as per Dubai Decree No. 43 of 2013 On Determining the Increase in the Real-Estate Rentals in the Emirate of Dubai on rent increases.

In accordance with the aforementioned, the owner of a property in Dubai may, as a matter of general practice, determine rent amounts at its discretion based on the timing of a new lease, lease contract renewal or the number of instalments agreed between the parties, provided that such practice is in compliance with the applicable rental index as prescribed by the Dubai Land Department (DLD) Rental Index.

You may initially discuss this with the owner of your property to amicably resolve this matter. Further, you may verify the compliance of your current rent by consulting the DLD Rental Index available on the DLD’s official platform. If the rent charged does not align with the prescribed index, you may consider raising the matter before the Real Estate Regulatory Agency for appropriate redressal.

Applicable law: Law No. (33) of 2008 Amending Law No. (26) of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai 

Ashish Mehta is the founder and managing partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm are on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai. 

Disclaimer: The information provided above is intended for general guidance and does not constitute legal advice. It is recommended to seek formal legal counsel.