Guide to RERA Rent Increase Calculator 2024

The Dubai government has introduced various platforms for real estate buyers, investors, and renters. Developed by the Real Estate Regulatory Agency, the Rental Increase Calculator is a user-friendly tool that provides accurate and up-to-date information on RERA rent increase laws in Dubai.

Whether you're a tenant or a landlord, this Dubai property rental calculator ensures transparency and compliance with local regulations, helping you make informed decisions about rental adjustments. Our guide covers everything about the RERA Rental Increase Calculator, your essential instrument for confidently navigating Dubai's rental market!

What is the RERA Rent Increase Law?

Before discussing the Rental Increase Calculator, let’s first understand the RERA Tenancy Law. The law is designed to regulate and cap rental increases, ensuring fairness and transparency in the real estate market. The Real Estate Regulatory Authority (RERA), a unit of the Dubai Land Department, enforces the law.

RERA strives to improve the real estate industry's transparency, accountability, and efficiency. It protects buyers' and developers' interests by combating fake listings, providing dispute resolution mechanisms, and taking various other measures.

In December 2013, His Highness Sheikh Mohammed bin Rashid Al Maktoum, the Vice President and Prime Minister of the UAE and the Ruler of Dubai, issued Decree No. 43. One of the principal elements of the decree is the creation of a rent index, which acts as a reference for setting allowable rent increases.

According to the Rent Increase Decree, landlords can raise the rent upon lease renewal or when initiating a new lease. However, the decree limits the maximum rent increase based on the gap between the current rent and the average rates in the same vicinity, preventing tenants from facing excessive and unaffordable rent increases.

For more information about the Dubai Rental Index Calculator, you can visit the DLD Awareness Portal.

About the Dubai Rental Index Calculator

The RERA Rental Increase Calculator works according to the RERA rental index, which is updated annually. This tool is essential for ensuring that any proposed rental increase aligns with the legal framework set for Dubai's rental market.

The Rent Calculator Dubai Land Department requires data points such as property location, size, category (residential, commercial, industrial, staff accommodation), type (apartment or villa), the current market value of the property, the total number of bedrooms, the end date of the contract, and current annual rent.

The permissible rent increase is calculated based on how much lower the current rent is compared to the average market rent for similar properties in the same location. The specific limits are as follows:

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

How to Use the RERA Rental Increase Calculator

Using the RERA Calculator is straightforward and can be done through the Dubai Land Department (DLD) website or the Dubai REST app. Here are the 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 contract 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.

Guide to RERA Rent Increase Calculator 2024 | Provident Estate

RERA Rental Calculator 2024 Update

The 2024 updates to the rent law in Dubai set clear limits on rent increases based on current rental value compared to market value. Moreover, the decree mandates that landlords give tenants a minimum of 90 days' notice before any rent hike is applied. This notice period provides tenants with 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. Let’s find out how the calculator facilitates landlords and tenants.

For Landlords:

The revamped calculator employs a more data-driven approach to reflect current market trends, providing landlords with 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 safeguards them against exorbitant 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.

FAQs

The Real Estate Regulatory Authority (RERA) is a unit of the Dubai Land Department. It is a key institution tasked with overseeing and regulating the operations and standards of the real estate sector. One of its significant tools is the rental increase calculator, which helps landlords and tenants determine whether a proposed rental increase is permitted.
Before diving into the RERA Rental Increase Calculator, let's answer a common question: What is indexed rent? Indexed rent refers to an annual rent increase set by an amount specified in the lease agreement. This increase is predetermined during contract negotiations between the tenant and landlord, eliminating the need for further discussion when the increase takes effect.

The Real Estate Regulatory Agency (RERA) rental increase calculator is typically used for long-term residential and commercial rental properties in Dubai to determine the permissible rental increases based on the current rental index. However, holiday homes, also known as short-term rentals, are generally not subject to the same regulations as long-term rentals.

Despite the law, some landlords may attempt to impose illegal rent increases. If the rental calculator indicates that an increase is not allowed, tenants should use the calculator as evidence in discussions with their landlord. If the dispute remains unresolved, tenants can lodge a dispute with the Rental Dispute Settlement Centre.

Permissible rent increases do not exceed 5% annually, varying by property type and location.

Rent increases are permissible only once annually at lease renewal.

As of the latest updates, the Dubai Land Department and RERA frequently update regulations to ensure fairness and transparency in the real estate market. Key aspects include:

Rental Disputes: Clearer guidelines and processes for resolving rental disputes.
Rent Increases: Restrictions and guidelines on permissible rent increases as detailed above.
Eviction Notices: There are specific conditions under which landlords can issue eviction notices, such as selling the property or using it for personal use, with a 12-month notice required.

It's advisable to check the latest updates directly from the Dubai Land Department or official announcements for the most current laws.

The RERA rental index is a tool developed by the Real Estate Regulatory Agency to provide an average rental rate for various property types in different areas of Dubai. This index is updated regularly and helps determine fair rental values and allowable rental increases. The index considers various factors, including location, property size, type, and market trends.

To access the RERA index:

Visit the DLD website: Navigate to the rental index section.
Enter Property Details: Provide information about the property type and location.
View Index Rates: The index will show the average rental rates for similar properties in the area

For more information, get in touch with us at Provident