Unexpected Rent Hike? Know Your Rights!

Imagine receiving your rent renewal notice only to find an unexpected increase that seems unfair. Sound familiar? The good news is that rental law in Dubai is there to protect tenants from being subjected to exorbitant rent hikes.

Understanding Dubai Rental Law

Dubai’s rental market is governed by Law No. 43 of 2014, which tries to cap rent hikes in the expectation of deterring landlords from levying arbitrary rent hikes. Rent hikes must be linked to the RERA Rental Index, which sets the percentage hike or zero according to market levels.

Rent Increase Caps & the 90-Day Rule

The rent cap system ensures that increases align with market trends:

✔ No increase if your rent is less than 10% below the market rate
✔ Up to 5% increase if rent is 11–20% below the market rate
✔ Up to 10% increase if rent is 21–30% below market rates
✔ Up to 15% increase if rent is 31–40% below market rates
✔ Up to 20% if rent is over 40% under market value

Important:
90-Day Written Notice – Landlords must notify tenants at least 90 days before lease renewal if they intend to raise rent. Without notice, you are not obligated to accept the increase.
One Increase Per Year – A landlord can only adjust rent once at renewal, ensuring stability for tenants.

How to Protest an Illegal Rent Increase in Dubai

If your landlord is demanding an unjustified increase in rent, do the following to protect yourself

1. Check the RERA Rental Index – Use the RERA Rent Calculator on the Dubai Land Department website to verify the legal rent cap.
2. Review Your Lease Agreement & Notice – Ensure the increase follows legal guidelines and was communicated at least 90 days in advance.
3.  Negotiate with Your Landlord – Present the RERA index data and calmly discuss the increase. Some landlords back down when they see tenants are informed.
4.  File a Complaint with the Rental Dispute Centre (RDC) – If negotiations fail, you can file a case within 30 days of receiving the notice. RDC fees vary based on rent amount but can be refunded if the dispute is settled amicably.

The Smart Rental Index 2025

Dubai has unveiled the Smart Rental Index 2025, an artificial intelligence-driven platform that ensures transparent and fair rent increases.

How It Works:

🔹 Uses real-time market data to regulate rent increases
🔹 Rates properties based on building quality, amenities, and maintenance (1 to 5-star rating)
🔹 Prevents arbitrary rent hikes by enforcing a data-driven approach

Example:

A tenant in Business Bay pays
AED 55,500 for a 2-bedroom apartment, against the market average of AED 95,000. If rent is 40% below the market, the law limits it to a maximum of 15% (AED 8,325). But if the rent is already at the market level, then it cannot be raised.

Why This Matters for Tenants & Landlords

•  Tenants get transparency & protection – No arbitrary rent hikes, only data-backed increases.
•  Landlords gain stability & fair pricing – Ensuring rental rates align with market trends.
  Through knowing your rights, using the RERA calculator, and utilizing the Smart Rental Index, tenants and landlords are in a better position to approach Dubai’s rental market with ease.
  Keep up to date and make your rental contract equal!