Khaleej Times, Sunday, Feb 19, 2023 | Rajab 28, 1444
Dubai: Does Rera rent calculator apply to new tenancy contracts?
Emirates:
Question: I have found an apartment that I like in Dubai. However, its
rent is higher than other similar properties in the area. Can I challenge this?
Does the RERA calculator apply to new Ejari contracts?
Response: Pursuant to your queries, as you feel the rent of an
apartment in Dubai which you intend to rent is high, the provisions of Law No.
33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between
Landlords and Tenants in the Emirate of Dubai (the ‘Amended Rent Law of Dubai’)
are applicable.
In Dubai, a landlord and tenant may mutually agree on the rent before signing a
tenancy contract and registering an ‘Ejari’. In the event they are unable to,
either of them may approach the Rental Dispute Centre of Dubai (the ‘RDC’). This
is in accordance with Article 9 of the Amended Rent Law of Dubai, which states:
“1. Landlords and tenants must specify Rent in Lease Contracts. Where the
parties fail to specify the Rent and it is impossible to prove the Rent agreed
upon by them, the Rent shall be the rental value of similar Real Property.
2. The Tribunal shall determine the rental value of similar Real Property taking
into account the criteria for determine the percentage of Rent increase
prescribed by RERA; the prevailing economic situation in the Emirate; the
condition of the Real Property; the prevailing rental value of similar Real
Property in other similar Real Property markets within the same area; the
provisions of any legislation in force in the Emirate regulating Real Property
Rent, and any other factors which the Tribunal deems appropriate.”
It may not be possible for you to challenge the higher rent offered by the
landlord of the apartment you intend to rent as currently there is no
landlord-tenant relationship. Further, even if you enter into tenancy contract
with the landlord on the specified rent, it may not be possible for you to
challenge the same as it is implied that you have agreed on the terms and
conditions of the tenancy contract, including the rent.
The rent of an apartment in Dubai may be decided amicably between a landlord and
a tenant prior to signing the tenancy contract or may be challenged by the
tenant if he or she feel it is high at the time of renewal of the tenancy
contract as mentioned in Article 13 of the Amended Rent Law of Dubai.