To calculate the permissible rental increase in Dubai, landlords and tenants can use the RERA (Real Estate Regulatory Authority) rental increase calculator. This online tool helps determine whether a rental increase complies with Dubai’s legal guidelines.
Understanding Rental Increase Calculation in Dubai
In Dubai, the Real Estate Regulatory Authority (RERA) provides a useful rental increase calculator to guide both landlords and tenants in calculating rental increases based on current market conditions and legal limits.
This calculator takes into account several factors, including the property type, location, lease expiration date, and current rent amount, to determine whether a rental increase is allowed.
Steps to Calculate Rental Increase Using the RERA Calculator
1. Gather Required Information:
Before using the calculator, ensure you have the following details:
- Property type (residential, commercial, industrial, or staff accommodation)
- Location or area of the property
- Ownership status (freehold or non-freehold)
- Property type (apartment, villa, etc.)
- Total number of bedrooms
- Contract expiration date
- Current annual rent
2. Access the RERA Calculator:
- Visit the Dubai Land Department website or use the Dubai REST app.
- Navigate to the “Inquiry about the Rental Index” section.
3. Input Information and Calculate:
- Enter the required property details accurately.
- Provide your certificate or title deed number along with the year.
- Click the “Calculate” button to view your results.
4. Review the Results:
The calculator will display typical rental prices for your property type and area. It will also show whether the current rent is below market value and if any increase is permitted within legal limits.
Permitted Rental Increase Guidelines in Dubai
According to Dubai’s Rental Price Index, the following guidelines determine the allowable rental increase:
- No increase if the current annual rent is less than 10% below the market rate.
- A 5% increase is allowed if the rent is 11%–20% below market value.
- A 10% increase is allowed if the rent is 21%–30% below market value.
- A 15% increase is allowed if the rent is 31%–40% below market value.
- A 20% increase is allowed if the rent is more than 40% below market value.
By following these steps and guidelines, both landlords and tenants can easily calculate rental increases in Dubai using the RERA rental increase calculator, ensuring that all practices are in line with legal regulations.
