Landlord’s Right to Increase Rent
Overview
The landlord-tenant relationship in Dubai is primarily governed by Dubai Law No. 26/2007 On the Organisation of the Relationship between the Lessors and Tenants in the Emirate of Dubai as amended by Dubai Law No. 33/2008 Amending Dubai Law No. 26/2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai. These laws establish the framework for tenancy agreements and regulate the landlord’s right to increase rent.
The legislative purpose is to strike a balance between protecting tenants from arbitrary or excessive increases and ensuring landlords receive a fair return on their investment. Rent increases are closely linked to criteria issued by the Real Estate Regulatory Agency (RERA), with disputes adjudicated by the Rental Disputes Settlement Committee (RDSC).
This Practice Note explains the following:
legal framework governing rent increases;
conditions, notice requirements, and procedural safeguards;
role of RERA and the RDSC in determining permissible increases; and
exceptional circumstances in which rent increases may be disallowed.
Definitions
RERA: Real Estate Regulatory Agency which is the regulatory authority empowered to set rent increase criteria and maintain the rental index.