I own an apartment in downtown Dubai and this is let at a current rent of Dh98,000. According to the Rera (Real Estate Regulatory Agency) calculator I can increase this up to Dh102,900 at the expiry/renewal date on February 6, 2015. I met with the tenant on October 21, 120 days before renewal, to inform the tenant that the rent will be increased and also exchanged email with regards to this where the tenant confirmed that she will accept the increase. I sent her the actual contract a few days ago and the tenant replied saying that I should have sent her the contract 90 days before renewal so the terms are not valid. We had met and agreed, as well as it being set out in an email and the increase was agreed in good faith. Where do I now stand? NY, Dubai
A landlord may increase the rent payable in line with the limit shown on the Rera calculator and must give the tenant notice of at least 90 days prior to renewal in respect of any increase. At that point the landlord does not have to specify the exact amount of the increase, provided that they give the correct amount of notice and advise that it will be in accordance with the calculator. The annual contract need only be issued at the time of renewal and not months beforehand. In this scenario, NY is correct in applying the increase and as the tenant had previously accepted this and not given 60 days notice of leaving, the tenancy will renew at the increased rate.
Keren Bobker is an independent financial adviser with Holborn Assets in Dubai, with over 20 years of experience. Contact her at keren@holbornassets.com. Follow her on Twitter at @FinancialUAE.
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