UAE Property: 'My landlord wants to raise my rent by more than the DLD rental index limit'

A view of Dubai Marina. Under the law, no landlord is allowed to evict the tenant in order to re-let the property to someone else. Bloomberg

Question: My landlord has just sent the lease renewal but instead of the 10 per cent increase specified on the Dubai Land Department’s rental index, he is trying to increase it by 15 per cent.

The 90-day renewal notice window passes next week, so if the landlord doesn’t reissue a compliant lease renewal with the correct amount before the window closes, do I have a case?

Am I within my rights to ask the landlord to renew on my existing terms as they did not send a DLD-compliant lease renewal to me?

Also, for the past few years, the lease has always been two cheques but in this renewal, they’ve tried to change to one cheque. Is this further grounds for the renewal notice being non-compliant? MH, Dubai

Answer: A landlord firstly has a 90-day window to inform you of any changes to a renewal rental contract.

These changes need to be agreed upon, such as the number of cheques and, of course, this would also need to be reasonable.

When it comes to the rental increase, a landlord is only permitted to raise the rent by the amount the DLD rental index allows. So, if it states 10 per cent is permitted, then only 10 per cent is what should be agreed upon, unless you are happy to pay the higher amount.

If the 90-day window is missed, you are quite within your right to request the renewal be along the exact same terms and conditions as before, so nothing legally can change.

However, despite the landlord aiming to increase the rent by more than the permissible amount, it would still amount to a communication between the parties.

All that has happened is that there is no agreement given the landlord’s stance.

Any disagreements between the parties related to the above can only be decided by filing a case at the Rental Dispute Centre, which will then judge who is in the right based on the law.

Q: I got an eviction notice from my landlord citing the reason as intent to sell. The property has now been sold to an investor.

May I know what are my rights? Can the investor evict me now or only renew the contract? AS, Dubai

A: Under normal circumstances, a buyer who becomes your landlord can now continue to use the same original eviction notice in terms of the timing.

However, it is important to note that if the buyer is an investor, no landlord is allowed to evict the tenant in order to re-let the property to someone else.

Therefore, my opinion is that the investor would need to renew the contract with you should you wish to do so.

Remember that the 90-day rule is also in place, so if this window is missed, the new landlord cannot alter the contract or any of its clauses in any shape or form.

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If the investor/landlord does not agree and wishes to continue with your eviction, I would advise you to file a case at the Rental Dispute Centre and let the judge of the day advise you accordingly.

Q: Do I need to be in Dubai to file a case against my tenant who has defaulted on his rental payment as I live overseas?

Alternatively, can a property agent do this on my behalf if I give them authorisation? AP, Dubai

A: You can file a case from overseas by visiting the Dubai Land Department website, which is www.dubailand.gov.ae, and follow the steps.

This can sometimes be a bit daunting, especially if one is not familiar with the system, so the other alternative other than to come to Dubai and file a case in person, would be to appoint a power of attorney who can file a case on your behalf by visiting the DLD offices in Deira.

The cost of filing a case is 3.5 per cent of the rental amount, but please remember that there will be additional costs of translation into Arabic and typing costs, etc.

Mario Volpi is head of brokerage at Novvi Properties and has worked in the property sector for 40 years in London and Dubai. The opinions expressed do not constitute legal advice and are provided for information only. Please send any questions to [e-mail]