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Landlord wants to increase rent after one year, I know it's been done loads so sorry in advance!!

200
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Latest post on 2012/02/11 at 19:19:49
Hi everyone. We will of been in our villa one year in april. Our landlord wants to increase our rent by 28,000. He doesn't spend all his time in this country so has asked the estate agents that dealt with our contracts last year to deal with our renewal. We have said that as per RERA he isn't allowed to do this but they are saying if rents have gone up by a certain amount then they can increase. I've read on RERA's website that this information is correct but I thought it meant from the second year onwards. Is the estate agent correct and I've just understood it wrong?
I know that this subject has been covered a lot but I feel they are pressurising us and I want to make sure we have all the correct information.
Thanks
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Latest post on 2012/02/11 at 19:37:49
No can do until after 2 years. Even if value has gone up. RERA can tell you if house price where you live has gone up but will also advise LL cannot increase until after 2 years.

You need to call rera first then write an email or letter to your LL if your LL does increase or chooses not to renew your contract to put someone else in there at higher rent, RERA will take your complaint.
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Latest post on 2012/02/11 at 20:11:18
Thanks AussiePup, will give RERA a call in the morning. Will draft an email tonight so it's ready to send once I've finished talking to them
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Latest post on 2012/02/11 at 20:13:40
No increase in the first year. anyway.....where on earth have rents gone up sooooo much in the past year? The increase in rents as per the rental increase rates really only come into play for someone who has been in the same property for years and years - as you've only been in for less than a year he's just trying it on and the agents should be ashamed of themselves.
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Latest post on 2012/02/11 at 20:31:54
It's the fact that the agents were telling us this that made me question ourselves! Looking on dubizzle the rents for our type of villa have gone up by quite a bit but to be fair I don't think it's justified. We live on The Villa and where we are isn't landscaped and there are no community facilities. If little things like this were done I could perhaps understand such a big increase
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Latest post on 2012/02/11 at 22:24:39
Sarah, we are in The Villa too and have been through exactly the same thing last month. We have decided to move out eventually but it was our choice. If you want to stay in the villa for the same price, you don't worry; there is nothing the Landlord can do about it. It is true, the law has changed and they are indeed allowed to increase in the first year BUT only if the difference between the average market price and what you are paying is more than 25% . This is very unlikely for any property in Dubai. Use the RERA rental increase calculator to see if he qualifies for an increase but even if by miracle he does qualify he can only increase by max 5 %. You can trust this information as it is fresh and have been personally to RERA 2 times and got all my questions answered with regard to increase, renewal and security deposit. If you need more info email me at elenus79 at gmail.com and I will tell you everything you need to know as I seriously dislike Landlords like this. In which sector are you and what type of villa do you have?
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Latest post on 2012/02/12 at 10:18:36
Hi Sarah, have a look here http://www.rpdubai.ae/rpdubai/rentals/rental_increase_calculator.do?lang=0

It will give you an idea as to whether he has a cat in bells chance. We went thru jt last year too, he wanted 25% increase, but RERA told us he had to renew on same terms as it was our first renewal. As Eli1979 says I believe this to have changed now, and they have to use the calculator.

Good luck.
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Latest post on 2012/02/12 at 10:52:38
hi sarah, as everyone has said get on to RERA, Where do you work? Maybe best to look at moving with them doing that and even if you move in to another villa the rent will be high.
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Latest post on 2012/02/12 at 11:27:15
Thanks for the tip on the calculator, didn't know about that! According to the rera calculator he is not entitled to increase the rent. Also rang them just to confirm. They said to tell him to go to the calculator so he can see for himself and if he still tries to increase then we can take it to the rent committee.
Hi Eli79, tried to email you but it wouldn't send, not sure if I copied it down wrong but will try again later. We are in RH sector in an A2.
Hi elmsnre, he's tryin to increase by about 20%. Looking on dubizzle he just wants to increase to what seems about average for our property at the moment. We got ours for the average price last year though so I wonder if others are going through this at the same time. Annoys me that the agent seems to be working for the landlord even though he said he was also working for us.
We would rather not move right now as its just not the right time francescaevans. Our children seem very happy and settled and I don't think it's right to uproot because of a greedy landlord who is in the wrong. Thank you for the advice though
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Latest post on 2012/02/12 at 11:33:06
I can't get the calculator to work for me. Each time I try to use it it always says "rental index for the selected date is under the updating process...blah blah" Is it because of the server I'm using?
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Latest post on 2012/02/12 at 11:39:24
Tallybalt wrote:
I can't get the calculator to work for me. Each time I try to use it it always says "rental index for the selected date is under the updating process...blah blah" Is it because of the server I'm using?


won't work for me either..
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Latest post on 2012/02/12 at 12:01:50
I think it will only let you check upto a month in advance. So if you enter your expiry as 31st April it won't help. And then they do update it alot during which time it doesn't function.... So very hit and miss..
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Latest post on 2012/02/12 at 12:41:59
My husband couldn't get it to work on the laptop or his work computer at work but I've managed it with the iPad. Not sure why that is
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Latest post on 2012/02/12 at 12:45:10
emlsnre wrote:
I think it will only let you check upto a month in advance. So if you enter your expiry as 31st April it won't help. And then they do update it alot during which time it doesn't function.... So very hit and miss..


it wouldn't even let me put the date in...
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Latest post on 2012/02/12 at 13:27:41
... sorry to hijack, but after the second year what's the deal? If the rental increase requested by the LL is more that the RERA guidelines what's the deal?

Thanks

ps we're going into our second year ... as previously posted we paid 135k 2001-2012, LL said he'd had offers for 150-155K but would we be able to pay 145K, or pay 135K like last year, I think he was just trying it on - we said that we'd pay the same as last year as per the RERA guidelines and he just said ok!, thank Crunchie for EW!
edited by cymraes on 12/02/2012
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Latest post on 2012/02/12 at 13:34:06
cymraes wrote:
... sorry to hijack, but after the second year what's the deal? If the rental increase requested by the LL is more that the RERA guidelines what's the deal?

Thanks

ps we're going into our second year ... as previously posted we paid 135k 2001-2012, LL said he'd had offers for 150-155K but would we be able to pay 145K, or pay 135K like last year, I think he was just trying it on - we said that we'd pay the same as last year as per the RERA guidelines and he just said ok!, thank Crunchie for EW!
edited by cymraes on 12/02/2012


So pleased you got the right result. Yes the ll try it on! For your ext renewal te RERA guidelines are what you and your ll need to use. Max increase after first year renewal should be 5%
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Latest post on 2012/02/12 at 13:42:33
Just to clarify a point: if you are going into your, say, third year in the property with no rent increase between years 1 and 2 as per the RERA regulations, is the landlord still capped to raising your rent by only 5%? That's the one thing I can't figure out as as people have said rental raises are capped at only 5% per year and yet other people have paid more than a 5% increase.
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Latest post on 2012/02/12 at 14:30:09
Tallybalt wrote:
Just to clarify a point: if you are going into your, say, third year in the property with no rent increase between years 1 and 2 as per the RERA regulations, is the landlord still capped to raising your rent by only 5%? That's the one thing I can't figure out as as people have said rental raises are capped at only 5% per year and yet other people have paid more than a 5% increase.


As far as I read they can the increase can be within 25% of the rental index.
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Latest post on 2012/02/12 at 14:40:08
*Sarah* wrote:
Thanks for the tip on the calculator, didn't know about that! According to the rera calculator he is not entitled to increase the rent. Also rang them just to confirm. They said to tell him to go to the calculator so he can see for himself and if he still tries to increase then we can take it to the rent committee.
Hi Eli79, tried to email you but it wouldn't send, not sure if I copied it down wrong but will try again later. We are in RH sector in an A2.
Hi elmsnre, he's tryin to increase by about 20%. Looking on dubizzle he just wants to increase to what seems about average for our property at the moment. We got ours for the average price last year though so I wonder if others are going through this at the same time. Annoys me that the agent seems to be working for the landlord even though he said he was also working for us.
We would rather not move right now as its just not the right time francescaevans. Our children seem very happy and settled and I don't think it's right to uproot because of a greedy landlord who is in the wrong. Thank you for the advice though


sarah try again now: elenus1979@gmail.com
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Latest post on 2012/02/12 at 14:53:50
Chocs01 wrote:
Tallybalt wrote:
Just to clarify a point: if you are going into your, say, third year in the property with no rent increase between years 1 and 2 as per the RERA regulations, is the landlord still capped to raising your rent by only 5%? That's the one thing I can't figure out as as people have said rental raises are capped at only 5% per year and yet other people have paid more than a 5% increase.


As far as I read they can the increase can be within 25% of the rental index.


Excuse my naivety but does that mean I could expect a hike of up to 25% going into my third year? Or I could pay up to the max in my rental bracket - thanks again :-)
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Latest post on 2012/02/12 at 15:13:45
Just to clarify:

The landlord is allowed to have an increase at any time (first year, second year, third, whatever) provided the market price exceeds your rental by 25 %. The market price is not decided by the landlord o by the Dubizzle adds. The RERA calculator will provide that figure. If it does not work for you , you can call and get this info from them by phone.

And this is the law extract:
Article 1.
The maximum rent increase percentage of property units in the Emirate of Dubai leased before the enforcement of this Decree shall be as follows:

• a. There should not be any rent increase, if the rent for the real estate unit is up to 25% below the average similar rent.

• b. If the rent value was 26% to 35% less than the average similar rent, the maximum rent increase shall be equal to 5% of such value.

• c. If the rent value was 36% to 45% less than the average similar rent, the maximum rent increase shall be equal to 10% of such value.

• d. If the rent value was 46% to 55% less than the average similar rent, the maximum rent increase shall be equal to 15% of such value.

• e. If the rent value was less than 55% of the average similar rent, the maximum rent increase shall be equal to 20% of such value.

Article (2)

For the purpose of this Decree the similar rent value of the property unit means pursuant to “The Rent Index of the Emirate of Dubai” approved by RERA.(rental calculator)

Hope I managed to make it as clear as possible.
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Latest post on 2012/02/12 at 15:19:00
This is when I can legitimately claim a blond moment.

Can someone do the math for me? To keep things simple let's say you are paying 50,000 AED in rent but the actual market value as determined by RERA is 100,000 AED. Exactly how much can the landlord raise the rent? It looks like it would be 15%, thus 15% of 50,000, and therefore a rent increase of 7,500 AED?

But if your rent is 80,000 and the market value is 100,000. According to the articles, since the rent is within the "25% below the average similar rent," then the landlord is not entitled to any rent increase, not even the once-standard 5%? If this is true it does seem a bit unfair to the landlord that he can't raise the rent at all. If the tenant wants to stay in the property the landlord has no choice but to retain the same rent as in previous years even into the third/fourth/fifth year of the tenancy?
edited by Tallybalt on 12/02/2012
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Latest post on 2012/02/12 at 15:21:59
A practical example of the above post will be :

In your third, fourth or whatever year of tenancy you are paying let’s say 100 thousand per year, but the RERA index says the average rental for your type of property in your areas is 160 . In this case you are paying 60 % less then what the others are paying, so yes the landlord can ask for increase of 20 % max. So your new rent will be 120 thousand.
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Latest post on 2012/02/12 at 15:25:48
... lots of you clever ladies out there, thanks ;-)
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Latest post on 2012/02/12 at 15:32:01
Tallybalt wrote:
This is when I can legitimately claim a blond moment.

Can someone do the math for me? To keep things simple let's say you are paying 50,000 AED in rent but the actual market value as determined by RERA is 100,000 AED. Exactly how much can the landlord raise the rent? It looks like it would be 15%, thus 15% of 50,000, and therefore a rent increase of 7,500 AED?

But if your rent is 80,000 and the market value is 100,000. According to the articles, since the rent is within the "25% below the average similar rent," then the landlord is not entitled to any rent increase, not even the once-standard 5%? If this is true it does seem a bit unfair to the landlord that he can't raise the rent at all. If the tenant wants to stay in the property the landlord has no choice but to retain the same rent as in previous years even into the third/fourth/fifth year of the tenancy?
edited by Tallybalt on 12/02/2012

.
Yeap Tallybalt, that's exactly how it is. I am a Landlord myself and I do not find this unfair at all, it is the way it is. In some European countries, the laws to protect the families that rent are so strong that you cannot take them out even if they are not paying the rent or they destroy your property. Perfect example of this is Italy! Imagine life without RERA in the UAE -we will all be at the mercy of the landlords. I don't think I will be able to live here in such circumstances, as the companies never follow the market trend to increase the allowances
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Latest post on 2012/04/26 at 19:10:53
Has the RERA rental calculator disappeared? I get a 404 Error when I try the link below and can't find anything like it on the RERA website any more.
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Latest post on 2012/04/26 at 21:24:56
I couldn't get it either but I called RERA - 04 2221112 - and they told me over the phone in no time at all.
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Latest post on 2012/05/06 at 15:06:39
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Latest post on 2012/05/06 at 16:14:21
What happens if you sign a non-renewable contract the first year? Can you still involve Rera?
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Latest post on 2012/05/06 at 17:11:13
I'm pretty sure you forfeit your rights when you sign a non-renewable contract. Even if the landlord agrees for you to stay, then he can do pretty much what he wants with your rent as it's not bound by the previous year.

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