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Dubai: Does Rera rent calculator apply to new tenancy contracts?
A KT reader asks if it is possible to challenge a higher than usual rent
Question: I have found an apartment that I like in Dubai. However, its rent is higher than other similar properties in the area. Can I challenge this? Does the RERA calculator apply to new Ejari contracts?
Response: Pursuant to your queries, as you feel the rent of an apartment in Dubai which you intend to rent is high, the provisions of Law No. 33 of 2008 Amending Law No. 26 of 2007 Regulating the Relationship between Landlords and Tenants in the Emirate of Dubai (the ‘Amended Rent Law of Dubai’) are applicable.
In Dubai, a landlord and tenant may mutually agree on the rent before signing a tenancy contract and registering an ‘Ejari’. In the event they are unable to, either of them may approach the Rental Dispute Centre of Dubai (the ‘RDC’). This is in accordance with Article 9 of the Amended Rent Law of Dubai, which states:
“1. Landlords and tenants must specify Rent in Lease Contracts. Where the parties fail to specify the Rent and it is impossible to prove the Rent agreed upon by them, the Rent shall be the rental value of similar Real Property.
2. The Tribunal shall determine the rental value of similar Real Property taking into account the criteria for determine the percentage of Rent increase prescribed by RERA; the prevailing economic situation in the Emirate; the condition of the Real Property; the prevailing rental value of similar Real Property in other similar Real Property markets within the same area; the provisions of any legislation in force in the Emirate regulating Real Property Rent, and any other factors which the Tribunal deems appropriate.”
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It may not be possible for you to challenge the higher rent offered by the landlord of the apartment you intend to rent as currently there is no landlord-tenant relationship. Further, even if you enter into tenancy contract with the landlord on the specified rent, it may not be possible for you to challenge the same as it is implied that you have agreed on the terms and conditions of the tenancy contract, including the rent.
The rent of an apartment in Dubai may be decided amicably between a landlord and a tenant prior to signing the tenancy contract or may be challenged by the tenant if he or she feel it is high at the time of renewal of the tenancy contract as mentioned in Article 13 of the Amended Rent Law of Dubai.
Ashish Mehta is the founder and Managing Partner of Ashish Mehta & Associates. He is qualified to practise law in Dubai, the United Kingdom and India. Full details of his firm on: www.amalawyers.com. Readers may e-mail their questions to: news@khaleejtimes.com or send them to Legal View, Khaleej Times, PO Box 11243, Dubai.
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