RERA Rental Increase Calculator – USE IT

The RERA Rental Calculator is a superb tool for anyone involved in the property rental industry. Use it to negotiate your rent.

Updated 27-December-2014  

Dubai has a great little calculator waiting to be discovered by you, the RERA Rental Increase Calculator. Anyone can use it at any time although if it is being updated you may get a message asking you to contact them. Try again or try a different date as the only restriction is that it covers only 3 months from the date of query.

This is a way for landlords and tenants to have a realistic expectation of the market rental value of the property. We’d love to hear your landlord/tenant stories at Rant n Rave.

It’s important to register your Tenancy Contract with Ejari to ensure your rental information is added to the database from which the RERA Rental Increase Calculator gathers its data.  The other reason is that you will need the Ejari Certificate for any disputes in the Dubai Rental Dispute Centre as well as some other Dubai Government agencies.

It’s a very useful tool for anyone in the property industry and if you are new to the rental market in Dubai you can check the RERA Rental Increase Calculator for the average rent to ensure that your real estate agent or landlord is being fair and their rental offer is in line with the current market.

Some landlords and tenants may see the RERA Rental Increase Calculator as slightly unfair.  For example, all 1 bedroom flats in Jumeirah Lake Towers (JLT) are listed with one rental price. In reality, some towers are ‘better’ than others –  some towers have flats with a larger/smaller area (usually calculated and written in sq ft in Dubai). It is understood that RERA are currently looking at this.  However, the view, storey height, quality of build etc are also important variable indicators of rental prices so how far RERA will take this into account in any future design of the rental calculator is difficult to predict. At the moment, though, you have an excellent way of evaluating the rental value of your property, whether as a tenant or as a landlord.

Please be aware that the rental rates quoted and statement issued at the bottom of the Rental Calculator page is used by the Government agencies.  Sometimes it’s  good to negotiate with the landlord and keep things on a friendly basis. To this end, although the calculator may not provide any increase, you may wish to consider a small uplift. On the other hand, the landlord may see that there is a rental increase which may be higher than would be acceptable to the tenant. Again, negotiations are the key here.  We’ll add a ‘Negotiating your Rent’ guide soon.

If you are new to the Dubai tenancy scene the rates are in black and white in the calculator, unfortunately, though landlords are looking for high rents so expect to see advertising above the rental value provided by completing the calculator. As a landlord, you can check the rental calculator to give you a fair rental rate for your property to help you decide on an advertising strategy.  If you have a real estate agent who is worth their salt then he/she should be advising you. The rental calculator has been simplified for your benefit.

Completing the Details

Tenancy Contract Expiry Date

You can use the calculator for up to a 3 month period in advance of your contract expiring.   This timeline is set because tenants and landlords have a 90 day window to negotiate their contracts and the landlord must give written notification 90 days before expiry of the lease.

Main Area – Deira, Bur Dubai or Freehold

Freehold is the term used for areas where an expat can purchase a property, e.g. Dubai Marina, Business Bay etc.  It is more than likely that the majority of people checking the Rental Calculator will use the Freehold button.

Property Type – Apartment or Villa

The Rental Calculator provides information on residential properties, industrial properties, commercial properties and staff accommodation.  The default setting is residential.

Area (Location)

This is the actual location of the property and there is a drop down list of areas in the freehold areas of Dubai. Select your area – unfortunately, it’s not in alphabetical order yet. Please also be aware that at the moment Jumeirah Lake Towers and Jumeirah Beach Residence are listed as JLT and JBR respectively.  So, check the list carefully.  Some other changes have been made in the list of areas. Deira includes areas such as Mirdif and Al Warqa.  Bur Dubai includes Al Mankhool, Al Safa and Jumeirah.  This information should be on your Tenancy Contract. Bedrooms – studio, 1 bedroom, 2 bedrooms etc Current Annual Rent – you can type this in with or without the separation comma. The system will automatically adjust.  The increase is in increments of 1 dirham so it’s best to type the figure in. Then click on ‘Calculate Rental Increase’.

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A notice in red will appear and explain if you are allowed any increase in rent.  This is an example only.  Please add your own information and press the button for the system to calculate the rental. This is a great tool. Use it as a negotiating tool with the landlord/owner/broker. This is meant to help regulate the marketplace. Use it! Use it! Use it!

Don’t be afraid to pass a screen shot of the information to your landlord/owner/agent. It is important. If a Landlord/Owner/Agent wants you to move out – you have rights. They must produce a 12 month written notice to quit.

Please don’t think there is no-one to help you. If you’re stuck send us an email and we’ll find out who you should be speaking to.

The advice provided in our columns does not constitute legal advice and is provided for information only. Readers are encouraged to seek appropriate independent legal advice.

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