Rent is, at times, the primary expense for any household, so tenants are inclined to want to pay as little as possible while getting the most for their money’s worth. How does one know if rent is being overpaid or underpaid? This is where the RERA Rental Increase Calculator is useful. Our guide has all the information.
About RERA
For those who do not know, RERA is the Real Estate Regulatory Agency. It is an agency of the Dubai Land Department (DLD), which governs the landlord-tenant relationship. Furthermore, RERA acts as the regulatory authority for any organisation or individual working in the real estate business in Dubai.
Rental Increase Calculator
Among RERA’s many responsibilities is the Rental Price Index in Dubai. This database records average rental prices, which are updated each year to bring transparency to rental transactions concerning properties in Dubai.
To make the Rental Price Index even more accessible and user-friendly for UAE citizens, RERA created the ‘Rental Increase Calculator.’ The calculator helps the user identify potential rent increases or the average ‘trending’ rent of any area within Dubai.
This is an online tool open to all Dubai residents. It is, therefore, an efficient database that allows residents to make informed decisions regarding renting in Dubai. Let us now consider how the RERA Rental Increase Calculator works.
How to Use Rera Rent Increase Calculator Online?
At any rate, if you are looking for a 1-bedroom flat for rent in Dubai or a bigger villa, the RERA calculator applies to you. The user-friendly RERA calculator compares the price of your property against the average costs of similar properties in your locality.
There are different methods to use the RERA rental price calculator. On the official DLD portal, choose a tab based on the information that is easily available. Your options for search include:
1. Title Deed Number
To search with the Title Deed Number, you will need current details about rent, certificate year, and other information.
2. Ejari Contract Number
Using the Ejari number to search with the RERA rental calculator Dubai means you only insert the contract number and view the current rent you are paying and its possible increase.
Before starting the process, you have to know the following:
- Current contract expiry.
- Property location/area and ownership model (if it is a freehold property).
- Property type (apartment or villa).
- Total bedrooms.
- Current annual rent.
- Once you have the information, follow these steps to use the RERA rent calculator.
- Log into the Dubai REST app or visit the Dubai Land Department’s official website to access the rent increase calculator RERA.
- Open the Inquiry about the Rental Index.
- Choose Access This Service and select the property type for which you are applying (residential, commercial or industrial).
- Fill in all relevant details into the RERA rent calculator, such as Property Type, Bedrooms, Area, Contract End Date and Current Annual Rent.
- Press the ‘Calculate’ button to get the answer for yourself. The average rents for that property type in the neighbourhood selected will show after clicking on the RERA calculator’s ‘Calculate’ button, also with the eligibility, if any, for rent increment.
- The RERA index rental calculator gives you information about the real worth of your property and whether the landlord charges more than the fair amount, if at all, in case you tend to rent villas in Dubai or move to apartments.
Define the RERA Rental Increase Calculator
Rentals in Dubai’s ever-fast-moving market have risen above what they were a few years back, and this has made tenants, as well as landlords, more concerned about whether their rent was being increased according to RERA and, if so, how much the increment was permitted.
To make an increase in rent legal, it must fulfil some conditions:
- A rent increase can only occur when a tenancy contract is renewed. No increase can happen while the tenancy is in progress.
- Before the tenant’s renewal date comes, the landlord must give the tenant a minimum of 90 days’ notice of any increase in the rent, calculation-wise.
Rent increase admissible as per the RERA rental increase calculator depends on current rent vis-a-vis the market rate.
There are the following rules:
- Increasing a property’s rent is not permitted when the annual rent is currently less than 10 per cent of that of the rental index.
- If the present annual rent is between 11% and 20% less compared to that of the rental index, a maximum increase in rent can be 5%.
- If the present annual rent is not less than 21% and up to 30% less than that of the rental index, an increase allowed is a maximum of 10%.
- If the present annual rent is higher than the rental index by 31%, the maximum permissible increase shall be 20%.
Benefits of Using the RERA Rent Calculator in Dubai
The RERA rent calculator in Dubai promotes transparency in the real estate markets. It allows tenants to know whether an increase in their rents would sound fair while justifying landlords if their demands for rent increases fall within the legal limits.
Here are some other advantages of the RERA calculator:
- Propagate legal compliance, particularly as this would require landlords to notify a tenant of any change in rental increase in rent inclusive of this, at least 90 days before the contract’s renewal date.
- Thus, it allows tenants not to be caught unawares with rental contract fluctuations.
- With the RERA rent calculator, all stakeholders can make decisions based on clear and accessible data.
- While providing accurate market insights as bases, landlords are empowered to alter their rental prices, and tenants can now negotiate their leases successfully.
Factors that Influence the Rera Rental Index
In Dubai, the RERA rental index and RERA rent calculator are updated every year for a balanced image in the real estate market. Factors affecting the RERA rental index include;
- Location: Prime location is a major determinant of how the RERA rental index would be impacted. Property situated in prime areas such as Downton Dubai, Palm Jumeirah or even Dubai Marina would translate into high rentals because of the increased demand and the very limited availability of such exclusive properties.
- Property Features: Though it has many features that the landlord could effectively exploit—from the living space and maintenance through to furnishing and amenities—its size and number of bedrooms are the two aspects factored in by the RERA rental index and calculator.
- Economic Factors: Factors like health growth in the job market or foreign investments may attract more people to Dubai, making the competition in rental prices stiffer. Instead of this, so much stagnation in the economy usually makes tenants move to more affordable areas and this might lead to a slow fall in rents as well.
Who Should Use the RERA Rental Index Calculator?
The RERA Rental Index Calculator is meant for use by both tenants and landlords. It clarifies the rental market and ensures fair rents.
1. For Tenants
- Tenants can use the RERA Rental Index Calculator Dubai to make informed decisions about renting an apartment. It helps them:
- Determine if the current rent charged is okay—The tenants could know if they are being charged fairly by comparing their rents with the market value.
- Check if the landlord can legally hike rent. The calculator shows whether any rent increase is according to legal guidelines to avoid any unfair increase.
- Assure themselves that they do not end up paying more for a rental property – The Tenant compares the rental prices through the calculator and negotiates better terms with landlords.
- Arrangements for future rent increases- Notice of the timing and quantum of rent increases gives a tenant a chance to budget adequately.
- Settle issues with landlords- If the landlord imposes an unreasonable increase, the tenant can argue against it using the rental index as evidence.
2. For Landlords
- This RERA Rental Index Calculator can also be helpful for landlords in handling their rental business smartly.
- Check whether a rent increase is possible- This calculator checks whether a rent increase is possible as per RERA.
- Know that the rent amount is by the market—By using the RERA Calculator, landlords ensure that their rental prices are competitive within the market.
- Avoid tenant litigation—By keeping themselves updated with the rental index, landlords can avoid fights with tenants over rent hikes.
- Attract prospective tenants- Reasonable and competitive rent creates a higher chance of getting permanent tenants.
Misconceptions About the RERA Rental Index Calculator
The RERA Rental Index Calculator has indeed become a very common tool for many, and yet some wrong impressions still exist about it in Dubai. Here are some predominant fallacies with the realities behind them:
1. The Calculator Approves Rent Increase All the Time
People often assume that the Rent Increase Calculator Dubai always approves of the increase; this is not true. A rent increase is only allowed when the rent is much less than the market value on the RERA Rental Index. Rent cannot be increased if it is within 10% of the market rate.
2. The Rental Index that Remains Fixed and Unchangeable
Many think that the RERA Rental Index is unchangeable and never updated. This, however, is not true. The RERA Index is evaluated annually by the Dubai Land Department (DLD) and given an update to reflect the changes that have taken place within the rental market within the same period. Such changes ensure that prices remain aligned with market trends.
3. The Calculator Applies Only to Residential Properties
It is also one of the misinterpretations that the calculator for RERA rental index Dubai has only been intended to be used commercially, relating to rental properties. The tool applies to both residential and commercial. Apartment, villa, office, and the RERA Calculator will work for all and inform you if the rent adjustment is allowed according to the law.
4. The Tenants Can Challenge the Results
People think that the results of the RERA Rental Index Calculator can never be contested. However, tenants can approach RERA or the Dubai Land Department and raise a complaint if they feel that their rents are increased unjustifiably. The authorities then investigate to check if the increase has been done through appropriate legal means.
5. The Rental Index Covers All Areas of Dubai Equally
Some believe that the RERA Rental Index is uniformly applying the same rental rates in all areas of Dubai. This, however, is not true as rental prices are different depending on location, property types as well as demand, and the Rental Index Calculator gives customised results depending on the specific area where the property is.
6. The Calculator Decides the Exact Rent Amount
The RERA calculator does not fix a particular rental price but tells whether any rent increase can be made legally and, if so, to what extent. Thus, the final rental price depends on negotiation between the tenant and landlord.
How Eastern Housing UAE Makes Your Search for the Best Rental Property Easier?
Finding the most suitable rental property in Dubai is never a piece of cake, but Eastern Housing UAE simplifies things with expert advice and market insights. The consultancy team is well-versed in the RERA Rental Index, helping tenants find properties at reasonable prices. With Dubai’s real estate market know-how, they ensure high-quality homes in prime locations are found while maintaining compliance with rental laws. To seal the deal, Eastern Housing UAE also offers rental agreement advisory services to ensure that tenants understand their rights and obligations fully.
Final Thoughts
The RERA Rent Calculator is a significant part of Dubai’s real estate market as it sets prices to be fair and compliant with the law. Whether a tenant is attempting to ensure the measured price of rent or a landlord is trying to obtain a legal rent increment, both can get transparent and accurate results with the help of this Rental Index Calculator.
Hence, Dubai remains a place where properties are rented through the regulated and stabilized rental market, which is useful for both owners and renters.
FAQs
When is it possible to raise rents?
Matching the law, the landlord has to notify the tenant about an increase in the rent at least 90 days before the renewal of the contract. If he does not do so, the tenant will not have to accept the increase.
What important particulars must be remembered about rent increases in Dubai?
RERA recommends the use of the Rental Increase calculator for tenants and landlords during rental contract negotiations. Existing and new tenants need to check the Rental Price Index through the RERA rent calculator at the start or end of their computerised renting contracts in Dubai.
