The Real Estate Regulatory Authority (“RERA”) has set up a new requirement recently for landlord who wish to apply for rent re-evaluation services in the Emirate of Dubai.
In a recent change from the previous practice of evaluating rents in the Emirate of Dubai, starting from 1 April 2024, Landlords can apply to RERA for a rent re-valuation if they believe that they deserve a rent higher than the one indicated by the Rental Index, though they must attach a legal order or a judgment to their re-evaluation request.
The previous practice required landlords only to pay a fee to the Dubai Land Department for rental valuations if they wished to adjust the market benchmark set by the outdated calculator, but with RERA’s new requirement and development, such requests must be accompanied with a supportive legal order.
Persuant to RERA’s new requirement, Landlords who wish to apply for re-evaluation must submit their request through the Rental Dispute Centre (“RDC”) and file a case to obtain the necessary legal order. This requirement applies to all rent re-valuation requests submitted as of 1 April 2024 and onwards.
RERA has updated its Rental Index in March 2024, allowing landlords to raise rents in line with rental growth in the Emirate of Dubai in accordance to the RERA’s index, but cannot do that without a legal order. It is believed that this new shift in rules would provide better transparency to tenants and fairness in applying the rental benchmarks.
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