If you are living in Dubai you might ask yourself: How much rent should I pay in Dubai? The Dubai Real Estate Regulatory Agency has released the Rent Calculator Dubai. In this article, you will get all the information you need to understand what the Dubai Rental Increase Calculator is.
The Dubai rent calculator, also known as the RERA (Real Estate Regulatory Agency) rental increase calculator, is an electronic service provided by the Dubai Land Department (DLD) to determine the permissible rent increase for properties in Dubai. The calculator is based on Decree Number 43 of 2013, which sets out the rules for rent increases in the emirate.
How does the Dubai Rent Increase Calculator Works
To use the calculator, visit DLD website and provide the following information:
- Contract End Date: Enter the end date of your lease contract.
- Property Type: Specify whether the property is villa or apartment
- Area: Select the specific community or district where the property is located.
- Number of Bedrooms: Enter the number of bedrooms in the property.
- Current Annual Rent: Enter the total annual rent you currently pay.
Once you input this information, the calculator compares the price of your property with the average prices of similar properties in your area and provides the following results:
- Estimated Annual Rent: The calculator shows the estimated annual rent range according to the current market trend.
- Rent Increase: If the rent is below the market value, the calculator indicates the amount of increase allowed.
To understand the logic behind the rental increase calculator, let’s take a look at the question: What is the maximum rent increase allowed in Dubai?
- No increase: If the rent is less than 10% below the average similar rent.
- 5% increase: If the rent is between 11% and 20% below the average similar rent.
- 10% increase: If the rent is between 21% and 30% below the average similar rent.
- 15% increase: If the rent is between 31% and 40% below the average similar rent.
- 20% increase: If the rent is more than 40% below the average similar rent.
In the below example, we have calculated the rent increase for a one-bedroom apartment in the area of Dubai Marina.
Application and Purpose
The RERA rental increase calculator is designed to ensure transparency and fairness in rental transactions. It helps landlords and tenants determine whether a proposed rental increase is allowed or not, thereby reducing disputes and promoting a mutually beneficial relationship. The calculator is accessible through the DLD website and the ‘Ejari’ smart application.
Updates and Relevance
The RERA rental index is updated annually to reflect changes in the market. The calculator is a valuable tool for both landlords and tenants, as it provides a clear and standardized framework for determining rent increases. The calculator is particularly useful for tenants who want to ensure they are not overpaying for their rent and for landlords who need to comply with the regulations set by the DLD.
The Rera Rent Calculator Dubai is a user-friendly tool that helps determine the permissible rent increase for properties in Dubai. By following the guidelines set out in Decree Number 43 and using the calculator, landlords and tenants can ensure that rent increases are fair and compliant with the law.
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