Did you receive a rent increase notice? Learn how to use the Rera calculator to assess equity

It is a simple tool that gives you quick results; Here’s a step-by-step guide.

Rental prices often change in Dubai, rising or falling depending on market conditions such as supply and demand. So how can you make sure you don’t pay too much?

During lease renewal, tenants may receive a rent increase notice, as landlords can increase rents annually. However, they must follow the rates set out in the Dubai Rental Index and cannot exceed them.

The Real Estate Regulatory Agency (Rera) of the Dubai Land Department (DLD) offers an online tool called the Rera calculator. It helps determine the justified rent increase and shows the average rates of the real estate market with just a few clicks.

Here is a step by step guide:

• Step 1: Check your lease/Ejari contract

You’ll need to enter some details from your lease, so keep that ready.

Click the ‘Services’ tab and then select ‘Popular Services’ or ‘Informational’. Look for the ‘Rental Rate Inquiry’ option which will take you to the calculator.

• Step 3: Access the service

Once you click ‘continue’ and ‘access service’, you will find a form to fill out. Enter details about your residence: contract end date, property type, area, number of rooms and current annual rent.

Click on the ‘calculate’ button and the result will appear. It will tell you the average rent for a property in your area and the maximum percentage increase in rent. You can export this result as PDF.

How the increase is calculated

According to the information available on the DLD website, here is how the calculation works:

• If the rent is 10 percent less than market value, there is no increase.
• If it is 11 to 20 percent lower, the maximum increase can be up to 5 percent.
• If it is 21 to 30 percent lower, the maximum increase can be up to 10 percent.
• If it is 31 to 40 percent lower, the maximum increase can be up to 15 percent.
• If it is less than 40 percent or more, the maximum increase may be up to 20 percent.

News Source: Khaleej Times