RERA Rental Increase Calculator

This amazing rental increase calculator is an online tool that calculates the percentage of potential increases in rent of certain properties. The RERA rental increase calculator gives you immediate feedback.

We’ve had a chance to speak with a real estate expert, Nimrah Rao from NR Luxury Properties about how the RERA rental increase calculator works, you won’t have to worry about overpaying rent or overcharging it with these insights.

How Does It Work?

The RERA rental increase calculator helps landlords see how much wiggle room they have to make more money, but it depends on what kind of accommodation you’re looking for.

It takes into account the type of accommodation, the contract date, the type of the property itself, and the location naturally. But, it also takes into account the annual rate at this moment.

When you enter all of those things you’ll get exactly how much you can charge rent for a specific rental property. If the rent is already too high, then you wouldn’t be able to increase it, but we’ll get into it a little later.

Government Agency for Real Estate

DLD is a government body that oversees and regulates anything related to real estate in Dubai. It was established in 1960 in need of a regulatory body for registration of transactions related to real estate in Dubai.

The main purpose is the regulation of selling and purchasing properties and land. This body also regulates property registration and provides licensing for companies and individuals that deal in real estate. The body deals in thorough research of the market value of properties.

You can access the Dubai Land Department website and go through their services with ease. There’s property information, and services you can apply for, and you can even perform transactions related to real estate and documentation in the process.

The DLD established a regulatory framework that allows them to enforce laws and regulations regarding real estate. There are two legal frameworks in place, RERA Law, and Strata Law. Other regulations exist for property ownership, development, and leasing. The standards are there to prevent market value inflation.

Apart from it being the key component in dealing with real estate in Dubai, it’s also a major contributor to Dubai’s economy. The DLD offers a platform where real estate transactions are transparent and efficient. So, the main services the DLD provides in summary are:

• Registration of properties: If you’re looking to lease, sell, mortgage, or make another agreement regarding your property, DLD conducts those kinds of transactions.
• Title deeds issuance: They issue legal documents proving you’re the rightful property owner.
• Escrow accounts: If there are any off-plan properties for sale, the DLD regulates the escrow accounts. When you get the funds earlier, these accounts through the DLD ensure that they’re not wasted.
• Brokerage of real estate: If you’re running a company dealing in real estate brokering, then the DLD can give you a license and provide regulations for you and your agents.
• Resolution of rental disputes: Wherever you live, you might have been in a dispute with your landlord at some time. Well, this body has mechanisms in place that make dispute resolution much easier.
• Real estate investment promotion: Of course, as real estate is one of the main contributors to the growth of the GDP in Dubai, the DLD is a promoter of both local and international investment in local properties.

Real Estate Regulatory Agency

RERA is part of the DLD, they are a separate body, but they’re like a subsidiary in the organizational structure of the Dubai Land Department. So, the DLD oversees everything related to real estate to prevent market value inflation among other things, but RERA is in charge of:

• Registration and licensing: This regulatory agency is in charge of licensing developers, brokers, agencies, and property management companies. RERA sets the standards for licensing and monitors for compliance.
• Consumer protection: If you’re an investor, RERA will protect your rights in the real estate market. Because of RERA everything is more transparent and all possible grievances are easier to handle.
• Strata management: Common property management and homeowners’ associations are handled by RERA. Also, the standards for joint ownership management are set by it.
• Market monitoring and research: The best thing about RERA is that they do thorough research on the supply and demand of the real estate market and its dynamics, and make informed decisions on regulation regarding potential risks.

Property Types for Rent In Dubai

Like anywhere in the world, you have a variety of properties to choose from for rent. It’s truly an amazing set of choices to pick from based on what you need, how much money you have, and what kind of lifestyle you’d like to live.

There are apartments, and they’re the most common type of rental property. Like in most cities, apartments come in different configurations. There are studio apartments, usually one to three-bedroom apartments. The smaller the unit, the lower the market value.

If you’ve seen Dubai, you might conclude that these apartments are usually in tall buildings and these buildings have a ton of great stuff to support the tenants’ lifestyle choices. Usually, there are pools, gyms, and other things.

There are also villas, where you get a lot of space and privacy. Like a beautiful home, you’ll have a private pool, a garden, and your parking space. Of course, you can pick a size from a small townhouse to a luxurious mansion.

Another type of property for rent is a townhouse, you usually have it in a community. These communities are gated, and they offer a perfect balance between community lifestyles and living space. The market value of these increases each year.

If you’d like to live in a more luxurious setting, there are penthouses available for rent on top floors in Dubai buildings where you can see the waterfront and the skyline. That’s what it means to be in a penthouse.

Apart from penthouses for rent, you can also rent duplexes and two-level apartments with stairs. They’re different from the regular apartments because they give you a similar feeling to living in a house. Compared to penthouses, they have a lower market value, which can be great for tenants.

Another type would be serviced apartments. This property type is also available for rent, and it’s much like a hotel because it has housekeeping, room service, etc. But, they’re usually good for a short-term stay.

You have hotel apartments which are more or less like serviced apartments, but they’re a part of a hotel. You can have self-catering or you can choose to have any of the amenities of a regular hotel.

Finally, you have shared accommodations you can rent. This means that you can rent out a room. It’s a cheaper solution for students or people who are single and can manage living with a roommate.

How Does Rent Increase Work In Dubai?

So, hopefully, there are regulations everywhere regarding increasing rent. For Dubai, it’s different. There are regulations set in place by RERA. They’re there to protect both you and your tenants, so you need to know:

• Term renewal: The usual practice is to have a fixed term for one year. However, the landlord and the tenant can come to a different arrangement initially and make the contract longer, but upon renewal they can renegotiate the rent cost.
• Notice period: If you’re living under rent in Dubai, your landlord will let you know 3 months in advance before the expiration of your contract if they want to increase the rent or change the terms of the lease in any way.
• Permissible rent increase: Of course, the landlord cannot increase the rent by 100%, the maximum usually allowed is 5-20%. There’s a comparison done between the average rent for similar properties in the area and other things are taken into account to form this cap. There’s an assessment of the market value of similar properties.
• Considered factors: To determine what is the appropriate percentage, location is considered, age of the building, size, amenities, and other things that are happening in the real estate market.
• Dispute resolution: In the shoes of a tenant, if you believe that the increase is too high, you can file a dispute with RERA. They will facilitate the dispute process through mediation and ensure that everybody complies with regulations.
• Indexation: The real estate index from the Dubai Statistics Center is one thing that can help determine the permissible increase. It’s the index that shows current changes across the real estate market and the market value in different areas of Dubai.
• Payment terms: As always, after both parties agree to the terms, the payment terms can also be updated in the new lease. The agreement can be modified to change the date of payment and the frequency.

Conclusion

The RERA calculator is an amazing tool that can help both landlords and tenants have an idea of what they can do or what they can expect in the future. It’s natural that in a thriving real estate city like Dubai, the market value of real estate increases and so does the rent.

The RERA rental increase calculator helps you see how much the maximum rent increase can be. Make sure you use it before increasing rent or negotiating with your tenant on contract renewal.