CAN TENANTS BE EVICTED FOR NOT AGREEING WITH RENTAL INCREASE IN DUBAI?

As popular as it is, Dubai invites a lot of people to visit and reside for many reasons. With its developing economy, living standards and especially the real estate market, many property owners and investors rent out their properties for tourists and residents. As tenancy contracts are drawn up and renewed, one of the most common things that would come up is the rental value adjustments.

But what if the tenants refuse an increase in the rental value? Can they be evicted by the landlord? Let’s discuss this matter in this blog.

Initially, landlords cannot increase their rent at their own discretion. The Smart Rental Index only permits rental increases to be between 0% and 20%. While the increase is capped to maintain a fair market for the tenants, the landlord should inform their tenants of the raise at least with a minimum 90 day notice. In cases where the tenants refuse the rental hike, the landlord cannot evict them on the spot.

The Dubai Land Department allows tenant eviction only for specific reasons;

• Owners of the property intend to use it for their personal use.

• The property is up for sale.

• The property is up for major renovation.
  

These reasons are the valid terms for a landlord to evict a tenant providing a 12 month notice period via registered / official channels.

When it comes to lease renewal, landlords cannot use the tenant’s security deposit to be used for the increased amount or any service fees associated with it. The security deposit is only for the agreed purposes that are mentioned in the initial lease agreement.

If the landlords impose an unfair rent increase or if tenants face any other perceived injustice, they can file a complaint with the Rental Dispute Centre, which is equipped to resolve such matters through government oversight.

Knowing your rights as a tenant and understanding your rights & limitations to renew lease agreements as a property owner is vital in a face paced property market. So, even if you are an investor in the market to buy a property, looking for quality tenants for your rental property or you are looking to rent a property in Dubai, you should do it with full comprehension.

This is where Anarock Middle East becomes your most valuable asset in Dubai. Understanding every minor detail in the market, we offer the best property solutions to cater to your specific requirement. To buy or manage properties with complete transparency and efficiency, experience a hassle free property journey where every step of your transaction is done for you by us. Contact us or visit our offices to share your real estate requirements with us.