WHY PEOPLE IN THE SAME BUILDING PAY DIFFERENT RENTS IN DUBAI

In Dubai this can happen very often; two people live in the same building, same layout, same number of bedrooms, maybe even the same floor but they pay completely different rents.

It feels confusing. Sometimes it feels unfair. But in most cases, this difference is completely legal and there are clear reasons why it happens.

One of the biggest reasons for different rent prices is the payment method. A tenant who pays in one cheque usually gets a better deal than someone paying in four, six, or twelve cheques. The reason for this is that one cheque gives the landlord the full money upfront. More cheques spread the cash out and increase the landlord’s risk. So landlords normally reward fewer cheques with lower rent.

Is this legal?

Every rental contract in Dubai must have a written and clear rent amount. If the rent is written in the contract and both sides agreed, then that becomes the official number. So, even if the rents for two identical units differ, it is completely legal if the contract mentions it.

Is there a limit to this difference?

Yes, there is a set rent limit legally set by the Dubai Land Department. This is the body that regulates the rent and sale value, RERA Rental Index, which shows the average rent in each area for each type of property is accessible for all. This way landlords can charge any amount in between the legal limits.

So even if your neighbour got a better deal, it still must fall inside the rental index rules.

Some reasons for rental price differences are:

• Number of cheques

• Different phases of the market when the contracts were signed

• Property conditions / amenities

• Negotiation

• Landlord personal situations

• Length of the tenancy

In Dubai, the rental system gives space for negotiation, different payment plans, and market changes all within a controlled legal structure. So, knowing where to look, how to negotiate, which amenities and property features to demand or to refuse can help you save money and troubles.

A regular home-seeker might not know the hotspots in the market or the best negotiation skills. This is where getting professional assistance takes weight off of your shoulders. A little help goes a long way in terms of market expertise, negotiation skills, market credibility, ensuring compliance, assistance with financial exchanges and many other things.

At Anarock Middle East, we train our consultants so that when you reach out to us, they have everything you require to match your property requirements. Leaving you free of the burden while getting you the best deal in Dubai with transparency, compliance and accuracy held to its highest standards. Contact us to share your requirements and let’s get started!