Dubai's Landlords and Tenants: Observe Rental Index News

The current condition in Dubai's rental index is unmatched. Landlords want higher rental prices, and tenants want lower rental prices. For this reason, landlords and tenants must stay abreast of any news about the rental index.

Dubai's real estate authority, The Real Estate Regulatory Agency (RERA), regularly releases updates on the rental index. This includes news about changes in rental prices, new rental laws, and other important information related to the rental index. It is important for landlords and tenants to monitor these updates, as it can help them make informed decisions about rental prices and rental contracts.

The Dubai Land Department's Rental Dispute Settlement Centre makes decisions about rental disputes. These decisions are usually based on the Rental Index, which landlords believe does not accurately reflect the market for residential rentals.

Rental Rate Gap and Its Results

The Rental Index shows that the current rental demand is not compliant with the current market value of the properties. Because of that, renters in a market where rental prices are increasing may not want to leave their property after the landlord has given them a 12-month notice to vacate, as the landlord is planning to sell the property. This has caused landlords to submit a complaint to RDC (Rental Dispute Committee) against the tenant for not leaving the property.

If a tenant is evicted, Article 26 of the law states that the landlord cannot rent out the property for two years. If the landlord decides to go ahead, the evicted individual has the right to seek compensation for any damages incurred due to the eviction.

The RDC can assess whether the landlord made a genuine effort to sell the property and, if so, will consider their evidence in determining whether the tenant is due any compensation. The tenant may approach the RDC if proven that the landlord has rented his property to another tenant at a more favorable price after eviction.

Landlords' Dilemma

The current situation has caused an issue for landlords trying to sell their rental properties, as the rent being paid by tenants is too low. This means the landlord cannot sell the property at the right price, as the lower rent devalues the unit. Consequently, the landlord needs the tenant to vacate the property to be able to sell it at a fair price.

A landlord in Dubai can require tenants to move out of their rented property after the tenancy agreement has expired if they want to sell the property. The landlord must inform the tenants at least 12 months before the eviction date by sending an official notification from the Notary Public or through a registered letter.

Consult a Property Agency

The best way to handle this situation is to consult a property agency in Dubai that can help the landlord sell their rental property. The agency can help the landlord assess the property's market value and advise them on the best way to market it. The agency can also help find potential property buyers and assist in the negotiation process.

Conclusion

If you have been affected by rental disputes in Dubai, you should consult a property agency specializing in the UAE rental market. They can provide you with advice and assistance on the best course of action, depending on your circumstances. Additionally, they can provide valuable insight into the laws and regulations governing rental agreements and the legal rights of both landlords and tenants.

Dacha Real Estate specializes in providing properties for sale in Dubai and offers complete property management services. Our goal is to provide the highest quality of service to our clients, and our success has enabled us to remain a key player in the market. Contact us for more details.