Rent is often the largest monthly expense for households in Dubai, so tenants want to ensure they get the best value for their money. At the same time, landlords want to charge fair market rents to earn optimal returns on their rental properties.
This is where using the RERA Rental Increase Calculator becomes crucial – it helps tenants and landlords determine the appropriate rental rates based on current market conditions.
RERA is part of the Dubai Land Department and regulatory body for Dubai’s real estate sector. RERA’s key responsibilities are maintaining and updating the Rental Price Index.
RERA introduced the Rental Increase Calculator as an easy way for tenants and landlords to access the Rental Price Index data and make informed leasing decisions.
RERA Rental Increase Calculator
RERA oversees Dubai’s real estate sector. It was established in 2007 to regulate real estate practices, protect the rights of all parties involved in property transactions, and ensure transparency and accuracy of information.
Some key features of RERA include:
- Registering and licensing real estate brokers and agents
- Regulating advertising and marketing of projects
- Controlling development planning and promoting transparency
- Resolving disputes between landlords and tenants
- Updating the Rental Price Index and rental calculator
The Rental Price Index is a database maintained by RERA that documents the prevailing average annual rents for different types of properties in various areas across Dubai. It is updated every year based on extensive market research.
The Rental Price Index enables fair and transparent rental transactions by providing a benchmark for market rents in any location.
Tenants can refer to the Rental Price Index to verify whether the rent demanded by a landlord is justified. Landlords can also use the index to price their properties appropriately based on current market rates.
How to Use the RERA Rental Increase Calculator
The RERA calculator can be easily accessed in two ways:
- Download the Dubai REST app on your smartphone and log in
- Visit the official Dubai Land Department website (www.dubailand.gov.ae)
Once you have accessed the calculator, you need to enter some key details like:
- Location/area of rental property
- Type of property (apartment, villa, etc.)
- Number of bedrooms
- Annual rent you currently pay
- Contract expiry date
Now, Simply click ‘Calculate,’ and the calculator will display the average market rent for comparable properties in that location.
Results from the RERA Calculator
The calculator will show you the prevailing range of market rents for properties similar to yours in the location you entered. This gives you a clear idea of the average rents for comparable units in your area.
Eligibility for a rental increase
The RERA calculator result will also tell you if your landlord is entitled to increase your rent based on the difference between your current rent and the average market rate. It will specify the maximum percentage increase permitted in your case.
For instance, if your current rent is 30% below market average, the landlord can raise it by up to 15%. However, no increase is permitted if you are already paying the market rate.
Benefits of Using the RERA Rental Increase Calculator
The RERA calculator is an invaluable tool for tenants to verify whether the rent demanded by landlords for a particular property is justified by prevailing market rates in that area.
It allows tenants to make well-informed decisions when searching for apartments or villas to rent in Dubai based on a clear understanding of the prevailing market rents.
Conclusion
The RERA Rental Increase Calculator is an invaluable, impartial tool that benefits tenants and landlords by bringing transparency to Dubai’s rental market. It enables tenants to verify whether the rent demanded is fair and gives landlords a benchmark to price their units correctly.
This calculator ensures rental transactions in Dubai remain equitable and consistent with prevailing market rates. Tenants and landlords alike are advised to make the most of this free online tool as part of their rental process.
